Collective agreement refers to a legal agreement made between an employer or group of employers and a union or group of unions representing employees. This agreement outlines the terms and conditions of employment for workers and is binding for both parties.

Collective agreements typically cover a range of workplace issues, including wages, benefits, working hours, leave entitlements, job security, and grievance procedures. The agreement is negotiated through collective bargaining, which involves a process of negotiation between the employer and the union.

The negotiation process typically begins with a proposal from one party, followed by counter-proposals and discussions. The parties may also enlist the help of a mediator or arbitrator to help resolve any disputes and to finalize the terms of the agreement.

Once the agreement is reached, it is typically ratified by the union’s members and the employer’s management. The agreement is then put into effect, and both parties are bound by its terms for the duration of the agreement.

Collective agreements are important as they provide a framework for fair and consistent treatment of employees, as well as ensuring the stability of the workplace. They also help to prevent labor disputes and can improve employee morale and productivity.

There are various types of collective agreements, including sectoral agreements that cover specific industries, company agreements that apply only to workers in a particular company, and national agreements that cover workers across an entire country.

In conclusion, collective agreements are key legal agreements between employers and employees that outline the terms and conditions of employment. These agreements are reached through collective bargaining and are binding on both parties. They help to ensure fair and consistent treatment of employees, prevent labor disputes, and improve employee morale and productivity.