Changing Collective Agreement: Harmonizing Employment Statuses within a Group

To successfully transfer a business, often newly acquired, from one branch collective agreement to another, you must provoke a real change in the main activity being carried out. This process, framed within Articles L. 2221-1 and following of the French Labour Code, allows you to reform the social status of your employees to better harmonize it within the group.

The Principle: The Collective Agreement According to the Main Activity

The application of a collective agreement within your company is not left to free choice but is based on the main activity conducted there. This activity, defined by an APE code (Activité Principale Exercée - Main Activity Code), objectively determines the applicable branch agreement. For example, in the context of an acquisition, the original agreement of the target company remains in place as long as the main activity remains compliant with its former framework.

It is important to note that a mere unilateral decision by management to change the collective agreement will never suffice to enforce this change. You must establish a method of action based on tangible elements.

The Mechanism: Organizing the Change of Main Activity

To modify the applicable collective agreement, it is essential to organize and document a tangible and verifiable change in the company’s main activity. For example, a company specializing in engineering consulting that consolidates field teams could shift its activity towards executing work, resulting in a change of collective agreement.

This challenge to the original agreement requires the establishment of a evidentiary file that should include:

• A description of activities before and after the change
• A clear list of transferred teams and positions
• Organizational charts before and after the reorganization
• The share of revenue and profit that has evolved with the new dimension of the activity
• Contracts and markets awarded to the participating entity.

Consultation with the CSE: Transparency and Documentation

The change of activity and the regrouping of teams must also undergo a process of information and consultation with the CSE (Comité Social et Économique - Social and Economic Committee) of the targeted entity. This consultation framework pursues essential objectives:

1. Loyally inform the CSE of the ongoing transformations and their implications, particularly regarding the change of the applicable agreement.
2. Gather a set of credible documents that can legitimize the change before the judge in case of contestation.

It is advisable, when the operation fits into a broader strategy of your group, to consider consulting the central CSE.

The Effects of the Challenge: Transition Period

The challenge operation does not immediately modify the framework of the original agreement. The provisions require respecting a 3-month notice period, followed by a 12-month survival period. Thus, for up to 15 months after the challenge, the rules of the original agreement remain applicable to employees present at that date. During the same time, the new agreement becomes the reference for your company.

It is during these 15 months that you must initiate negotiations for a substitution agreement that will organize the transition to the new collective framework.

Aligning with Existing Company Agreements

It is important to note that the challenge of the branch agreement does not automatically annul existing company agreements. These remain valid until a denunciation occurs. In the interest of harmonization, it is crucial to consider and schedule the denunciation of these agreements.

The denunciation must also take into account a notice period of 3 months followed by a survival period of 12 months, which largely aligns with the challenge of the branch agreement. By combining the challenge of the collective agreement and the denunciation of internal agreements, you create a conducive framework for renegotiating a coherent and unified social status within your group.

Frequently Asked Questions

What are the timeframes for changing a collective agreement?

The change process includes a 3-month notice followed by a 12-month survival period. This provides 15 months to negotiate the new terms.

What documents are necessary to prove a change of activity?

A solid documentation should include the description of activities, organizational charts, and the distribution of revenues and teams.

Should I consult the CSE even if the activity changes?

Yes, the CSE must be informed and consulted to ensure transparency and construct a reliable evidentiary file.

Which agreement applies after the challenge?

After the challenge, the new agreement becomes the reference agreement, even if the old rules still apply during the survival period.

What should be done with ongoing company agreements?

The company agreements continue to apply until their denunciation, which can be organized in parallel with the challenge of the branch agreement.

The key lies in planning, informing, and documenting, thereby ensuring the harmonization of social statuses and compliance with legal requirements.

📌 This article is part of the complete file Social Engineering: Structuring and Securing Your Operations.