Comparative analysis of the Collective agreement

Aug, 08 2021


A collective agreement is a document regulating business relations in various fields between an employer and an employee. The settlement procedure can take place both through an entrepreneur and through a legal organization. It is also possible otherwise when the contract is concluded between the collective representative and the trade union. An employment contract, unlike a collective one, has its own peculiarity: it is always individual despite the fact that it is based on the principles of collective.

The collective agreement regulates the professional activity of each individual employee, defines warranty cases and requirements for the provision of benefits. Without this legal act, enterprises and organizations have no right to work, and a fine is imposed on the head for this.

The Labor Code of the Russian Federation defines such a normative legal act as an agreement as a document that establishes the general principles of forming socio-economic relations between an employee and an employer or their representatives at the intersectoral level of social partnership.

Content of the agreement

The contract pages must include the following aspects:

  • The system of calculating wages.
  • Additional bonuses and rewards.
  • Conditions of employment, dismissal.
  • Conditions for providing rest.
  • Restriction in working hours.
  • Provision of medical insurance and other health protection for employees.

If it is necessary to combine work with training, the conditions are also prescribed in the document. Compliance with the interests of the employee and the company’s management is also taken into account.

The presence of a collective document at the enterprise carries many positive aspects:

  • Remuneration is agreed and ordered.
  • There is a material interest.
  • Social security is guaranteed.

When the company has established the main indicators of bonuses (surcharges, allowances), and there is also a set of social support: provision with medical insurance, an interest-free loan for training, people have an interest in working and developing.

A mutually beneficial contract is when a specialist gets a job with good working conditions, increased social protection, and the management gets protection from personnel leakage.

Parties to the agreement

The period of concluding a collective agreement between representatives of both parties cannot be less than 3 years, it is extended and supplemented with new conditions by general agreement. The executive person and the employer are recognized as participants in the contract.

The contract regulates issues related to the implementation of the organization’s labor activity, and all its points are subject to mandatory implementation.

A collective agreement, expressed in a legal form, reduces the volume of document flow, as it happens when concluding an employment contract. The party of the employer, not being able to hold a conversation and conclude an agreement with each participant of the hiring party, regulates the relations according to the norms of specific regulatory documents. A future employee who has come for employment is sent to the personnel department, where he receives an individual employment contract executed in a standard format and referring to collective norms.

A comparative analysis of the collective agreement and the agreement allows you to find similarities and highlight differences.

Along with the collective agreement, there is an agreement that differs in that it regulates economic and social relations with the participation of a representative of the state level, since there is funding from the state budget to fulfill the obligations of the employer.

Each branch of production has its own conditions of socio-economic relations, which are regulated from above and are mandatory. A significant difference between the agreement and the collective agreement is that the signing of the clauses of the agreement is a prerequisite. And an agreement is a regulatory act that regulates relations in the social sphere, between industries, professions or territories. Financial resources are allocated to support industrial production and compliance with the requirements that are prescribed and strictly regulated.

Registration of collective agreements

The procedure for preparing documents is carried out by approving the text by two parties: the employer and the representative from the team. An authorized representative from the state body is necessarily present at the negotiations to resolve all issues related to the signing process.

An important point that can be noted as a mandatory point of implementation after signing is the procedure in the relevant body or its department, the registration procedure. It must be carried out within 1 calendar week from the date of signing the contract or signing the agreement.

The obligations of the parties on such basic issues as remuneration, work and rest regime, additional pension insurance, admission, dismissal, bonuses, benefits, compensation are mutually necessary.

Contractual relations in social partnership

The agreements can be as follows:

  • Territorial-benefits for certain employees: remuneration, guarantees, compensation, on the territory of the relevant municipality.
  • Industry-benefits for employees of a specific industry, for socially oriented protection.
  • Regional — the subjects of the Russian Federation participate.
  • Interregional — two or more subjects of the Russian Federation.
  • General-general principles at the federal level for all industries.

The signing of a collective agreement is a prerequisite for both parties. It makes no sense to violate this mutually beneficial legal act, which is agreed and signed by both parties. This excludes labor disputes at the judicial level, conflicts and strikes.

With mutual agreement on the main economic and social issues, lawsuits are completely excluded, since approval and approval takes place with the participation of both interested parties.

Author of the article
Comparative analysis of the Collective agreement
Valentina Khlavich
Managing Partner
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