A collective labour agreement is a written agreement covering aspects of working conditions, such as wages, bonuses, payment of overtime, working hours, trial periods, notice periods or pensions. Matters such as schooling, child care and early retirement may also be covered. Collective labour agreements are concluded between one or more employers, one or more employer organisations and one or more employee organisations (usually trade unions).
Collective labour agreement provisions are often more favourable than statutory provisions. Wage levels in collective labour agreements are frequently higher than the minimum wage, and the number of holidays agreed is often greater than the legal minimum. However, the agreements may never violate the law, such as the Civil Code or the Minimum Wage and Holiday Allowance Act. Collective labour agreements may not contain provisions that sanction wage levels below the legal minimum or fewer holidays than the number stated in the Civil Code.

Collective labour agreements (CA) can cover entire industries or just individual companies. The agreements always state which employers, sectors or types of work fall within its scope.

Sector-based agreements
Sector-based agreements are collective agreements that apply to an industry or sector. They are concluded between one or more employers or employer organisations and one or more employee organisations.

Company-based collective labour agreements
These are collective agreements that apply to one single company. They are concluded between the employer and one or more employee organisations.

Collective labour agreements must be registered at the Ministry of Social Affairs and Employment.

The parties that have concluded a collective labour agreement may apply for it to be extended to the entire sector. Employers who do not belong to any of the parties in the agreement must then also comply. Requests to extend collective labour agreements must be submitted to the Ministry of Social Affairs and Employment.

An English version of the Collective Agreements is available.
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