Section 1: Public policy

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Article L2242-7

French Labour CodeIn force
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Updated 7 Nov 2023

In companies where one or more trade union sections of representative organisations have been set up, an employer who has not fulfilled the obligation to negotiate on effective wages mentioned in 1° of article L. 2242-1 is subject to a penalty. If no breach of this obligation has been found during a previous inspection over the previous six calendar years, the penalty is capped at an amount equivalent to 10% of the exemptions from social security contributions mentioned in article L. 241-13 of the Social Security Code in respect of remuneration paid each year in which the breach is found, over a period not exceeding three consecutive years from the year preceding the inspection. If at least one breach of this obligation has been detected during a previous inspection over the previous six calendar years, the penalty is capped at an amount equivalent to 100% of the exemptions from social security contributions mentioned in the same article L. 241-13 in respect of remuneration paid each year in which the breach is detected, over a period not exceeding three consecutive years including the year of the inspection.

Where the frequency of negotiations on actual salaries has been extended to more than one year in application of article L. 2242-11 of this code, the first paragraph is not applicable for the period set by the agreement. At the end of this period, the first paragraph of this article shall apply.

When the competent administrative authority establishes the breach referred to in the first paragraph, it sets the amount of the penalty, taking into account in particular the efforts made to open negotiations, the economic and financial situation of the company, the seriousness of the breach and the circumstances that led to the breach, under conditions set by decree.

The penalty is recovered under the conditions laid down in Section 1 of Chapter VII of Title III of Book I of the Social Security Code.

The proceeds of the penalty are allocated to the general social security scheme, in accordance with the same procedures as those used to deduct the reduction referred to in article L. 241-13 of the same code.

Mariela Petrova

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Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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