What Is Collective Agreement? | HR Glossary | BambooHR
A negotiated agreement between an employer and a trade union setting terms for a group of employees.
A collective agreement is the outcome of negotiation between an employer (or employers' body) and a trade union representing employees. It typically covers pay, hours, working conditions and dispute procedures for a defined group.
Such agreements bring predictability and a structured voice for employees, and they can reduce the risk of individual disputes by setting shared standards.
Employers with recognised unions must understand which terms are incorporated into individual contracts and how changes are properly negotiated.
