What is a collective agreement?

A collective agreement is fundamentally a workplace agreement formed through negotiations between an employer and a group of employees, often represented by a union. This type of agreement outlines terms and conditions of employment, including wages, hours of work, and other workplace rights, reflecting the collective interests of the employees it represents.

This mechanism allows a group of employees to negotiate from a position of strength, enabling them to secure better conditions than they might achieve individually. It is a crucial aspect of labor relations, promoting cooperation between employees and employers and ensuring that workers have a voice in workplace policies.

The other options do not capture the essence of a collective agreement. An individual contract pertains to a single employee, which does not involve collective negotiations. A standard contract applied universally does not take into account the specific conditions or negotiations relevant to particular groups or industries. Meanwhile, a legislative requirement may enforce certain rights and protections for employees but is not the same as a negotiated agreement between parties in a workplace setting.