Changing Collective Agreements: Harmonizing Social Status Within a Group
To successfully transfer a newly acquired company from one collective agreement to another, you must effect a real change in the primary activity applied. This process, outlined in Articles L. 2221-1 and following of the French Labour Code, allows for the reformation of your employees’ social status to better harmonize within the group.
The Principle: The Collective Agreement According to the Primary Activity
The application of a collective agreement within your company is not left to free choice but is based on the primary activity performed. This activity, defined by an APE code (Activité Principale Exercée), 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 primary activity remains compliant with its previous framework.
It is important to note that a unilateral decision by management to change the collective agreement is never sufficient to force this change. You need to establish a method of action based on real elements.
The Mechanism: Organizing the Change in 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 business. For instance, a company specializing in engineering consulting that consolidates field teams could evolve its activity towards project execution, resulting in a change of agreement.
This challenge to the original agreement necessitates the establishment of a solid evidence file, including elements such as:
- A description of activities before and after the change
- A clear list of transferred teams and roles
- Organizational charts before and after reorganization
- The share of turnover and margin that has evolved with the new dimension of the activity
- The contracts and projects awarded to the participating entity.
Consultation with the CSE: Transparency and Documentation
The change of activity and the consolidation of teams must also go through an information and consultation process with the CSE (Comité Social et Économique) of the targeted entity. This consultation framework serves essential purposes:
- To loyally inform the CSE of ongoing transformations and their consequences, particularly those related to the change of applicable agreement.
- To gather a body of evidentiary documents that can legitimize the change before a judge in case of a 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 challenge to the original agreement does not immediately alter the framework of that agreement. The provision requires respecting a 3-month notice period, followed by a 12-month survival period. Thus, until 15 months after the challenge, the rules of the original agreement remain applicable to employees present on that date. During this same time, the new agreement becomes the reference for your company.
It is during these 15 months that you must negotiate a substitution agreement that will organize the transition to the new collective framework.
Articulating with Existing Company Agreements
It is important to note that challenging the branch agreement does not automatically invalidate existing company agreements. These continue to be valid until a termination occurs. In the interest of harmonization, it is crucial to consider and plan the termination of these agreements.
The termination must also take into account a 3-month notice period followed by a 12-month survival period, which largely coincides with the challenge to the branch agreement. By combining the challenge to the collective agreement with the termination of internal agreements, you create a framework conducive to 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 provides 15 months to negotiate new terms.
What documents are necessary to prove a change in activity?
A solid documentation should include activity descriptions, organizational charts, and the distribution of revenues and teams.
Do I need to consult the CSE even if the activity changes?
Yes, the CSE must be informed and consulted to ensure transparency and establish a reliable evidence file.
What agreement applies after the challenge?
After the challenge, the new agreement becomes the reference agreement even though the old rules still apply during the survival period.
What about existing company agreements?
Company agreements continue to apply until they are terminated, which can be organized in parallel with the challenge to 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.