6. Establishment Agreement

A Company or Establishment Agreement is an agreement concluded between, on the one hand, one or more employers and, on the other hand, staff delegates and representatives of the trade unions that are most representative of the staff at the establishment or establishments concerned.

The company or establishment agreement is a type of collective agreement limited to the company or establishment. Its purpose is to adapt more favourable contractual, regulatory and legal provisions to the specific conditions of the establishment or establishments in question.

The agreement has the same legal force as a collective agreement and is therefore binding on the signatory parties.

 

Negotiating an agreement

The negotiation of an establishment agreement takes place between the parties to the contract (employers and employees).

As most collective agreements are now obsolete, it is becoming increasingly common for companies to negotiate their own workplace agreements.

 

Benefiting employees

A company or workplace agreement must not reduce or call into question any contractual, regulatory or statutory benefit already acquired. In the areas covered by these various texts, it must be more favourable and address matters not covered or overlooked by them.

The agreement may be for a fixed term or of indefinite duration.

However, it may be terminated by either signatory party subject to a minimum notice period of three months.

 

What should you do if you take over a business where an agreement was in force?

Existing employment contracts (pre-existing contracts) remain in force. The agreement will continue to apply unless a suspension protocol is concluded between the new employer and the workers’ representatives, or, more specifically, unless a transitional agreement is concluded.

 

Terminology

Joint company or establishment agreement: This is an agreement entered into with the staff representatives of a company comprising several establishments.

It may also be an agreement negotiated by the social partners (employers and workers) of several separate companies.

Trade union committee: This may exist in any company with a workforce of more than 10 employees. It must be affiliated to a trade union confederation.

Trade union section: This is a group of employees from two or more companies affiliated to the same trade union confederation. Its existence within a sector triggers the obligation to negotiate and conclude company-level agreements.