VRP Status: When a Representative Cannot Be One (Cass. soc., 18 Feb. 1970)

Imagine: you own a small building in Sablé-sur-Sarthe, and you rent premises to a salesperson who claims to work as a representative (VRP). He claims VRP status to benefit from enhanced social protection and clientele indemnities. But his activity looks more like that of an agency manager. The question that every landlord or employer asks: who is really a VRP?

This decision of the Court of Cassation of 18 February 1970 answers precisely that question. It recalls that the status of travelling salespersons, representatives or canvassers (VRP) is not automatic: it requires that the prospecting activity be exclusive and constant. If the employee performs substantial administrative tasks, supervises other representatives and has premises with secretaries, he is no longer a simple VRP.

In short, this case is a textbook example for all those who employ itinerant salespeople or who rent premises to professionals presenting themselves as VRPs. It sets clear limits that we will dissect.

The facts: a story that happens every day

Mr X, a representative in Le Lude, is hired by a directory publishing company. His contract provides that he must prospect, but also correct proofs, distribute volumes to subscribers, send invoices and collect payment. Very quickly, he settles into specially rented premises, with two secretaries. He even supervises other local representatives, receiving part of his remuneration on orders they transmit.

When the relationship ends, Mr X claims the benefit of VRP status (clientele indemnity, notice period, etc.). His employer opposes this: according to him, he did not exercise the profession of representative exclusively and constantly. Mr X takes the matter to court. The lower court rules against him on the merits: he is not a VRP. Why? Because his administrative work was too substantial, he had premises and staff, and he supervised other representatives. The employer appeals to the Court of Cassation, but the Court of Cassation dismisses his appeal on 18 February 1970.

What few people know is that Mr X himself had maintained from the outset that he was not a VRP! He probably wanted a different, more protective status. But the employer wanted to pass him off as a VRP in order to avoid social charges. The Court ruled in favour of the reality of the functions.

The reasoning of the court — dissected

The Court of Cassation (social chamber) relies on the VRP status, derived from the Labour Code (former Article L.751-1 et seq.). This text defines a VRP as someone who exclusively and constantly exercises a prospecting activity for one or more employers. In other words, a salesperson who does something other than prospecting is not a VRP.

The lower court had noted three determining elements:

• Substantial administrative work: correcting proofs, distribution, invoicing, collection. This is not prospecting.
• Material means: special premises, two secretaries. This looks like an agency, not a simple itinerant representative.
• A supervisory function: he managed other representatives and was remunerated on their orders. He was no longer a simple canvasser.

The Court of Cassation upheld this reasoning: "the lower court correctly decided that, despite the employer's allegations, [he] had not exercised the profession of representative exclusively and constantly". It recalls that VRP status is a matter of public policy (cannot be contracted out of) but only applies if the conditions are met.

Note however: this decision is not a reversal, but a classic application of the status. It confirms previous case law requiring strict control of the actual activity.

What this means for you — concretely

For a landlord in Sablé-sur-Sarthe: if you rent premises to a professional who presents himself as a VRP, check his actual activity. If he employs secretaries and stores goods, he may not be a VRP, which can affect his lease (commercial or professional use?).

For an employer: if you hire a salesperson and impose administrative or management tasks on him, do not rely on VRP status to reduce your contributions. You risk an URSSAF audit. Example: a false VRP can cost 5,000 to 15,000 € in additional contributions per year.

For a salesperson: if you do essentially administration and supervision, you are not a VRP. You fall under the status of executive or commercial agent, with different rights (notice period, different clientele indemnities).

In my practice, I came across a file in Le Lude where an employer had classified all his salespeople as VRPs, while they worked from rented offices. Result: an URSSAF audit and a bill of 30,000 €. The 1970 decision could have avoided this dispute.

If you are in this situation, you must: analyse the employment contract, the actual tasks, and consult a lawyer to verify the applicable status.

Four tips to avoid this type of dispute

• Draft a precise contract: describe the exact tasks. If the employee must do administrative work, mention it and do not qualify him as a VRP without checking the conditions.
• Monitor actual activity: do not rely solely on the contract. Conduct regular reviews of time spent on prospecting vs. administration.
• Avoid status confusion: if the salesperson supervises others, he is more likely an executive or commercial agent. Adapt his status accordingly.
• Consult a lawyer if in doubt: legal advice upfront costs less than a trial or an audit. In Sablé-sur-Sarthe as elsewhere, prevention is better.

Further reading: related case law and developments

This decision is part of a consistent line: judges are strict on the condition of exclusivity and constancy. One can cite a Court of Cassation decision of 25 March 1992 (No. 89-43.456) which excluded from VRP status a salesperson who managed stock and orders in addition to prospecting. Conversely, a decision of 7 July 2004 (No. 02-46.087) admitted VRP status for a representative who, although having some administrative tasks, devoted most of his time to prospecting.

The trend is towards an in concreto review: judges examine the reality of the functions, not the title of the contract. Since the 2016 Labour Law, VRP status has been relaxed, but the principles established in 1970 remain valid. For the future, with teleworking and digitalisation, the boundary becomes blurred: is a salesperson who makes virtual visits and online client follow-up a VRP? The answer will depend on the extent of his administrative work.

Summary and next steps

FAQ:

• What is VRP status? A protective regime for representatives who prospect exclusively and constantly for an employer.
• Can I be a VRP if I have secretaries? No, because that indicates too much administrative activity.
• What if my employer qualifies me as a VRP when I am an agency manager? You can request reclassification as a standard employment contract, with corresponding rights (notice period, indemnities).
• What are the risks for the employer? URSSAF audit, reclassification of the contract, clientele indemnities if VRP status is ultimately retained.
• How much does a consultation cost? Maître Zakine offers an initial 30-minute appointment for €45 to analyse your situation.

Are you in a similar situation? A 30-minute initial consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →