14 of March, 2025

A collective labor agreement is an agreement between an employer and a union or group of workers. It establishes the working and wage conditions for all employees. Let’s see what phases need to be followed to create one.

Phases of the management of a collective labor agreement

To manage a collective agreement it is necessary to follow a series of steps. The goal is for all points of the agreement to be well explained and clarified for both parties.

The creation of a collective agreement establishes the regulation of rights and obligations between employees and the company. This means several aspects need to be considered.

The management of this type of collective labor agreement must have several phases, which we develop below.

The agreement of the contract conditions

The negotiation process of the collective agreement must be managed by members of unions and the company. During this process, both sides must discuss and agree on working conditions and wages to be included in the contract.

The negotiation of the collective labor agreement must be conducted in good faith by both sides. The union represents the workers and must take into account their interests and needs.

On the other hand, the employer must consider the viability and competitiveness of the company.

During the negotiation of the collective labor agreement, both sides must discuss and agree on the working conditions and wages that will be set in the contract.

Among these are salary, working hours, holidays, vacations, paid permits, and other benefits.

Signing of the contract

Once both sides have reached an agreement, the collective labor agreement must be signed. The representatives of the union and the company are responsible for endorsing the document.

It is important that the document is drafted in a clear and precise manner. Its pages must faithfully reflect the agreement that has been reached by both parties.

These are the two most relevant steps. Now let’s look at the third point for creating the agreement.

Application of the contract

Once the collective agreement is signed, it must be applied by the company. From that moment, all contracted workers will begin to enjoy the new conditions.

As you know, it is common for each rank to have different salary tables and each one is placed in the one that corresponds to it.

It is important that the company meets all obligations established in the contract. In addition, it must inform the union about any changes that may occur.

Sometimes, the previous collective agreement expires before it is renewed. In that case, when the new agreement is approved, it must have a retroactive effect from the previous expiration.

Monitoring and review

It is necessary to monitor and review the collective labor agreement periodically to certify that it is being fulfilled, as well as to make adjustments, if necessary. This can be carried out by the union.

If problems or disputes are identified in the application of the contract, it is advisable to try to resolve them amicably.

As we briefly explained in the previous point, you should remember that the duration of the agreement is limited. This means that it must be renewed or renegotiated when it expires.

It is also possible for a collective labor agreement to be modified by mutual agreement between the union and the company or employer at any time during its term. This situation can be due to multiple factors.

However, it is most common when there are considerable increases in inflation. It is also usually modified if the company is going through a difficult time and needs to make adjustments to the workforce.

What does a collective labor agreement contain?

According to the Ministry of Labor, this type of collective labor agreement must always be in writing. At a minimum, it should contain the information we mention below:

Company data and domicile.
Salaries of the different groups of workers.
Insurance coverage, in case a private health insurance applies.
Duration of working hours and free time of each employee based on their schedule.
Clauses and provisions that clarify the tasks of each group of employees in their job.
Content of different areas: personal, functional, territorial, and temporal.
It must include the procedures to effectively resolve any differences that may arise.
Explicit reference should be made to the adjustments that both parties consider necessary so that they are in writing and can carry out the work in the best possible way. At this point, working conditions and productivity objectives should be included.

Using work tools facilitate the process

When you have workers in charge, aspects such as seniority or pending vacation days are relevant. To keep an effective count, SesameHR is the ideal tool.

In this application, you can save the data of all employees securely. This is possible thanks to its security system that encrypts the information.

It also allows you to extract it in different formats so you can share it with other departments. The program stores all the necessary information in the employee database.

In this way, it is easier to find their payrolls, their shifts, etc. Currently, in Spain there are more than 17 million salaried workers, and most of them are included in these agreements. Did you find this content helpful?

In conclusion, a collective labor agreement requires lengthy negotiation sessions and its application is a priority. Thanks to these agreements, it is possible to enjoy suitable conditions for all parties.

Keep reading our blog to stay up-to-date with everything related to your business’s human resources department. Remember, Sesame HR is your human resources software of choice.

Professional with over 20 years of extensive experience in various areas of Human Resources (Recruitment, Training, Occupational Risk Prevention, and Personnel Management). Experience in the Management Department: Broad understanding of the company and HR.

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cristinamartin

HR Content Specialist

How to manage a collective labor contract