Understanding Collective Agreement Timeframes and Termination

Collective Agreement Timeframes and Termination

Temporal Scope: Parties have the freedom to define the agreement's timeframe, including the start date and duration. They can set different validity periods for specific subjects or groups within the agreement and even apply retroactive effects. Two key aspects must be considered:

1. Effective Implementation of the Agreed Time

   When the set deadline arrives, two scenarios can occur:

   • No Express Allegation

     If the parties agree to maintain the agreement beyond the original period, it extends from year to year.

   • Report of Termination

     If the parties want to end the agreement and negotiate a new one, the following applies until a new agreement is reached:

     • Obligational clauses become outdated and can be used to negotiate a new collective agreement.
     • Normative clauses remain valid until a new agreement is reached, as per the treaty itself.

     This indefinite extension, known as 'ultra-activity,' is outlined in art. 86.3 ET. It prevents a void between agreements, ensuring continuity of normative content until a new agreement is reached. The new agreement repeals the previous one unless it expressly maintains any aspect of the old one.

2. Early Termination of the Term

   Early termination can occur for several reasons:

   • Unilateral Withdrawal

     If the agreement itself allows for unilateral withdrawal as a termination ground.

   • Mutual Agreement

     By joint decision of the signatory organizations to terminate the agreement before the original deadline.

   • Serious Event

     If a serious event affects the internal balance of the agreement, the rebus sic stantibus principle may allow for restructuring or termination. However, renegotiation is prioritized, and termination is only considered in exceptional cases.

   • Company Acquisition

     If one company acquires another, the agreement generally continues. However, the representatives of the employees of the acquired company and the new employer can agree to terminate the agreement of the original company and apply the agreement of the acquiring company.