The majority of employment relationships are covered by a collective agreement. Collective agreements are agreements on the basis of which many key terms and conditions of employment are determined. Almost always, the terms of the collective agreements are more favourable to the employee than the minimum statutory level. In addition, collective agreements agree on many aspects that are not regulated by labour law at all, such as across-the-board wage increases. But how do you know if an employer has to comply with a collective agreement?

1. Normally binding nature of a collective agreement

Employers who are organised as members of employers’ organisations that have concluded a collective agreement comply with the collective agreement on the basis of the normal binding effect. Employers who are not organised but have separately agreed to comply with the collective agreement by means of a so-called ascension agreement are also included within the scope of the normal binding effect.

2. Universal validity of a collective agreement

If approximately half of all employees working in the relevant sector are employed by employers bound by a normally binding collective agreement, the collective agreement can be confirmed as universally binding. All employers operating in the sector concerned are bound by the universally binding collective agreement.

3. Collective agreement agreed to be complied with

The employer and the employee may expressly agree in the employment contract that the employment relationship is subject to a specific collective agreement. In this case, however, it must be taken into account that the entry in the employment contract does not remove the employer’s obligation to comply with a normally or universally binding collective agreement.

The tips and answers were given by Jere Vuorio, employment lawyer at Professionals of Business and Technology.

Our employment lawyers help with disputes related to collective agreements.

If you need help with problems related to the interpretation of a collective agreement, you can contact our employment lawyers at legal@tradenomi.fi or by phone 020 155 8815.