Advice on collective bargaining law
In many sectors, collective agreements shape working conditions and personnel costs. Whether and to what extent a collective agreement applies depends on memberships, contractual references and extensions by the state. We advise you on the application of existing collective agreements and on collective bargaining policy decisions.
The key points at a glance
Being bound by collective agreements
Under § 3 TVG, the members of the parties to a collective agreement are bound by it, as is an employer who is itself a party to the agreement. Under § 4 Abs. 1 TVG, the legal provisions of the collective agreement apply directly and mandatorily between parties who are both bound. After leaving an employers' association, the employer remains bound until the collective agreement ends.
Continuing effect and general applicability
After a collective agreement expires, its legal provisions continue to apply under § 4 Abs. 5 TVG until they are replaced by another agreement. Collective agreements may also be declared generally applicable under § 5 TVG and then also apply to non-member employers.
Reference clauses
Many employment contracts refer to collective agreements. Whether the reference is static or dynamic determines which future developments in collective agreements will apply. The interpretation of such clauses is particularly important in the case of transfers of undertakings and changes of association.
Conflicting collective agreements
Where several collective agreements concluded by different trade unions apply in one business, § 4a TVG determines which collective agreement is to be applied. In principle, the decisive agreement is that of the trade union with the most members in the business.
How we proceed
We examine which collective agreements apply by virtue of membership, general applicability or reference, and which employment contracts are affected.
We set out the options available, such as membership without being bound by collective agreements, a company collective agreement or the amendment of reference clauses, and assess the consequences of each.
We support the implementation, advise on grading issues and assist you in negotiations on company-level collective agreements.
Frequently asked questions
Does a collective agreement also apply to non-union employees?
Directly, only if it has been declared generally applicable. In practice, however, it is often applied to all employees by means of reference clauses in employment contracts.
What is a company collective agreement?
A company collective agreement is concluded directly between an individual employer and a trade union. It allows for arrangements tailored to the company that may take precedence over a sector-wide collective agreement.
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