How long is a collective agreement?

A collective agreement helps ensure order in the company. It takes into account the interests of workers, on the one hand, and the employer, on the other. The article will talk about the fact that a collective agreement is concluded for a period determined by the will of the parties, has certain restrictions, as well as how it is concluded, changed and terminated.

The concept

The regulation of labor relations protects both employees and the employer. All points of interest can be specified in a special local act, that is, a collective agreement. It is concluded for a period stipulated by the parties, which does not conflict with established legal norms, regulates legal relations with all employees at once, and not separately, as in the case of an employment contract. Such cooperation is becoming more fruitful for both sides.

Article 43 of the Labor Code of the Russian Federation

The collective agreement in the organization is concluded for the period stipulated by Article 43 of the Labor Code of the Russian Federation. This article sets out the main provisions regarding the period of validity, extension, and also termination and conclusion of a new agreement.

ILO recommendation

According to the general rules that are provided for by ILO Recommendation No. 91, the following is established:

1. In a collective agreement, participants acting as parties are related to each other. It is not allowed to enter into an employment contract conditions that are contrary to a collective agreement.
2. The provisions of previously concluded agreements that contradict the collective agreement are recognized as invalid and are replaced by the norms of the current collective agreement in an automatic manner.
3. If the agreement provides for more favorable conditions than those indicated in the collective agreement, they continue to be valid if they do not contradict the collective agreement.

Determination of validity by parties

A collective labor contract is concluded for a period determined by the parties. However, it cannot be longer than 3 years. As a rule, a document takes effect on the same day when it is signed. The agreement may also enter into force on another day. Then it is installed directly in the text of the document. Usually, this condition is agreed upon when the collective agreement is concluded for a new term, but during the period of the previous agreement.

Previously, the Law of the Russian Federation “On collective bargaining agreements” was in force. In accordance with it, after the expiration of the established period, he could continue to act until the conclusion of a new agreement. However, at present, according to the provisions of the Labor Code, a collective agreement is concluded for a period specified by the parties, after which it ceases to be valid.

True, the parties may extend its effect. This is done by agreement of the parties as a result of collective bargaining. Moreover, the document can be renewed an unlimited number of times.

Auto Renew: is it possible?

Under the law, the parties have the right to extend the current collective agreement for another three years. Lawyers believe that, in connection with this, it is possible to provide a condition that allows it to roll over automatically. As in the case of the conclusion of the contract, the maximum extension period is three years. It is counted from the moment of its signing. Automatic renewal is possible if both parties have no objection. Silence is regarded as consent to the extension.In this case, the contract must specify the period for which it will be extended (no more than three years). If you specify a period exceeding the maximum possible by law, then an automatic extension is recognized as illegal.

One or more collective bargaining agreements?

In the nineties of the last century, the law allowed the existence of several collective agreements in one company. Each collective agreement was concluded for a maximum period of 3 years, but was valid only for certain employees. As a rule, they were members of various trade unions. Moreover, the agreement did not apply to the entire organization, but only to individuals - members of a particular trade union. In this regard, the very essence of legal regulation at the enterprise was distorted. In addition, if there were different provisions in these contracts, there was a difficulty regarding competition between the contracts. There was also a threat of discrimination of employees on the basis of belonging to a trade union organization, if some agreements were concluded on less favorable terms than others.

As practice shows, the most effective regulator of relations at the company level is a collective agreement in which one of the parties is represented by the entire staff. Moreover, the interests of individual professional groups can be considered in the framework of the annexes to the contract. This is the opposite decision compared to the previously existing norm, in which differentiation of working conditions was observed depending on the membership of employees in trade unions. Now the collective agreement extends its effect to all employees of the company or individual entrepreneur, and in the case of the structural unit - to those employees who are involved in it.

What happens when it expires?

Since the parties themselves are free to choose the subject of the agreement, in the process of collective bargaining, on the one hand, a decision can be made to extend the current document or to amend it. On the other hand, participants can decide to conclude a new collective agreement (concluded for a period of up to 3 years).

Since obligations under this agreement appear directly with the employer, its termination with the management, which has put its signatures, does not affect the corresponding provision. The collective agreement also continues to apply when the company name is changed and the reorganization is in the form of a transformation.

Reorganization and change of ownership

The issue is decided differently when it comes to other types of reorganization, as well as the change of ownership of the company. Then the collective agreement is valid only for a limited period of time, after which it is terminated ahead of schedule.

In case of reorganization by way of merger, merger, spin-off and separation, the agreement continues to be valid throughout the entire period of reorganization. After that, it stops.

In the case of a change in the ownership of the company, the contract is limited to 3 months from the date of transfer of ownership. This moment is recognized by state registration, as stated in Article 223 of the Civil Code. After this, the agreement is terminated.

The limited duration of the agreement when changing the ownership of the company seems controversial, since the new owner, as a rule, receives the company, including all available rights and established obligations. But for some reason this principle does not apply to the rights and obligations of a collective agreement.

At the same time, regardless of condition 8, or for how long a collective agreement is concluded, it will continue to be valid for 3 months, during which the transfer of ownership and negotiations will take place.If from one or the other side there is a proposal to conclude a new agreement or extend the existing one, then after completion of the relevant procedure a new document will be concluded or a prolongation will be made.

The same applies to the situation that occurs during the reorganization. Any party can initiate negotiations to conclude a new agreement or extend the existing one. However, when merging or joining, the extension of the collective agreement will not work. The fact is that in this case we are talking about expanding the scope of the agreement, extending it to employees to whom the provisions of another document had previously been applied, as well as to those to whom the relevant provisions had not been applied at all. Therefore, both during the merger and at the merger, it is advisable to talk about concluding a new contract.

Liquidation of an organization

When liquidating a company, it is also important to understand how long a collective agreement is concluded. In Intuit, for example, he acted during the period of this procedure. By law, the contract is terminated upon complete liquidation. The liquidation of the legal entity ends, and the legal entity ceases to exist after an entry is made in the register. This is stated in Article 64 of the Civil Code of the Russian Federation. All available claims of employees are satisfied in order of priority, in accordance with applicable law. So, wages and benefits are paid in the 2nd turn, and the remaining payments, for example, social and additional compensations, are paid in the 4th turn.

Agreement change

As the agreement of both parties is necessary for the conclusion of the agreement, the same is necessary with regard to the introduction of amendments. In this case, the following procedure should be followed:

1. The party initiating this process shall send in writing to the other party a proposal to initiate negotiations. A project should be attached to it with possible changes, for example, that a collective agreement is concluded for a period.
2. The other party must send a response to the proposal within 7 days.
3. The day after receiving the letter, the negotiations are recognized as open. At the same time, they begin to develop changes.
4. A special commission is formed which resolves collective disputes (if any), and develop proposals taking into account the wishes of both parties.
5. All proposals are considered within 3 months, after which the contract is accepted, approved and takes effect.
6. After the signing procedure, the agreement is sent for registration. This provides the parties with additional guarantees.

Conclusion

According to the provisions of the Labor Code of the Russian Federation, a collective agreement is concluded for a period not exceeding 3 years. By agreement of the parties, it may provide for a shorter period of validity, but not a longer one. After expiration, the agreement can be extended. This is done through negotiation or through automatic extension. A new collective agreement may also be concluded at the initiative of either party. If this is not done, then the current agreement is terminated.