Changing the Applicable Collective Bargaining Agreement: Harmonising Employment Terms 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 being 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 and better harmonise it across the group.

The Principle: The Collective Agreement Follows the Principal Activity

The collective bargaining agreement applicable within your company is not a matter of free choice; it depends on the principal activity actually carried out there. That activity, identified by an APE code (the French business activity code), objectively determines the applicable industry-wide agreement. For instance, 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 previous framework.

It is important to note that a management’s unilateral decision to change agreements will never, on its own, be sufficient to force such a change. You must build a course of action grounded in real, factual evidence.

The Mechanism: Organising the Change of Principal Activity

To modify the applicable collective agreement, it is essential to organise and document a tangible, 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 execution of works, thereby triggering a change of agreement.

This “mise en cause” (calling into question, i.e. the automatic lapse of the original agreement triggered by the change of activity) requires the assembly of a solid evidence file, including items such as:

• A description of the 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 shifted 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 works council) of the entity concerned. This consultation framework serves essential objectives:

1. To inform the CSE loyally and 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 capable of justifying the change before a judge in the event of a challenge.

Where the operation forms part of a broader group strategy, it is advisable to consider consulting the central works council (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 you to observe a three-month notice period, followed by a twelve-month “survival” period (période de survie). As a result, for up to 15 months after the mise en cause, the rules of the original agreement remain applicable to the employees present on that date. During this same period, the new agreement becomes the reference framework for your company.

It is within these 15 months that you must undertake the negotiation of 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 the mise en cause of the industry-wide agreement does not automatically call into question existing company-level agreements (accords d’entreprise). These remain valid until a termination (dénonciation) takes place. In the interest of harmonisation, it is crucial to consider and schedule the termination of these agreements.

The termination must likewise take account of a three-month notice period followed by a twelve-month survival period, which largely aligns with the timeline of the mise en cause of the industry-wide agreement. By combining the mise en cause of the collective agreement with the termination of internal agreements, you establish a framework conducive to renegotiating a coherent, unified employment status across your group.

Frequently Asked Questions

What are the timelines for changing the applicable collective agreement?

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

What documents are required to prove a change of activity?

Robust documentation should include a description of the activities, the organisational charts, and the breakdown of revenue and teams.

Must I consult the CSE even if the activity is changing?

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?

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

What should be done with ongoing company-level agreements?

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

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

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