Changing Collective Bargaining Agreements: Harmonising Employment Status Across a Group in France

To successfully transfer 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 employment status of your workforce so as to harmonise it more effectively across the group.

The Principle: The Collective Agreement Follows the Principal Activity

The collective agreement applicable within your company is not a matter of free choice; it depends on the principal activity carried out there. This activity, identified by an APE code (business activity classification code), objectively determines the applicable branch 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 stays consistent with its former framework.

It is important to note that a management’s mere unilateral decision to change agreement will never be sufficient to force such a change. You must build a course of action based on real, factual grounds.

The Mechanism: Organising the Change of Principal Activity

To change the applicable collective 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 brings together field teams could shift its activity towards the execution of works, thereby triggering a change of agreement.

This challenge (mise en cause) to the original agreement requires building a solid evidentiary file, including elements such as:

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

Consulting the CSE: Transparency and Documentation

The change of activity and the regrouping of teams must also go through a process of information and consultation with the CSE (Comité social et économique, the works council) of the entity concerned. This consultation framework serves essential objectives:

1. To inform the CSE in good faith of the transformations under way and their consequences, in particular the change of applicable agreement.
2. To gather a body of supporting documents that can justify the change before a judge in the event of a dispute.

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 Challenge: Transition Period

The mise en cause does not immediately alter the framework of the original agreement. The scheme requires observance of a three-month notice period, followed by a 12-month survival period (période de survie). Thus, for up to 15 months after the mise en cause, the rules of the original agreement remain applicable 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 challenging the branch agreement does not automatically affect existing company-level agreements (accords d’entreprise). These remain valid until a termination (dénonciation) takes place. For the sake of harmonisation, it is crucial to plan and schedule the termination of these agreements.

Termination must likewise observe a three-month notice period followed by a 12-month survival period, which largely coincides with the timeline of the challenge to the branch agreement. By combining the mise en cause of the collective agreement with the dénonciation of internal agreements, you create a framework conducive to renegotiating a coherent and unified employment status across your group.

Frequently Asked Questions

What are the timeframes for changing collective agreements?

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

What documents are required to prove a change of activity?

Solid documentation should include a description of the activities, the organisation 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 evidentiary file.

Which agreement applies after the challenge (mise en cause)?

After the challenge, the new agreement becomes the reference agreement, even though the former rules continue to apply during the survival period.

What happens to ongoing company-level agreements?

Company-level agreements continue to apply until their termination, which can be organised in parallel with the challenge to the branch agreement.

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

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