10. December, 2020
A collective employment contract (CEC) is concluded between employers or their associations and employee organisations in order to regulate the terms and conditions of employment and the relationship between the parties to the CEC. Some of a CEC’s provisions affect payroll accounting.
A collective employment contract may contain provisions governing the commencement, specifics and termination of employment. It is therefore essential to always check whether a CEC is in place and to give careful thought to the following when it comes to payroll accounting:
A collective employment contract may also include provisions governing the rights and obligations between the contracting parties as well as the monitoring and enforcement of the CEC.
This kind of CEC is usually concluded for a specific term. Both parties are obliged to refrain from industrial action during this term.
