Changing Collective Agreements: Harmonizing Employment Statuses Within a Group
To successfully transfer a newly acquired company from one collective agreement (convention collective) to another, you must effect a real change in the primary activity practiced. This process, set forth in Articles L. 2221-1 and following of the French Labour Code, allows for the reformation of your employees’ social status to better harmonize it within the group.
The Principle: The Collective Agreement Based on Primary Activity
The application of a collective agreement within your company is not left to free choice, but rather depends on the primary activity being carried out, as defined by an APE code (Activité Principale Exercée). This activity objectively determines the applicable branch agreement. For instance, in the case of an acquisition, the original agreement of the target company remains in place as long as the primary activity continues to align with its previous framework.
It is crucial to note that a unilateral decision by management to change the agreement will never be sufficient to enforce this change. You must establish an action plan based on tangible elements.
The Mechanism: Organizing the Change of Primary Activity
To modify the applicable collective agreement, it is essential to organize and document a tangible and verifiable change in the primary activity of the company. For example, a company specializing in engineering consultancy that consolidates field teams might evolve its activity towards the execution of works, leading to a change in the applicable agreement.
This challenge to the original agreement requires the establishment of a proof dossier comprising elements such as:
- A description of activities before and after the change
- A clear list of transferred teams and functions
- Organizational charts before and after the reorganization
- The proportion of revenue and margin that evolved with the new dimension of the activity
- Contracts and projects awarded to the participating entity.
Consultation with the CSE: Transparency and Documentation
Changing activities and consolidating teams must also go through a process of information and consultation with the CSE (Comité Social et Économique) of the targeted entity. This consultation framework pursues essential objectives:
- To inform the CSE fairly about ongoing transformations and their implications, particularly regarding the change of applicable agreement.
- To gather a set of corroborating documents that can legitimize the change before a judge in case of dispute.
It is advisable, when the operation is part of a broader strategy of your group, to consider consulting the central CSE.
The Effects of the Challenge: Transition Period
The process of challenging the original agreement does not immediately modify the framework of the original convention. The mechanism requires compliance with a 3-month notice period, followed by a 12-month survival period. Thus, up to 15 months after the challenge, the rules of the original agreement remain applicable to employees present on that date. During the same time, the new agreement becomes the reference for your company.
It is during these 15 months that you will need to negotiate a substitution agreement that will organize the transition to the new collective framework.
Aligning with Existing Company Agreements
It is important to note that challenging the branch agreement does not automatically cancel existing company agreements. These will remain valid until a termination occurs. For the sake of harmonization, it is crucial to consider and schedule the termination of these agreements.
The termination must also account for a 3-month notice period followed by a 12-month survival period, which largely aligns with the challenge to the branch agreement. By combining the challenge of the collective agreement and the termination 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 deadlines for changing collective agreements?
The change process includes a 3-month notice period followed by a 12-month survival period. This gives 15 months to negotiate the new terms.
What documents are necessary to prove a change in activity?
A solid documentation must include activity descriptions, organizational charts, and the distribution of income and teams.
Must I consult the CSE even if the activity changes?
Yes, the CSE must be informed and consulted to ensure transparency and to create a reliable proof dossier.
What agreement is applied after the challenge?
After the challenge, the new agreement becomes the reference convention even though the old rules still apply during the survival period.
What about existing company agreements?
Existing company agreements continue to apply until their termination, which can be organized in parallel with the challenge to the branch agreement.
The key lies in planning, informing, and documenting to ensure 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.