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Module 3/4 30 min

Content, validity and filing of the agreement

Step 1 / 2·The floor principle: better, never worse

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Learning objectives — after this module you will:

  • Apply the principle that an agreement must improve on the law
  • Tell suitable content from unsuitable content
  • Know validity, term and the filing procedure
Learn ~12 min

The floor principle: better, never worse

Understand why a signed clause can still be void.

A collective labour agreement is an agreement between the workforce and the employer on working conditions. The founding principle: its content must not contravene the law and should be more favourable to employees than the law requires.

The direct consequence: a clause granting less than the statutory minimum is void, even though both sides signed it. Signature does not legitimise anything below the floor.

A meeting between representatives of both sides
An agreement raises the floor of entitlements; it cannot lower it.Photo: Annie Spratt / Unsplash

What belongs in an agreement and what does not

Belongs inDoes not belong in
Allowances, meal money and travel support above current levelsClauses that merely restate the law word for word — they add nothing
More annual leave or personal leave than the statutory minimumEntitlements below the law — the clause will be void
Commitments on training, grade progression and working conditionsPurely operational matters that change with the season
A mechanism for dialogue and issue resolution between bargaining roundsLong-term absolute financial commitments the business may not sustain for the full term

Do not commit to what you cannot hold for the whole term

An agreement runs for one to three years. A generous financial commitment signed in a good year becomes a binding burden in a hard one. Consider tying commitments to business performance measures rather than to absolute figures.

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