What is a collective agreement

The collective agreement is a written agreement between the administration of the enterprise (individual entrepreneur) and employees, and designed to regulate labor relations between them. The collective agreement applies to all employees of the enterprise and its structural divisions (branches, representative offices).

The collective agreement is signed by authorized representatives of the company and its employees. After its conclusion, a collective contract within seven days is subject to a notifying registration in the relevant labor authority.

The collective agreement provides terms relating to compensation arrangements and bonuses, guarantees and compensations, working time and rest time, labor safety, training workers, etc. Some categories of workers the collective agreement can be set of benefits and privileges not stipulated by the current legislation.

What is term of a collective agreement

For the collective agreement period of validity is stipulated in its text. A collective agreement may enter into force as from the date of signing, and a specific date agreed to by the parties. By law, the validity of the collective agreement cannot exceed 3 years. After its expiration, the parties may conclude a new collective agreement or to prolong valid for a maximum of 3 years. Then, you still have to sign a new collective agreement.

The change of name of the company, its transformation and change of Manager will not affect the validity of the collective agreement. However, a special procedure of the collective agreement exists in case of change of owner of the enterprise, and reorganization and liquidation. So, if the company has changed the owner, the old collective agreement continues to operate for another 3 months. With the reorganization of the company (excluding conversion) of the collective agreement is valid until the end of the procedure. After that, the parties are entitled to conclude a new collective agreement or renew the old one. In the event of termination of activity of the enterprise, the collective agreement continues to operate throughout the period of its liquidation.