Employment Tax

Collective agreements

Produced by Tolley in association with Hogan Lovells
  • 21 Dec 2021 16:44

The following Employment Tax guidance note Produced by Tolley in association with Hogan Lovells provides comprehensive and up to date tax information covering:

  • Collective agreements
  • Enforceability between union and employer
  • Enforceability between employee and employer
  • Changes to collective agreements
  • No strike clauses

Collective agreements

Collective agreements are agreements negotiated between one or more trade union and one or more employer or employers' association. Collective agreements can affect almost all aspects of the employment relationship and the terms and conditions of an individual employment contract, including:

  1. remuneration

  2. working hours

  3. working conditions

  4. overtime

  5. disciplinary procedures

  6. grievance procedures

  7. training

  8. health and safety

TULR(C)A 1992, s 178(1)

Collective agreements can cover all employees, they are not limited to the union members.

Enforceability between union and employer

The provisions of TULR(C)A 1992 as well as the common law both hold that the existence of a collective agreement does not equate to an intention to create legal relations between the parties. In order for a collective agreement to be enforceable between the union and the employer it must:

  1. be in writing, and

  2. contain a provision clearly indicating that the parties intend it to be legally enforceable

This rule applies to collective agreements only where they relate to:

  1. terms and conditions of employment, or the physical conditions of work

  2. engagement or non-engagement, termination or suspension of employment, or duties of employment

  3. allocation of work or duties

  4. discipline of employees (process, consequences, etc)

  5. membership of a trade union

  6. facilities for trade union officials

  7. machinery for negotiation or consultation

TULR(C)A 1992, s 179


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