Governance

Collective Contract

An agreement between an employer (or employers' association) and a trade union (or worker representatives) on employment terms.

Definition

A collective contract (集体合同) is an agreement negotiated and concluded between an employing unit (or a representative of employing units) and the trade union (or worker representatives) within an enterprise or industry. It covers various aspects of labor relations, including labor remuneration, working hours, rest and vacation, occupational safety and health, insurance and welfare, and other matters directly affecting workers' immediate interests. Once approved by the labor administrative department, it becomes legally binding on both the employer and all workers it covers.