How to Terminate a Collective Bargaining Agreement Lawfully in France
The termination (dénonciation) of a collective bargaining agreement or collective accord is a major legal act that ends the application of a negotiated instrument. Whether the initiative comes from the employer or from trade unions, this procedure is strictly governed by the French Labour Code and the case law of the Cour de cassation (French Supreme Court). An irregular termination cannot be relied upon against the parties and may engage the liability of its author.
For the employer, termination may be driven by economic considerations (adapting to a competitive environment), organisational needs (harmonising statuses after a merger) or legal reasons (bringing arrangements into line with new statutory provisions). For trade unions, it is a lever for renegotiation when the terms of the instrument in force no longer meet employees’ expectations.
In this article, DAIRIA Avocats sets out the rules applicable to the termination of collective bargaining agreements and accords, the effects of termination on employees’ rights, and the essential precautions to conduct this procedure with full legal security.
What is the termination of a collective bargaining agreement?
Termination (dénonciation) is the unilateral act by which a signatory party expresses its intention to no longer be bound by a collective bargaining agreement or accord. It is provided for by Articles L.2261-9 to L.2261-13 of the French Labour Code.
It is essential to distinguish termination from revision: revision aims to amend the instrument in force while keeping it alive, whereas termination aims to bring it to an end, in whole or in part. Termination is therefore a far more radical act, with significant consequences for employees.
Who may terminate?
Only the signatory parties (or those who subsequently acceded to the instrument) may terminate a collective bargaining agreement or accord. On the employer side, this means the employer (for a company-level accord) or the signatory employers’ organisation (for an industry-wide agreement). On the employee side, this means the signatory or acceding trade unions.
The Cour de cassation has held that, to produce its full effects, termination must come from all the signatories on the same side (employer or unions). If only one of the signatory trade unions terminates the agreement, it continues to apply between the other signatories (Cass. soc., 5 March 2008, no. 06-46.367).
Full termination and partial termination
Full termination
Full termination covers the entire agreement or accord. This is the most common and legally the simplest case. Article L.2261-9 of the French Labour Code provides that the agreement or accord may be terminated by all the employer signatories or all the employee signatories.
Partial termination
Termination may cover only certain clauses or chapters of the agreement, provided that the agreement expressly allows this or that the provisions concerned form an autonomous and coherent set. Article L.2261-11 of the French Labour Code provides that where termination comes from some of the signatories, it does not prevent the instrument from remaining in force between the other signatory parties.
Case law is nonetheless strict: partial termination is only possible if the terminated clauses can be separated from the rest of the agreement without altering its overall balance (Cass. soc., 12 October 2005, no. 04-13.587). The court verifies that partial termination does not strip the agreement of its substance and does not create an unjustified imbalance between the parties.
The termination procedure: the mandatory steps
Termination follows a formal procedure, non-compliance with which renders the termination unenforceable. Below are the steps that must be scrupulously observed.
Step 1: notification to the co-contracting parties
Article L.2261-9 of the French Labour Code requires that termination be notified to all signatories (and acceding parties) of the agreement or accord. This notification must be made by registered letter with acknowledgement of receipt or by any means enabling a certain date to be given to the notification.
The notification must be clear and unequivocal: it must express, without ambiguity, the intention to end the negotiated instrument. Mere criticism of the provisions in force or a request to renegotiate does not constitute a termination (Cass. soc., 5 December 2007, no. 06-17.761).
Step 2: compliance with the notice period
Termination only takes effect at the end of a three-month notice period, unless a contractual clause provides for a different period (Article L.2261-9, paragraph 2). This three-month notice period runs from the notification. During this period, the agreement continues to apply normally.
The purpose of the notice period is to allow the opening of negotiations with a view to concluding a replacement accord. The Cour de cassation has held that the terminating party must comply with the notice period and cannot unilaterally dispense with it, even by invoking urgency (Cass. soc., 17 September 2003, no. 01-44.707).
Step 3: filing the termination
The termination must be filed with the DREETS (formerly DIRECCTE) and with the registry of the labour court (conseil de prud’hommes), following the same formalities as the accord itself (Article D.2231-8 of the French Labour Code). In practice, filing is now carried out on the TéléAccords platform.
Failure to file does not render the termination void, but it becomes unenforceable against third parties—that is, against employees who were not informed and who may continue to claim application of the terminated instrument.
The effects of termination: survival and salary guarantee
The termination of a collective bargaining agreement does not immediately end employees’ rights. The French Labour Code organises a protective mechanism in two stages.
The 12-month survival period
At the end of the 3-month notice period, the terminated agreement continues to produce its effects for a maximum period of 12 months (Article L.2261-10 of the French Labour Code). In total, employees therefore benefit from a period of 15 months (3 months’ notice + 12 months’ survival) during which the agreement continues to apply.
The purpose of this survival period is to give the parties time to negotiate a replacement accord (accord de substitution) that will replace the terminated agreement. If a replacement accord is concluded before the end of the 15 months, it immediately replaces the terminated agreement.
The salary guarantee introduced by the 2016 Labour Act
Before the Labour Act of 8 August 2016 (Law no. 2016-1088), employees retained, upon expiry of the survival period and in the absence of a replacement accord, the benefit of the acquired individual advantages (avantages individuels acquis). This concept, developed by case law, posed considerable practical difficulties due to its vague and litigious nature.
Since the 2016 Labour Act, the mechanism has been clarified. Article L.2261-13 of the French Labour Code now provides that, where no replacement accord has been concluded upon expiry of the survival period, employees retain a salary guarantee whose annual amount cannot be lower than the remuneration paid, under the terminated agreement or accord and the employment contract, over the last twelve months.
This salary guarantee is understood as an overall annual amount and not as the maintenance, item by item, of each element of remuneration. The employer may therefore restructure the composition of remuneration (removing a bonus, increasing base salary) provided that the overall annual amount does not decrease.
The fate of non-salary clauses
The salary guarantee only covers elements of remuneration in the strict sense. Other contractual advantages (additional leave, rest days, working conditions, termination indemnities above the statutory minimum) are not covered by this guarantee and cease to apply upon expiry of the survival period, in the absence of a replacement accord.
This is a frequently overlooked point that can have significant consequences for employees. For example, if the terminated agreement provided for a severance indemnity above the statutory minimum, this enhanced indemnity will no longer apply after the survival period, unless it is carried over into a replacement accord or into the individual employment contract.
Negotiating a replacement accord
Article L.2261-10 of the French Labour Code requires that new negotiations be opened at the request of one of the interested parties within three months following the date of termination. This obligation applies both to the author of the termination and to the other parties.
The negotiation of the replacement accord is open to all representative trade unions, and not only to the signatories of the terminated agreement. This broadening of the circle of negotiators is consistent with the fact that termination ends the agreement for all employees.
The content of the replacement accord may be freely determined by the parties: it is not required to reproduce the provisions of the terminated agreement. It may be less favourable than the previous instrument, subject to complying with public policy provisions and the stipulations of the industry-wide agreement in matters falling within block 1 (Article L.2253-1 of the French Labour Code).
If the negotiations succeed, the replacement accord takes effect as of its entry into force and replaces the terminated agreement. If the negotiations fail, the salary guarantee regime applies.
Key points of vigilance
The termination of a collective bargaining agreement is a sensitive operation that requires rigorous preparation. Below are the main points to watch:
- Verify signatory status: only signatories (or acceding parties) may terminate. An employer who voluntarily applies an agreement without being legally bound to do so cannot terminate it within the meaning of Article L.2261-9; it must proceed by way of terminating a unilateral commitment or a custom (usage).
- Scrupulously comply with the procedure: notification, notice period, filing. Any irregularity renders the termination unenforceable.
- Anticipate the social consequences: termination may be perceived negatively by employees and staff representatives. Transparent communication about the reasons and the prospects for renegotiation is essential.
- Prepare for the replacement negotiation: do not wait until the end of the notice period to open discussions. The 15 months of survival pass quickly, and the absence of a replacement accord may have heavy financial consequences (maintenance of the salary guarantee).
- Audit individual employment contracts: some agreement clauses may have been incorporated into employment contracts (by reference or by express reproduction). These contractual clauses survive the termination of the agreement and can only be modified with the employee’s consent.
- Distinguish termination from a challenge (mise en cause): in the event of a business transfer (Article L.1224-1), merger or disposal, the agreement is not terminated but challenged (mise en cause). The regime is similar (15 months’ survival, replacement negotiation) but the triggering event is different (Article L.2261-14 of the French Labour Code).
DAIRIA Avocats assists you at every stage of the termination, from the preliminary opportunity assessment to the drafting of the replacement accord, including the handling of notifications and filing. Our expertise in collective labour law ensures the legal security of your operations.
FAQ
Can an employer unilaterally terminate an industry-wide collective bargaining agreement?
No. An individual employer cannot terminate an industry-wide collective bargaining agreement, which is negotiated and signed by the representative employers’ organisations of the industry. Only a signatory employers’ organisation (or all the signatory employers’ organisations) may terminate an industry-wide agreement. However, an employer may unilaterally terminate a company-level accord that it has signed, subject to complying with the statutory procedure (notification, notice period, filing).
What happens to contractual advantages after the survival period?
Since the Labour Act of 8 August 2016, employees benefit from a salary guarantee (Article L.2261-13 of the French Labour Code): their annual remuneration cannot be lower than that received during the 12 months preceding the expiry of the survival period. However, non-salary advantages (additional leave, rest days, enhanced termination indemnities) cease to apply unless they have been carried over into a replacement accord or into the individual employment contract.
Can a termination be withdrawn?
The question is debated among legal scholars. The Cour de cassation has not ruled on it definitively. In principle, since termination is a unilateral act, it produces its effects as of its notification to the co-contracting parties and should not be capable of being withdrawn without the agreement of all the parties. However, if all signatories consent to withdrawal before the expiry of the notice period, an amicable cancellation appears conceivable. It is advisable to formalise this withdrawal in writing and to carry out a new filing.
What is the difference between termination and a challenge (mise en cause) of a collective bargaining agreement?
Termination is a voluntary act by a signatory party that decides to end the agreement. A challenge (mise en cause), provided for in Article L.2261-14 of the French Labour Code, results automatically from an external event: business transfer, merger, split, or change of activity leading to the application of a new agreement. The effects are similar (3-month notice period, 12-month survival, replacement negotiation, salary guarantee), but the triggering event is different. A challenge requires no notification formality since it operates automatically by operation of law.
Can a fixed-term collective bargaining agreement be terminated?
In principle, no. A fixed-term agreement cannot be terminated before its expiry, unless a contractual clause expressly provides for it (Article L.2222-4 of the French Labour Code). It ceases to produce its effects upon reaching the agreed term. However, since the 2016 Labour Act, collective bargaining agreements and accords whose duration is not expressly stipulated are deemed concluded for a term of 5 years (rather than for an indefinite term), which significantly alters the practical relevance of termination.