A collective agreement is a binding contract between an employer and a group of their employees, typically a union. This agreement is developed through negotiations and outlines the terms and conditions of employment for the employees covered by the contract.
A collective agreement usually includes provisions related to wages, benefits, working conditions, and job security. It may also address issues such as grievance procedures, layoff procedures, and disciplinary actions.
The collective agreement is an important legal document that serves as a guide for the relationship between the employer and their employees. All employees who are covered by the agreement are bound by its terms, and the employer is obligated to adhere to its provisions.
In most cases, the collective agreement is negotiated by a union on behalf of the employees. The union will typically represent the employees in collective bargaining negotiations and will work to negotiate fair and equitable terms on their behalf.
Once the collective agreement has been negotiated and ratified by both parties, it becomes a legally binding contract. This means that both the employer and the employees are obligated to abide by its terms for the duration of the agreement.
In some cases, the collective agreement may also include provisions related to dispute resolution. This may include procedures for resolving disputes between the employer and the employees or between the union and the employer.
Overall, the collective agreement is a critical component of the employment relationship between an employer and their employees. By outlining the terms and conditions of employment, it helps to ensure that both parties understand their rights and obligations, and that the relationship is based on a firm foundation of mutual respect and understanding.