A collective agreement is a legal contract that lists the terms and conditions of employment between an employer and employee. The collective agreement benefits both parties, so its terms and conditions may be negotiated to suit both parties equally. The goal is a harmonious contract and work environment. Therefore, the objectives of the collective agreement must suit employer and employee alike.
Outline Roles and Responsibilities
Besides creating a legally binding contract, a collective agreement outlines rules and regulations. This can include the rules and expectations about the responsibilities and tasks of the employee. The employee is hired to work on given projects or fulfill a job position and the collective agreement outlines what the employer expects from the employee. One objective of a collective agreement is to establish the roles and responsibilities of each signing party.
Avoid Disagreements
Another objective for writing a collective agreement is to prevent disagreement throughout the period of employment. A collective agreement may need to be negotiated by the two parties to reach conclusions that are beneficial to both. If both parties are satisfied with the terms and conditions within the agreement, disputes are less likely to surface during the period of employment.
Establish Payment
The negotiated salary and additional benefits are also included in a collective agreement. This information is included, so both parties know what is expected in terms of financial compensation for the work performed. One objective might be to outline the financial information to avoid any confusion on payday.The objective can also include presenting the employee with health benefits and commission payments, so he knows what to expect in terms of payment.
Employment Protection
One purpose of a collective agreement is to establish a layer of protection for both parties. For instance, the contract protects the employer as the employee needs to perform the responsibilities outlined in the agreement. Similarly, the employee is protected as the salary requirements and the additional benefits for completing the job are also outlined.
