Changing Collective Bargaining Agreements: Harmonising Employee Status Within a Group in France

To successfully move a company — often newly acquired — from one industry-wide collective bargaining agreement (convention collective de branche) to another, you must bring about a genuine change in the principal activity actually carried out. This process, governed by Articles L. 2221-1 et seq. of the French Labour Code, allows you to reshape the social status of your employees in order to better harmonise it within the group.

The Principle: The Collective Bargaining Agreement Follows the Principal Activity

The collective bargaining agreement applicable within your company is not a matter of free choice; it is based on the principal activity carried out there. This activity, identified by an APE code (French business activity classification code), objectively determines the applicable industry-wide agreement. For example, in the context of an acquisition, the target company’s original agreement remains in place for as long as its principal activity continues to match its former framework.

It is important to note that a mere unilateral management decision to change the agreement will never be sufficient to force such a change. You must build an approach grounded in real, factual elements.

The Mechanism: Organising the Change of Principal Activity

To change the applicable collective bargaining agreement, it is essential to organise and document a tangible and verifiable change in the company’s principal activity. For example, a company specialising in engineering consultancy that consolidates field teams could shift its activity towards the actual performance of works, thereby triggering a change of agreement.

This “calling into question” (mise en cause) of the original agreement requires building a solid evidence file, including elements such as:

• A description of activities before and after the change
• A clear list of the teams and functions transferred
• Organisational charts before and after the reorganisation
• The share of turnover and margin that has evolved with the new scope of activity
• The contracts and projects awarded to the entity concerned.

Consulting 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, the social and economic committee) of the target entity. This consultation framework serves essential objectives:

1. Fairly informing the CSE of the ongoing transformations and their consequences, in particular the change of applicable agreement.
2. Gathering a body of supporting documents capable of legitimising the change before a court in the event of a challenge.

Where the operation forms part of a broader group strategy, it is advisable to consider consulting the central CSE (CSE central).

The Effects of the Mise en Cause: Transition Period

The mise en cause does not immediately alter the framework of the original agreement. The mechanism requires observing a notice period of 3 months, followed by a survival period (période de survie) of 12 months. As a result, for up to 15 months after the mise en cause, the rules of the original agreement continue to apply to employees present on that date. During this same period, the new agreement becomes the reference agreement for your company.

It is during these 15 months that you will need to negotiate a substitution agreement (accord de substitution) organising the transition to the new contractual framework.

Coordinating With Existing Company-Level Agreements

It is important to note that calling the industry-wide agreement into question does not automatically call into question existing company-level agreements. These remain valid until a termination (dénonciation) takes place. In the interest of harmonisation, it is crucial to anticipate and schedule the termination of these agreements.

The dénonciation must also take into account a 3-month notice period followed by a 12-month survival period, which largely coincides with the timeline of the mise en cause of the industry-wide agreement. By combining the mise en cause of the collective bargaining agreement with the dénonciation of internal agreements, you establish a framework conducive to renegotiating a coherent and unified social status across your group.

Frequently Asked Questions

What are the timeframes for changing a collective bargaining agreement?

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

What documents are needed to prove a change of activity?

Solid documentation must include a description of activities, organisational charts, and the breakdown of revenue 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 build a reliable evidence file.

Which agreement applies after the mise en cause?

Following the mise en cause, the new agreement becomes the reference agreement, even though the former rules still apply during the survival period.

What happens to ongoing company-level agreements?

Company-level agreements continue to apply until their dénonciation, which can be organised in parallel with the mise en cause of the industry-wide agreement.

The key lies in planning, information, and documentation, thereby ensuring the harmonisation of employee status and compliance with legal requirements.

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