A collective agreement is not just a formality between the employer and employees, but an important tool that determines the working climate in the company. Its content determines how balanced the rights, guarantees, and obligations of the parties will be. How to conclude a collective agreement, so that it actually works – read below.
Main aspects of the collective agreement
A collective agreement is the basis of social partnership between an employee and an employer. It helps to balance the interests of each party, create predictable working conditions and ensure mutual responsibility. A properly concluded agreement is the key to the stability and development of labor relations.
The content of the collective agreement is determined by the parties within their competence, in particular, it may contain provisions on:
- rationing and remuneration of labor, establishment of forms, systems, amounts of wages and other types of labor payments (supplements, allowances, bonuses, etc.);
- work schedule, duration of working hours and rest;
- working conditions and safety;
- changes in the organization of production and labor;
- ensuring productive employment;
- establishing guarantees, compensations, benefits;
- participation of the labor collective in the formation, distribution and use of profits of an enterprise, institution, organization (if provided for by the charter);
- providing housing, cultural, medical services, organizing health improvement and recreation for employees;
- guarantees for the activities of trade unions or other representative organizations of employees, etc.
Conclusion algorithm
The conclusion of the collective agreement is preceded by collective negotiations. After the parties agree on all essential terms of the agreement, it is signed. In addition, collective agreements are subject to notification and registration by local executive authorities or local self-government bodies. The terms of the collective agreement that worsen the position of employees compared to current legislation and agreements are invalid.
Duration of validity
A collective agreement shall enter into force on the date of its signing by the representatives of the parties or on the date specified therein. After the expiration of its validity period, it shall continue to be valid until the parties conclude a new one or revise the existing one, unless otherwise provided for in the agreement itself. The document shall also remain valid in the event of a change in the composition, structure, name of the employer on whose behalf it was concluded and in the event of the entire period of liquidation of the enterprise, institution, organization, or closure of separate divisions of a legal entity.
In the event of a change of owner or reorganization of a legal entity (separate subdivision of a legal entity), the terms of the collective agreement shall be valid for the period for which it was concluded, but not more than one year, unless the parties have agreed otherwise. At a newly established enterprise, the collective agreement shall be concluded at the initiative of one of the parties.
Contract implementation control
The control over the implementation of the collective agreement is carried out directly by the parties that concluded it. If the employer has violated the terms of the collective agreement, the trade unions that concluded it have the right to send the employer a submission on the elimination of these violations, which is considered within a week. In case of refusal to eliminate the violation or failure to reach an agreement within the specified period, the trade unions have the right to appeal the unlawful actions or inaction of officials to the court. The parties that signed the agreement report on its implementation annually within the terms provided for by it.
