What is a collective performance agreement?

Verified 04 September 2024 - Directorate for Legal and Administrative Information (Prime Minister)

An employer who wishes to adapt its company to market developments can negotiate and conclude a collective performance agreement (CPA). This collective agreement makes it possible to adjust working hours, remuneration and the conditions of professional or geographical mobility within the company. There is no manning requirement to negotiate a CPA. We're doing an update on the regulations.

A collective performance agreement is a collective agreement that allows you to negotiate measures exclusively in the Next 3 domains :

  • Organization of working time
  • Adjustment of remuneration (possibly downwards),
  • Determination of the conditions of professional or geographical mobility within the company.

Please note

Adjustments to hours of work or remuneration must be made in compliance with legal or contractual provisions (compliance with maximum working hours, Smic: titleContent and hierarchical conventional minimum wages, for example).

The Collective Performance Agreement (CPA) is concluded to address the operational requirements of the company or with a view to to preserve or develop employment.

It can be put in place, for example, in the following cases:

  • The need for the employer to redeploy staff to the company’s production sites. The PCA may provide geographical mobility employees.
  • Sustained increase of activity in the company. The CPA may provide for a increase in working hours per week beyond 35 hours.
  • Streamlining personnel management by harmonizing pay rules. The CPA may provide for a change in the structure of remuneration (basic salary, premium of 13e months, for example).

Please note

In order to set up a PCA, the company does not have to have economic difficulties.

All companies may conclude and negotiate a PCA. There is no manning requirement.

When there is at least one shop steward in the company, the employer must negotiate the CPA with the union representative(s).

In the absence of a shop steward, the employer has several options to negotiate the CPA.

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Presence of at least one shop steward

The validity of the agreement depends on the hearing of the trade union organization(s) which signed the agreement, i.e. the number of votes obtained by the trade union organizations on 1er round of the last elections of incumbents in ESC: titleContent.

Trade unions which obtained more than 50% of the votes cast in the last elections of the CSE incumbents

The agreement is valid if it is signed by one or more representative trade union organizations having collected more than 50% of the votes cast on 1er round of the last elections of incumbents in ESC: titleContent.

Trade unions which obtained more than 30% of the votes cast in the last elections of the CSE incumbents

The agreement may be signed by one or more representative trade union organizations having collected more than 30% of votes expressed on 1er round of the last elections of incumbents in ESC: titleContent.

In this case, the employees must be consulted by referendum.

The agreement is validated if more than 50% votes cast by employees.

Other

The scope for negotiating and concluding a collective performance agreement varies according to the size of the company and the presence or absence of ESC: titleContent in this one.

Company of less than 11 employees

The employer may propose the draft collective performance agreement to employees.

The employer must ask the employees about this draft agreement.

The agreement is validated if approved by more than 66.66% employees.

Company of 11 to 20 employees

The procedures are different when the company has an ESC or not.

With CSE

When there is a ESC: titleContent in the company, the employer has 2 possibilities to negotiate a collective performance agreement.

1re possibility: Negotiation with one or more ESC members

The employer may negotiate and conclude an agreement with one or more members holders of the ESC: titleContent.

The agreement shall be validated if it is signed by ESC members representing more than 50% votes cast on 1er round of the last elections of the CSE holders.

2nd possibility: Negotiation with an employee mandated by a trade union organization

The employer may negotiate and conclude an agreement with one or more employees authorized representatives by one or more representative trade union organizations.

The trade union organization(s) must be representative in the sector.

In the absence of representative trade union organizations in the sector, trade union organizations must be representative at national and inter-branch level.

Same union organization may mandate only one employee.

The agreement is signed with the authorized employee(s).

In this case, the company's employees must be consulted by referendum.

The agreement is validated if more than 50% votes cast by employees.

Non-Stop

When there are no ESC: titleContent in the company, the employer has 2 possibilities to negotiate a collective performance agreement.

1re possibility: Consultation of company employees

The employer may propose the draft collective performance agreement to employees.

The employer must ask the employees about this draft agreement.

The agreement is validated if approved by more than 66.66% employees.

2nde possibility: Negotiation with an employee mandated by a trade union organization

The employer may negotiate and conclude an agreement with one or more employees authorized representatives by one or more representative trade union organizations.

The trade union organization(s) must be representative in the sector.

In the absence of representative trade union organizations in the sector, trade union organizations must be representative at national and inter-branch level.

Same union organization may mandate only one employee.

In this case, the company's employees must be consulted by referendum.

The agreement is validated if more than 50% votes cast by employees.

Company of 21 to 49 employees

The procedures are different when the company has an ESC or not.

With CSE

When there is a ESC: titleContent in the company, the employer has 2 possibilities to negotiate a collective performance agreement.

1st possibility: Negotiation with one or more ESC members

The employer may negotiate and conclude an agreement with one or more members of the ESC: titleContent.

The agreement is validated if signed by ESC members representing more than 50% of the votes cast on 1er round of the last elections of the CSE holders.

2nd possibility: Negotiation with an employee mandated by a trade union organization

The employer may negotiate and conclude an agreement with one or more employees authorized representatives by one or more representative trade union organizations.

The trade union organization(s) must be representative in the sector.

In the absence of representative trade union organizations in the sector, trade union organizations must be representative at national and inter-branch level.

Same union organization may mandate only one employee.

In this case, the company's employees must be consulted by referendum.

The agreement is validated if more than 50% votes cast by employees.

Non-Stop

The employer may negotiate and conclude an agreement with one or more employees authorized representatives by one or more representative trade union organizations.

The trade union organization(s) must be representative in the sector.

In the absence of representative trade union organizations in the sector, trade union organizations must be representative at national and inter-branch level.

Same union organization may mandate only one employee.

In this case, the company's employees must be consulted by referendum.

The agreement is validated if more than 50% votes cast by employees.

Company of 50 or more employees

The employer must follow the following procedure.

Priority 1

The employer may negotiate and conclude an agreement with one or more members holding the ESC: titleContent authorized representatives by one or more representative trade union organizations.

The trade union organization(s) must be representative in the sector.

In the absence of representative trade union organizations in the sector, trade union organizations must be representative at national and inter-branch level.

Same union organization may mandate only one employee.

In this case, the company's employees must be consulted by referendum.

The agreement is validated if more than 50% votes cast by employees.

Priority 2

In the absence of full members of the ESC: titleContent authorized representatives by a trade union organization, the employer may negotiate and conclude an agreement with one or more members holding the ESC no authorized representatives.

The agreement is validated if signed by ESC members representing more than 50% of the votes cast on 1er round of the last elections of the CSE holders.

Priority 3

In the absence of an elected representative wishing to negotiate an agreement, the employer may negotiate and conclude an agreement with one or more employees authorized representatives by one or more representative trade union organizations.

The trade union organization(s) must be representative in the sector.

In the absence of representative trade union organizations in the sector, trade union organizations must be representative at national and inter-branch level.

Same union organization may mandate only one employee.

In this case, the company's employees must be consulted by referendum.

The agreement is validated if more than 50% votes cast by employees.

Please note

In companies 50 or more employees, the CSE may appoint an accountant to provide any useful analysis to the trade unions in preparation for the negotiation of the collective performance agreement.

There is no mandatory clause in a collective performance agreement.

The agreement duty however define in its preamble its objectives. It may specify the following:

  • Conditions under which employee managers and agents and shareholders make efforts proportionate to those required of employees (for example, a reduction in the remuneration of employee managers and/or a reduction in dividends paid to shareholders)
  • The way in which the work, personal and family life of employees is reconciled
  • Support for employees by offering them, for example, training courses, and the possibility of paying sums on the personal training account (PTA) above the minimum amount
  • Means of informing employees about its application and monitoring throughout its duration
  • Examination of the situation of employees at the end of the agreement.

The collective performance agreement must be deposited on the digital platform TeleAgreements :

TeleAgreements - Collective company Agreement Filing Service

The employer shall inform each employee of the existence and content of this agreement.

He shall also inform the employee of the possibility to accept or refuse the application of this agreement.

This information is provided by any means conferring a certain and precise date (registered letter with request for notice of receipt, letter delivered in person against signature, for example).

The employee has 1 month to publicize its refusal in writing to the employer.

In the absence of refusal notified within that period of 1 month, in writing, the agreement shall apply to the employee.

When the employee accept, the collective performance agreement shall replace automatically the contrary and incompatible clauses provided for in the employee's employment contract. In this case, the employer shall not draw up an amendment to the contract of employment.

Example :

In the employment contract of the employee, a clause provides for the payment of overtime plus 25%. The collective performance agreement may reduce the overtime increment rate to 10%. If the employee agrees to the application of this agreement, overtime will be increased to 10%.

When the employee refuse the application of the collective performance agreement, thus the modification of his contract of employment, the employer can fire him. In this case, the reason for dismissal is based on a specific reason that represents a real and serious cause.

The employee is not dismissed for economic reasons.

The employer must hire the dismissal for personal reasons within two months of the employee's refusal.

The employer must ask the labor inspector for permission to dismiss a protected employee.

FYI  

The refusal of the employee does not lead to a break-up automatic the employment contract. The employer may also decide not to dismiss the employee. The contract of employment shall normally continue without applying the collective performance agreement.

Severance pay

The employee receives a severance pay if he fulfills the conditions to benefit from it.

Notice Allowance

The employee must normally give notice. It may be dispensed with.

Compensation for this notice differs depending on whether the employee makes the notice, the employer waives the employee's obligation to do so, or the employee requests to be exempted.

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The employee gives notice

The employee shall be paid an advance payment corresponding to his normal salary.

The employee is exempted from notice by the employer

The employee is not working. The employer pays her a compensatory period of notice corresponding to the salary he would have received if he had worked during that period.

The employee asks the employer not to give notice

If the employer agrees, the employee does not work. He does not receive compensation for notice.

Paid leave allowance

The employee receives a Compensatory leave with pay if he fulfills the conditions to benefit from it.

Personal Training Account (PTA) Abundance

The employee shall receive a payment of minimum amount of €3,000, by the employer, on their personal training account (PTA).

Yes, the employee receives a return-to-work assistance (RWA) if he fulfills the conditions to benefit from it.

The employee may contest the conditions of validity or application of the PCA. He may also challenge his dismissal when he has refused to apply the PCA.

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The employee wishes to challenge the conditions of validity and application of the PCA

The challenge may relate to the validity of the agreement (subject matter and content of the agreement, quality and representativeness of the negotiators of the agreement, need for a written statement, completion of notification formalities and publicity).

The employee must to bring proceedings before the court of justice within 2 months.

The employee wishes to challenge his dismissal

The employee may contest his dismissal if the employer has not respected the procedural rules of the PCA (1 month period to express his refusal; 2 months period to initiate the dismissal procedure).

Dismissal may also be challenged if the rules of protection have not been respected ( dismissal of a pregnant employee for example).

The employee must to refer the matter to the labor council.

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