Governance
Collective Bargaining Agreement
A legally binding agreement between employer associations and trade unions setting minimum terms of employment.
Definition
A Collective Bargaining Agreement (Kollektivvertrag) is a legally binding agreement negotiated between employer associations and trade unions in Austria. These agreements set out minimum terms and conditions of employment, including wage scales, working hours, allowances, and special payments, for specific industries or sectors. The LSD-BG mandates that employers must adhere to the remuneration levels and working conditions stipulated in the applicable collective bargaining agreements, making them a crucial benchmark for compliance.