Collective labor contract is mandatory for companies with more than 21 employees, is negotiated between employees and employer and is concluded in written form, with the aim:

  • To define as clearly as possible the rights and obligations of the parties;
  • To allow employees to negotiate certain benefits not included in the Labor Code;
  • To cut labor conflicts, those misconceptions related to economic, professional or social interests;

What is the procedure of negotiating and concluding the collective labor contract?

Companies with at least 21 employees are required to start negotiating and concluding collective labor agreements.

The steps to conclude the collective labor contract are:

1) Informing employees about the employer intends to draw up the collective labor contract, together with the details of the time and date when the employees are summoned to choose their person or persons, as appropriate, to represent them in the relationship with the employer during the negotiations. Depending on the number of employees in the company, you can choose more employees’ representatives and more representatives of the employer.

2) The election of the representatives is made by voting, provided that at least half plus one of the employees vote. After the election, the results are centralized in minutes. The representative declares that he agrees with the proposal and assumes the responsibilities of the role, and the employer recognizes the employees’ representative by internal written decision.

3) The timetable of the meetings for the negotiation of the collective agreement is established. Employee representatives meet with employees to determine their needs, and then negotiate with their employer.

4) The first meeting is more about presenting each party’s interests, the negotiations start from the second meeting, mentioning that the maximum legal duration of the negotiations is 60 days. After each meeting, a recording of the results of the meeting is concluded.

5) After the negotiations, the collective labor agreement is drawn up in 3 copies and signed by all the parties involved.

6) To be reminded that in the collective labor contract we can introduce any benefit or procedure, but we cannot negotiate anything that is under the content of the Labor Code. The collective labor contract may contain elements above the provisions of the Labor Code, but nothing to cancel its provisions.

Where is the collective labor agreement registered?

The collective labor agreement is concluded in 3 copies, signed by all parties involved, one copy remains in the company, one copy to the employees’ representative and one copy to the Territorial Labor Inspectorate of the employer’s headquarter, which gives it a registration number.

The registration number shall be kept at the employer’s premises and shall be made available to the inspection bodies whenever required.

What is the validity of the collective labor contract?

The collective labor agreement may take effect for a maximum of 2 years. After 2 years, the negotiation and drafting procedure is resumed.

If I am in the 2 years of the collective labor contract, can I negotiate another collective contract?

If there are major changes in the relationship between the employee and the employer, another negotiation may be initiated and the changes are made in an addendum to the collective contract, and is registered to ITM of the employer headquarter in addition to the collective labor contract initially, and shall be valid until the expiry of the period of the collective labor contract.

If I do not initiate the negotiation of the collective labor contract I get the fine?

If there is no evidence that the employer has initiated the negotiation of the collective labor contract, he would be fined between 5,000-10,000 Ron.

Unfortunately, many employers only make the initiation procedure and suspend it in order not to receive the fine, but they do not recognize the purpose of the collective agreement, which can relieve them of many conflicts.

Do you need help in concluding the collective labor agreement? We are here.