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Collective Agreements

Collective agreement is a written agreement between the employer and employees providing more beneficiary conditions for the employees than provided in Labour Law and other legislative documents regulating the legal labour relationships. The conditions of the collective agreement must not worsen the legal state of the employees.

Making the collective agreement can be initiated by the employer, the employees' representatives or organizations. For this purpose, the parties organize discussions during which they agree on the procedure of developing and discussing the draft agreement. The suggestion for the draft agreement can be submitted in written by any employee.

The collective agreement shall be approved at the general meeting of the employees with at least a half of the employees of the enterprise present. The collective agreement is made between the employer and the trade union or the authorized employees' representatives. It is concluded for indefinite period or for the period of performing a particular work. The collective agreement comes into force on the day of its signing and is in force for one year unless stated otherwise therein.

The collective agreement may be terminated early based on the agreement of parties or on the notice of one party if provided therein.

The obligations set in the collective agreement are binding for the employer and all the employees. The duties of the employer include informing the employees with the collective agreement within 1 month of its signing or amending.

The collective agreement does not substitute the employee's labour contract with the employer!

The collective agreement may:

  • regulate the organization of the remuneration and labour protection, improving the qualification of the employees, work procedure;
  • regulate the payment system and amount of the additional payments, prizes and other remunerations;
  • set the health check procedure;
  • forbid to make labour contracts with other employers;
  • set the duration of the working hours in holidays and pre-holidays;
  • regulate granting the vacation for education and additional vacations;
  • forbid to leave the place of work during the rest break;
  • set a shorter notice and employee's rights to cancel it.

In the case of disagreements, the parties of the collective agreement design a Reconciliation Commission with the equal numbers of the representatives of both parties present. If the disagreement can not be solved in the abovementioned commission then it is solved according to the procedure set in the collective agreement.

The Collective Agreement's Benefits to the Employers:

  • improved relationships between the employees and less labour disagreements;
  • employer more attractive to the highly professional employees.

The Collective Agreement's Benefits to the Employees:

More beneficial conditions of the legal labour relationships in comparison to the relevant legislation in force.