General
Tarifvertrag
A collective agreement between employer associations or individual employers and trade unions, setting terms of employment.
Definition
A Tarifvertrag, or collective bargaining agreement, is a legally binding agreement negotiated between employer associations (or individual employers) and trade unions. These agreements regulate various terms and conditions of employment, including wages, working hours, and other benefits, for employees within a specific industry or company. While generally setting wage floors, under the Mindestlohngesetz, any wage provisions in a Tarifvertrag that fall below the statutory minimum wage are superseded by the MiLoG, ensuring the minimum wage acts as an absolute floor.