A collective agreement determines the minimum terms and conditions of employment, less favourable than which cannot be applied to an employee. This is a good opportunity for employees to jointly agree on wages, working hours and other working conditions. Together, it is more effective to stand up for one's interests.
Conclusion of a collective agreement
A trade union has the right to conduct collective bargaining. If there is no trade union at the workplace, a representative of the employees can also conduct negotiations. Collective agreements can be concluded at company, sector or national level. For example, sector-specific agreements have been concluded in the fields of transport and healthcare.
At the national level, the minimum wage is set annually by government regulation. It is previously agreed upon in the collective agreement of the Estonian Employers' Confederation and the Estonian Trade Union Confederation.
To start negotiations, the interested party shall make a written proposal to the other party and shall also submit a draft contract. The employer shall commence negotiations within seven days of receiving the proposal. In order to participate in the negotiations, employee representatives shall be released from their main job by agreement of the parties and their average salary shall be retained for the time being.
Only trade unions can conclude collective agreements at sectoral and national levels.
Scope of the collective agreement
A collective agreement concluded in a company applies to the members of that organization's trade union and usually extends to all employees, based on the requirement of equal treatment of employees. The agreement usually stipulates the length of working and rest periods, the amount of salary, etc.
A sector-specific collective agreement extends to all employees in the relevant field of activity, regardless of whether the employees belong to a trade union or whether the employers belong to an employers' association.
Entry into force, validity and termination of the collective agreement
A collective agreement enters into force on the day it is signed or on a date agreed upon by the parties. If necessary, different terms of the agreement may enter into force at different times, for example, a salary increase may be retroactive.
A collective agreement is usually concluded for one year, and this applies even if the parties have not separately agreed on the duration of the agreement. A duration that is too long may not be reasonable, as some terms – for example, agreements regarding remuneration – need to be reviewed regularly. However, the parties may agree on a longer duration if they wish.
A collective agreement shall terminate upon the conclusion of a new agreement with the same content. If a new agreement is not concluded upon the expiration of the term of the agreement, the parties must continue to comply with the terms of the previous collective agreement. Except for compliance with the labor peace.
Notification of collective agreement
The trade union representative informs the employees about the conclusion of a collective agreement. If there is no trade union at the workplace, this is done by the employee representative.
The employer is obliged to introduce the current collective agreement to all new employees. When a new collective agreement is concluded, all employees must be informed of its content. The text of the collective agreement must always be available to employees so that everyone can familiarize themselves with their rights and the agreed working conditions.
Collective agreements concluded by various trade unions and their federations can usually be found on their websites. For the most accurate information about the collective agreement in your company or institution, you can ask your trade union representative.
The Collective Agreement Act it is possible to get acquainted Riigi Teatajas.
