Changing Collective Bargaining Agreements: Harmonizing Employee Status Within a Group

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

The Principle: The Collective Agreement Follows the Principal Activity

The collective bargaining agreement that applies 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 (the French business activity classification code), objectively determines the applicable sector-level 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 team’s mere unilateral decision to change the applicable agreement will never be enough to force such a change. You must build a course of action grounded in real, factual elements.

The Mechanism: Organizing the Change of Principal Activity

To modify the applicable collective agreement, it is essential to organize and document a tangible, verifiable change in the company’s principal activity. For instance, a company specializing in engineering consulting that consolidates field teams could shift its activity toward the execution of works, thereby triggering a change of agreement.

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

• A description of the activities before and after the change
• A clear list of the teams and functions transferred
• Organizational charts before and after the reorganization
• The share of turnover and margin that has shifted with the new dimension of the 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 works council) of the entity concerned. This consultation framework serves essential objectives:

1. Inform the CSE fairly of the transformations underway and their consequences, in particular the change of applicable agreement.
2. Gather a body of supporting documents capable of legitimizing the change before a court in the event of a challenge.

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

The Effects of the Mise en Cause: A 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 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 within these 15 months that you must undertake the negotiation of a substitution agreement (accord de substitution) organizing the transition to the new contractual framework.

Coordinating With Existing Company-Level Agreements

It is important to note that calling the sector-level agreement into question does not automatically call into question existing company-level agreements (accords d’entreprise). These remain valid until a denunciation (dénonciation, formal termination) takes place. In the interest of harmonization, it is crucial to plan and schedule the denunciation of these agreements.

Denunciation must likewise observe a 3-month notice period followed by a 12-month survival period, which largely aligns with the timeline of the mise en cause of the sector-level agreement. By combining the mise en cause of the collective agreement with the denunciation of internal agreements, you establish a framework conducive to renegotiating a coherent and unified employee status across your group.

Frequently Asked Questions

What are the timeframes for changing the collective 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 required to prove a change of activity?

Solid documentation should include a description of the activities, organizational 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 mise en cause?

After 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 they are denounced, which can be organized in parallel with the mise en cause of the sector-level agreement.

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

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