Collective bargaining agreements. What are they?

Collective labour agreements are instruments of collective labour regulation concluded between employers and, mainly, trade unions, which regulate the working conditions of employees in those entities.

As collective bargaining agreements (CCT) are, as an instrument of collective regulation, one of the specific sources of law in Labour Law, to which the employment contract is subordinate (Article 1 of the Labour Code – CT).

 

The aim of Collective Bargaining Agreements is to regulate the employment relationship between employers and employees, often through trade unions.

Collective labour agreements have the main objective of stipulating working conditions (salaries, holidays, working hours, etc.).

 

What should Collective Bargaining Agreements contain?

Regarding the content of the collective bargaining agreement, the law lists a set of references and subjects that must be included in it (Article 492(1) of the CT), failing which its deposit at the Ministry of Labour will be refused (which will prevent its publication and entry into force – Article 494 of the CT).

The Collective Labour Agreement must include:

• the designation of the contracting entities,
• The name and quality of their respective representatives,
• Scope and area of application,
• the date of the celebration,
• Identification of the revised convention,
• validity period,
• among others.

Following its registration, the CCT is published in the Official Labour and Employment Gazette and shall enter into force on the date established or, in the absence of express mention, five days after publication (Article 519 of the CT and Article 2 of the Form Law – Law no. 74/98, of 11 November, amended by various subsequent pieces of legislation).

Collective labour regulation instruments are agreements, laws, and regulations that govern the relationship between employers and employees, often negotiated by trade unions or other employee representatives.

Collective labour regulation instruments are used in conjunction with existing laws to regulate employment relationships formalised through contracts, that is, measures aimed at the effective application of the principles of equality and non-discrimination.

Types of collective labour agreements

The following 3 modalities or types of CCT exist (Article 2, paragraph 3 of the CT):

Collective labour agreement

This collective agreement is concluded between employer associations and worker associations. One or more employer associations agree, with one or more trade unions, on the rules to apply to a sector of activity or a profession.

Collective bargaining agreement

This is a collective bargaining agreement that is celebrated between a trade union association and various companies in a sector.

Company agreement

This is an agreement signed between a trade union and an employers' association, therefore it is only valid for one company.

What should be included in the Collective Labour Agreement?

The collective labour agreement (CCT) should be based on the negotiation and definition of the working conditions for a specific professional sector. The main matters generally regulated are:

• Salary;
• Overtime pay;
• Shifts;
• Time bank;
• Insurance;
• Criteria for time and attendance control;
• Training courses according to the needs of the employee and employer;
• Health, safety and hygiene at work regulations;
• Means of resolving conflicts and disputes;
• Under what circumstances and in what way can a strike be called;
• Minimum services, if necessary;
• Rights and responsibilities of the parties;
• Relations between worker and employer representatives, for the monitoring of compliance with the agreement;
• Convention duration.