Collective bargaining agreement

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Negotiations for the conclusion of a collective bargaining agreement

The collective bargaining agreement is entered into between one or more employers and one or more unions, and applies to all employees of that employer, whether or not they are union members. It is valid only in writing and must be filed within 15 days. Any provision of an individual contract that is less favorable than the collective one is invalid and is replaced by the collective contract.

This page shows who can terminate it, how the procedure is initiated, what effects it has on individual contracts, and how it is resolved or modified.

Read also: Workplace Conflicts and Defense: The Complete Guide

Who negotiates the collective bargaining agreement and where is it enforced?

Article 160 defines the parties. On one side is one or more employers or employer organizations; on the other side is one or more trade unions.

ElementRuleArticle
LevelAt the enterprise or branch level, as agreed by the parties.161, point 2
Who is connected?Any signatory employer or member of the contracting organization162, point 1
Who is it applied to?All employees, whether union members or not.162, point 1
Resignation from the organizationThe employer remains bound until completion, for no more than three years.162, point 2
Transfer of the enterpriseThe contract applies equally to the new recipient.162, point 3

The most important practical point is the second one. The collective bargaining agreement does not apply only to union members. It applies to all of that employer's employees.

Note: Article 162, paragraph 4, allows, by order of the minister, the effects of the collective bargaining agreement to be extended to all employers in the sector when the bound employers employ at least half of the workers in that sector. Thus, a business can be bound even without having signed it itself.

How to negotiate a collective bargaining agreement, step by step

The request comes from the union and follows a series of short deadlines.

Step 1. Written request for the initiation of negotiations, accompanied by the statute and the proofs of representation, pursuant to Article 163, paragraph 3.

Step 2. The employer posts the request conspicuously throughout the enterprise for two weeks, in accordance with Article 163, paragraph 4.

Step 3. If the representation is challenged, it is substantiated by notarial certification and, as appropriate, reviewed by the conciliation office under Article 164.

Step 4. The employer must notify the requesting party within two weeks of the end of the posting or of the final determination of representativeness, in accordance with Article 165, paragraph 1.

Step 5. If the negotiations do not conclude within 30 days, a strike may not be used without first engaging the mediator and the conciliation office, in accordance with Article 165, paragraph 2.

The posting requirement is not a mere formality. Article 163(6) renders the first collective agreement void if it is concluded without proper posting, and a second agreement is then concluded in accordance with the procedure.

During negotiations, the unions have the right to request information on all relevant matters, and it must be provided within one calendar week.

Read also: Conflict resolution and its deadlines

Form and filing of the collective bargaining agreement

Article 166 makes form a condition of validity. The collective agreement is valid only in writing and must be signed by all parties. It may be terminated or amended only in writing.

Article 167 provides for deposit. The original is deposited within 15 days of the conclusion of the agreement with the regional employment office at the enterprise level, or with the ministry responsible for labor at the branch level and for enterprises operating in more than one region.

Paragraph 2 of Article 167 clarifies a common misunderstanding. Depositing is not a condition for the validity of the collective agreement.

Effect on individual contracts

This is the clause that makes the collective bargaining agreement accessible to every employee.

Article 171, paragraph 1, states that the provisions of the collective bargaining agreement relating to working conditions directly govern the individual contracts entered into by that employer.

Point 2 goes further. Any provision of the individual contract that is less favorable to the employee than that of the collective agreement is invalid and is replaced by it.

When two collective agreements are applied within the same enterprise—one at the enterprise level and the other at the sector level—any employee may request the application of the most favorable provision, pursuant to Article 174, paragraph 1.

Read also: Mandatory elements of the individual contract

What does the collective bargaining agreement usually cover?

The code does not provide a mandatory list of contents, but refers to it in several articles, and from these its natural scope emerges.

  • The duration of annual leave, according to Article 92, paragraph 1.
  • The maximum number of overtime hours and the method of compensating them, pursuant to Articles 90 and 91.
  • The amount and method of compensation for work on weekly rest days and public holidays, in accordance with Article 87, paragraph 5.
  • Disciplinary measures, which are primarily provided for in the collective agreement, pursuant to Article 37.
  • Exemptions for weekly rest and work on holidays, pursuant to Articles 85 and 86.
  • Fines, which are only permitted when provided for in the collective agreement, pursuant to Article 122, paragraph 3.
  • The procedure for resolving disputes, pursuant to Article 195.

In any case, it can only give more than Kodi, never less.

Read also: Payroll withholdings and their limits

When the collective contract provides more than the Code, it becomes the basis for calculating mandatory supplements and the days that are marked at Vacation register.

How long does the collective bargaining agreement last and how is it resolved?

Article 173 divides it into two cases, with the same notice period.

CaseRule
Unlimited durationEither party may terminate it, with six months' notice.
Duration over three yearsIt terminates after three years, with a six-month notice period.
Some pairsThe solution to one leaves the agreement between the others in effect.
Change of circumstancesThe interested party may apply to the court for an early resolution.

After termination, Article 175(2) retains a significant effect. Each individual contract within its scope remains governed by the provisions of the collective agreement, unless it is modified by agreement between the parties or terminated by them.

When the collective contract is violated

Article 170 provides a direct remedy. When the contract is breached by one party, the other party may turn to the court, or to the arbitration tribunal if provided for in the collective agreement itself.

The court orders the at-fault party to compensate for the damage caused. Article 172 completes this by recognizing the competent court for any individual or collective dispute regarding the enforcement of the collective agreement.

The obligation to maintain the status quo of the workplace is not implied. It applies only when the parties have expressly agreed in writing, pursuant to Article 169, paragraph 2.

The mistakes we see in the collective contract

  • It is believed that it applies only to union members.
  • The request for negotiations is not posted, which could render the first contract invalid.
  • The original is not deposited with the appropriate institution within 15 days.
  • The individual contract contains less favorable terms than the collective ones, which are invalid.
  • Changes are made by verbal agreement, although a written form is required.
  • The six-month notice period for termination is not taken into account.
  • It is believed that once the solution is reached, all effects cease immediately, while individual contracts continue to be governed by it.

Collective bargaining agreement, frequently asked questions

Who is the collective bargaining agreement applicable to?

All employees of the affiliated employer, whether or not members of the contracting trade union, pursuant to Article 162, paragraph 1.

Is a written form required?

Yes. Article 166 makes it a condition of validity for both the creation and any amendment or termination of it.

How long does it take for the deposit to be processed?

Within 15 days of the agreement's conclusion, to the regional employment office or to the ministry responsible for labor, depending on the level.

Is the deposit a condition of validity?

No. Article 167, paragraph 2, states it explicitly.

What happens when an individual contract conflicts with a collective one?

Any provision less favorable to the employee is void and is replaced by that of the collective agreement, pursuant to Article 171(2).

What is the notice period for its termination?

Six months, for both the open-ended contract and the one-year contract, pursuant to Article 173.

Can a business be connected without signing?

Yes. By order of the minister, the effects may extend to all employers in the branch when the affiliated ones employ at least half of the branch's employees.

Who resolves disputes over its implementation?

The court, or the arbitration tribunal when it is provided for in the collective agreement itself, pursuant to Articles 170 and 172.

Legal basis

Many businesses only learn what the branch collective agreement contains when an employee asserts a right they weren't aware of, because it applies even if they haven't signed it. As outside economists, we verify which collective bargaining agreement applies to you and adjust your individual contracts so they remain no less favorable, as part of your monthly subscription.

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