Employment contracts are agreements formed between the employer and employee that cover employment conditions and employee rights, responsibilities, and duties. In addition to these agreements, the employer may also have an agreement with employee representatives like trade unions or staff associations. These are called collective agreements.

Collective agreements facilitate negotiations of terms and conditions like pay or working hours and an agreement may include how negotiations will be organised, who will represent employees, which employees the agreement covers, and the terms and conditions covered by the agreement.

Many employers will have a contract dispute lawyers draw up a collective agreement that takes into consideration the conditions put forth by employee representatives. While employee representatives strive to ensure the demands of employees are met, an employer will look at how these demands will affect the business, profit, and expansion.

The terms of a collective agreement will thus take into account the demands and requirements of both parties, which is why collective agreements are of great importance.

Employees

There are a number of ways in which a collective agreement can benefit employees and the key benefit is that a collective agreement can improve the working and living conditions of workers, which is also one of the main goals of employee representatives like trade unions.

Before signing a collective agreement prepared by a law firm UK, employee representatives will carefully go through the document to ensure employee working conditions agreed upon are satisfactory and align with what the unions have requested.

This will include things like wages, benefits, and working hours. An employment contract lawyer may also include conditions on the equal treatment of all employees. In addition to this, depending on the industry and type of work, a collective agreement will look at safety and occupational health.

Employers

An employer must also benefit from a collective agreement and will seek legal advice UK to ensure the agreement meets employee demands while also benefiting them. One of the main reasons an employer will opt for a collective agreement is that it can reduce the need for strikes and similar action that could disrupt the efficiency and productivity of the company.

The reason that a collective agreement can reduce the need for strikes is because it can establish a mechanism to resolve disputes by providing employers with a negotiating partner. This negotiating partner is an authoritative and representative partner of the employer and it is believed that establishing such a mechanism for carrying out negotiations can reduce union action within a company.

A solicitor UK may also advice an employer to come into a collective agreement with employee representatives because it facilitates a positive work environment where employee rights are recognised and considered by the employer. This can boost efficiency and productivity as well as morale.

While there are thus benefits to both parties of the collective agreement, it is also important to look at some of the pros and cons of a collective agreement.

Collective agreements represent each employee and encourages the formation of relationships. Consistency in the work place is also an advantage to collective agreements and they also improve the work conditions of all workers. Negotiations, which the agreement facilitates, also encourage cooperation from all parties.

All of these enhance efficiency and productivity of a company which leads to growth and expansion.

On the other hand, collective agreements do not guarantee positive results, especially if the employment contract lawyer does not include terms and conditions about specific areas like employee productivity.

It can also be used as a political tool and many companies discourage the formation of unions. Fair representation may also not always be part of the negotiation process and it can cause uneasiness and tension in the workplace.

There are thus advantages and disadvantages to collective agreements but legal advice UK may recommend it for a company as it benefits both the employer and the employee and many of the disadvantages to the agreement can be solved through proper representation and communication, which a solicitor UK can facilitate.

Published date - May 27, 2020