All You Need to Know About Collective Labour Agreement

All You Need to Know About Collective Labour Agreement
Jakub Chajdas

Jakub Chajdas

Partner / Attorney-at-law

A collective labour agreement sets out the terms and conditions of employment as well as the rights of employees in a company. Find out what it means for employees and employers, and what you need to know about it.

Table of Contents

What Is a Collective Labour Agreement?

A collective labour 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.
Collective Labour Agreement

Who Is Not Covered By a Collective Labour 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 Labour Agreement Regulate?

A collective labour 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 labour 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

Collective Labour Agreement

Procedure For Concluding a Collective Labour Agreement

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

The party that initiates the agreement:must inform all trade unions representing the employees so that everyone can engage in negotiations.
The party authorized to conclude an arrangementcannot refuse to start negotiations: – to include employees who are not yet covered by the agreement, – that amend the arrangement due to a significant change in the economic or financial situation of employers or a deterioration in the financial situation of employees, – if the request was submitted no earlier than 60 days before the end of the period for which the arrangement was concluded or after the date of termination of the arrangement

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 Labour Agreement – Duration

The collective labour 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 Labor Agreement

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

  • multi-establishment collective labour agreements – are registered by the minister responsible for labour affairs,
  • corporate collective labour 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.
Collective Labour Agreement

Deadline for Registering a Collective Labour 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 Labour Agreement – Employer’s Obligations

Once the collective labour 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 Labour Agreement

Labour law gives the parties an option to terminate a collective labour 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 Labor Agreement – Summary

The collective labour 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 Labour Agreement

What is a collective labour agreement?

It is a document that defines the terms and conditions of employment. It specifies the relationship between employees and the employer in a given workplace.

Who can conclude a collective labour agreement?

It can be concluded by an employer and a trade union or other employee representation.

What are the benefits of a collective labour agreement?

It ensures workplace stability, protects workers’ rights, and improves workplace conditions.

Is a collective labour agreement mandatory?

A collective labour agreement is not mandatory, but it can be beneficial for both parties.

How long does a collective labour agreement last?

The duration of the agreement depends on the terms specified in the document. You can sign it for a definite or indefinite period.

Can a collective labour agreement be changed?

Yes, it can be amended with the consent of the parties who concluded it.

What are the key elements of a collective labour agreement?

Key elements include employment conditions, remuneration, vacations, employee rights protection, and procedures for resolving conflicts.

Does a collective labour agreement apply to all employees?

A collective labour agreement applies to workers covered by its provisions. Typically, it concerns those hired based on employment contracts.

What are the consequences of not complying with the collective labour agreement?

Failure to comply with a collective labour agreement can result in legal sanctions. It can also generate conflicts in the workplace.

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