Collective agreement

Labor legislation is not able to regulate the entire diverse palette of relationships between the employer and employees that arise in the company. Here, a collective agreement comes to the rescue, which can be concluded between the employer and the labor collective in any legal entity that uses hired labor.

The collective agreement is an agreement concluded between the employer and the labor collective (trade union) and regulating their production, labor and socio-economic relations. It has a special conclusion procedure, which requires the initiative of at least one of the parties – the employer or the trade union, and is of term nature. The collective agreement applies to the employer and all employees of the company. The terms of such an agreement develop and specify other internal documents and cannot worsen the position of employees in comparison with the current legislation.

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The conclusion of a collective agreement is a rational step for both employees and the employer, which helps to reduce the risks of conflicts, regulate labor relations in a quality manner and can be useful in resolving labor disputes. What else is beneficial for the company to conclude such an agreement?

  1. This is one of the guarantees of stable relations between the employer and employees, the basis for creating an appropriate regime and working conditions: the conclusion of a quality contract reduces the risk of labor disputes and forms clear mutual obligations of the parties.
  2. The document includes the provisions for meeting legal requirements that are defined as mandatory for settlement in the company, which eliminates the need to streamline these issues by many separate internal documents.
  3. The collective agreement allows you to determine a special work schedule, the procedure for granting leaves, helps, if necessary, to prove the legality of including material assistance in gross expenses, arrange an employee’s leave at his or her own expense, provide additional leave for an irregular working day.
  4. This is a tool for a clear regulation of the remuneration system, increasing the motivation of employees by providing additional guarantees, material support, social benefits, etc.

The collective agreement is subject to notification registration by area, district in Kiev and Sevastopol cities state administrations, executive bodies of village, settlement and city councils.

If it is not possible to develop a collective agreement on your own, the legal assistance of VigoLex professionals will come in handy. When developing a collective agreement, lawyers will competently and clearly formulate contractual provisions, taking into account the legal nuances of concluding this agreement and the specifics of the company activities.

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