What is a Collective Labor Agreement?

A Collective Labor Agreement (CLA) regulates labor and social relations between employers and employees in a specific organization, sector, or industry. Its main goal is to establish more favorable working conditions and social benefits for workers, exceeding the minimum legal standards.

The Collective Labor Agreement is governed by the Labor Code, which states that a CLA is concluded between:

• Employer (or employer association) and;
• Representatives of employees (trade union or other authorized body).

The CLA is characterized by the fact that it does not regulate the individual labor relations of a specific employee, but establishes general conditions for all workers in the organization or sector. It supplements labor legislation – the conditions agreed in the CLA cannot be less favorable than those stipulated by the laws. On the contrary, they often provide additional rights or benefits.

The CLA is usually concluded for a fixed term, but the parties may agree on a different duration. The agreement applies to all employees in the organization, regardless of whether they are members of the union that signed the agreement.

The CLA covers various aspects of labor and social relations. It most commonly includes: working hours and breaks, ensuring safe and healthy working conditions, remuneration, social benefits (such as additional leave, professional development, compensation and indemnities, and social protection measures).

The initiative for concluding a CLA can come from either the employer or the unions.

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