What Is a Collective Bargaining Agreement?

A collective bargaining agreement (or collective labour agreement) is a document that defines the terms and conditions of employment and the relationship of employees with their employer. How to conclude it? Who is not covered by it? How long is it valid? We answer these and a number of other questions below.

What Is a Collective Labour Agreement?

A collective agreement is an arrangement concluded between:

• employer or group of employers,
• and a trade union employee representation.

It is concluded for all employees covered by the provisions of the collective labour agreement unless specified otherwise. The agreement may also include pensioners and disability pensioners.

The Labour Code distinguishes two types of collective labour agreements:

• corporate collective labour agreements, made between an employer and a workplace trade union,
• multi-establishment collective labour agreements, made between trade unions and employers’ organizations.

Who Is Not Covered By a Collective Bargaining Agreement?

Labour law specifies a list of individuals who are not covered by a collective labour agreement. These include:

• Members of the civil service,
• State employees and local government employees hired by nomination, appointment, or election,
• Judges,
• Court assessors,
• Prosecutors.

What Does the Collective Bargaining Agreement Regulate?

A collective bargaining agreement specifies:

• The conditions that should be met in the employment relationship, with statutory exceptions,
• The obligations of both parties, including the application of the agreement and following its provisions.

The parties may agree that the collective bargaining agreement will cover other issues not regulated by labour law. However, it cannot violate the rights of third parties.

The provisions of the agreement are jointly interpreted by both parties. The developed content is binding

Procedure For Concluding a Collective Bargaining Agreement

A collective bargaining agreement is concluded through negotiations. Here’s what the procedure looks like:

The Law indicates that each party must start negotiations:

• in good faith,
• with respect for the legitimate interests of the other party.

Participation in the negotiation process requires proper preparation. It is advisable to seek the help of experts and contact a law firm that offers labour law services.

Collective Bargaining Agreement – Duration

The collective bargaining agreement is made in writing for a:

• Indefinite period,
• Definite period.

The parties agree on its scope and indicate the addresses of the parties to the agreement.

It is possible to extend the duration of an agreement made for a definite period. You can specify another definite period or consider it as an indefinite agreement.

Registration of a Collective Bargaining Agreement

A collective bargaining agreement must be reported to the appropriate register:

• multi-establishment collective bargaining agreements – are registered by the minister responsible for labour affairs,
• corporate collective bargaining agreements – are registered by the regional labour inspector.

The agreement comes into effect on the date specified in the document, but no earlier than on the date of registration.

According to the Labor Code, the employer must:

• Notify employees about the entry into force of the agreement, its amendments, termination, and dissolution,
• Provide the trade union organization with copies of the agreement,
• Make the text of the agreement available to employees upon request and explain its contents.

Deadline for Registering a Collective Bargaining Agreement

A legally concluded collective labour agreement must be registered within a specific time. The deadline is:

• 3 months – for multi-establishment collective labour agreements,
• 1 month – for corporate collective labour agreements.

Collective Bargaining Agreement – Employer’s Obligations

Once the collective bargaining agreement comes into effect, the employer must:

• Notify employees about the entry into force of the agreement. This concerns also changes to the agreement, its termination or dissolution.
• Provide the workplace trade union organization with copies of the agreement.
• Make the text of the agreement available to employees upon request. An employer should be also ready to explain its provisions to employees.

Termination of a Collective Bargaining Agreement

Labour law gives the parties an option to terminate a collective bargaining agreement. This can occur:

• based on a joint statement of the parties,
• at the end of the period for which it was concluded,
• after the notice period of 3 calendar months, unless the parties agree otherwise.

Collective Bargaining Agreement – Summary

The collective bargaining agreement regulates employment conditions and relations between employees and employers. It allows workers to benefit from better working conditions and protection of their rights.

If you’re interested in our article, feel free to contact our experts. They will answer all your questions.

FAQ – Collective Bargaining Agreement