What Is The Term Collective Agreement

If, during the negotiations, the parties fail to reach an agreement for reasons beyond their wishes, a minutes are drawn up, with final proposals from the parties on the appropriate measures for establishing these grounds, as well as the date of the resumption of negotiations. Continuity of the Effects of Collective Agreements The normative effect of collective agreements means that their provisions automatically replace provisions in individual employment contracts that are less favourable to workers (Article 14 of the Employment Contracts Act). The content of a new agreement may deteriorate more favourable conditions if these conditions have been included in individual contracts resulting from a previous agreement, replaced by the new agreement (which is now applicable and introduced), provided that the new agreement contains a clause expressly stipulating that it is generally more favourable to workers (i.e. the “pejus derogation” under Article 15 of the Act). The provisions of collective agreements are therefore not a substitute for the provisions of certain contracts if they have been agreed directly between the parties to the individual contract and are more favourable to the worker. In other words, the acquired rights of workers on better terms of employment should not, in principle, be affected by a collective agreement, unless they were acquired on the basis of an earlier agreement, which was replaced by a subsequent agreement that dissolved it and which expressly contained a general clause of greater favour. If this is the case, the “conglobao” principle chosen by law as a criterion of greater ease means that one or the other particular aspect of the general conditions of employees can be aggravated (a situation characterized as infringement of acquired rights by derogation from a previous agreement). In the same article, the law also excludes the possibility of abolishing compulsory legislation or abolishing a certain type of supplementary social benefits.

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