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Collective Agreements Act

Passed 14.04.1993
RT I 1993, 20, 353
Entry into force 16.05.1993

Amended by the following legal instruments (show)

Chapter 1 GENERAL PROVISIONS  

§ 1.  Purpose of Act

  This Act determines the legal bases for the entry into and performance of collective agreements.

§ 2.  General principles

 (1) A collective agreement is a voluntary agreement between employees or an association or a federation of employees and an employer or an association or a federation of employers, and also state authorities or local governments, which regulates employment relationships between employers and employees.

 (2) An association or a federation of employers unites legal and natural persons who are employers for the purposes of the Employment Contracts Act by branch of activity or on the basis of any other criteria, and protects and represents the interests of its members in employment relationships.

 (3) An association or a federation of employees unites employees by branch of activity, enterprise, institution or other organisation, or profession (occupation), and protects and represents them in employment relationships pursuant to its articles of association.

§ 3.  Parties to collective agreement

 (1) A collective agreement may be bilateral or tripartite.

 (2) A collective agreement is entered into between:
 1) an employer and an association, a federation or an authorised representative of employees;
 2) an association or a federation of employers and an association or a federation of employees;
 2¹) a local government association and an association or a federation of employees and officials;
 3) a confederation of employers and a confederation of employees;
 4) the confederation of associations of employees, a confederation of employers and the Government of the Republic, and between local federations of associations of employees, a federation of employers and local governments.

 (3) Collective agreements in enterprises, institutions and other organisations must be entered into by the relevant association of employees. If employees are not represented by a trade union in an enterprise, institution or other organisation, an authorised representative of the employees must enter into the collective agreement.

 (4) In a governmental authority, a state authority administered by a governmental authority or a state administrative authority, the head of the authority may enter into a collective agreement as an employer. The head of the authority will be liable for the conformity of the obligations assumed by the collective agreement with the state budget.

 (5) In a local government authority or an authority administered by a local government authority, the head of the authority or the city or rural municipality government may enter into a collective agreement as an employer. The head of the authority will be liable for the conformity of the obligations assumed by the collective agreement with the rural municipality or city budget.
[RT I 2001, 102, 670 – entry into force 10.01.2002]

§ 4.  Scope of application of collective agreement

 (1) A collective agreement applies to such employers and employees who belong to organisations which have entered into a collective agreement, unless otherwise prescribed by the collective agreement.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

 (2) The terms and conditions of a collective agreement which are less favourable to employees than those prescribed by an Act or other legislation are invalid, unless an option for such an agreement has been prescribed by law.
[RT I 2009, 5, 35 – entry into force 01.07.2009]

 (3) In the event of a conflict between the provisions of different collective agreements, the provision which is more favourable to the employees applies.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

 (4) [Repealed – RT I, 12.11.2021, 2 – entry into force 22.11.2021]

 (5) [Repealed – RT I, 12.11.2021, 2 – entry into force 22.11.2021]

§ 4¹.  Registration of collective agreements

 (1) Collective agreements entered into must be registered in the Estonian Collective Agreements Register. The Register is maintained for the purpose of retaining effective collective agreements, for making collective agreements available to the parties thereto, for obtaining statistical data and in regard to the conditions set out in clauses 1 and 3 of subsection 1 of § 6 of this Act for publishing the terms and conditions of collective agreements which have been entered into between an association or a federation of employers and an association or a federation of employees or between a confederation of employers and a confederation of employees and which have been extended by agreement of the parties.

 (2) The statutes of the Register are established by a regulation of the minister in charge of the policy sector.

 (3) The following must be provided for in the statutes of the Estonian Collective Agreements Register:
 1) the processor;
 2) the duties of the controller and the processor;
 3) the composition of the data collected and the registration procedure;
 4) the procedure for access to and issue of data;
 5) other organisational matters.

 (4) The following data is to be processed in the Estonian Collective Agreements Register:
 1) person’s data: given name and surname, personal identification code, contact details, type of the representative of employees;
 2) employer’s data;
 3) basic data concerning agreements.

 (5) The data specified in subsection 4 of this section must be retained for ten years as of the expiry of the relevant collective agreement.

 (6) The controller of the Estonian Collective Agreements Register is the Ministry of Economic Affairs and Communications.
[RT I, 30.06.2023, 1 – entry into force 01.07.2023]

§ 4².  Extension of condition of collective agreement

 (1) A collective agreement may be extended by agreement of the parties in terms of the conditions determined in clauses 1 and 3 of subsection 1 of § 6 of this Act. The scope of extension must be determined in the collective agreement.

 (2) An extended condition of a collective agreement will also apply to those employers and employees who are not parties to the collective agreement or persons whose interests are represented by the parties under the collective agreement and who are engaged in the industry agreed upon in the collective agreement or in a trade agreed upon in the range of such an industry.

 (3) Extension of a condition of a collective agreement may be agreed upon by:
 1) a federation of trade unions or an industry trade union whose members account for 15 per cent of the employees in that industry or who have at least 500 members; and
 2) an association or federation of employers whose members employ at least 40 per cent of the corresponding industry’s employees covered by the extended condition of the collective agreement.

 (4) The number of employees referred to in clause 2 of subsection 3 of this section is estimated based on the average number of employees in the corresponding industry according to information from the Tax and Customs Board over the course of three months preceding the entry into the agreement on extension of the condition of a collective agreement, and based on evidence produced by the parties who made the agreement on extension of the condition of a collective agreement.

 (5) Estimation of the number of employees referred to in clause 2 of subsection 3 of this section also takes into account employers not in any association or federation of employers who express to the association or federation their desire to enter into the agreement on extension of the condition of a collective agreement.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

§ 4³.  Information and consultation upon extension of condition of collective agreement

 (1) Before extending a condition of a collective agreement, the parties to bargaining must provide information about their intention to extend to employers and associations and federations of employees in respect of whom the extension of the condition of the agreement is sought, and consult with them according to the procedure provided by this section.

 (2) The obligation to inform and consult includes at least:
 1) the condition to be extended;
 2) the scope of application of the condition to be extended;
 3) the estimated time of entry into effect of the condition to be extended.

 (3) The parties to bargaining are to notify the public through a national media channel no later than 30 days before the bargaining concerning the extension of the condition of a collective agreement begins, announcing:
 1) the information referred to in subsection 2 of this section;
 2) the due date for notifying of desire to participate in the consultation process;
 3) contact details of the parties to bargaining.

 (4) The employer and the association or federation of employees in respect of whom a condition of a collective agreement is intended to be extended must give notice of their desire to consult with the parties to bargaining within ten days after the announcement of the information referred to in subsection 3 of this section, unless the notice sets out a longer term.

 (5) During bargaining, the employer and the association or federation of employees participating in consultation have the right to present opinions and proposals as to the extension and be given due explanations from the parties to bargaining. The parties to bargaining must justify disregard for opinions and proposals.

 (6) After bargaining concerning the extension of a condition of a collective agreement has ended the parties to bargaining are to notify the public through a national media channel, publishing the agreement reached on the website of the association or federation of employees and the association or federation of employers who participated in the bargaining.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

§ 4⁴.  Checking of extended condition of collective agreement

 (1) An extended condition of a collective agreement must be presented to the minister in charge of the policy sector along with documents proving the compliance of the parties to the collective agreement with the conditions provided for in subsectiona 1 and 3 of § 4² and performance of the obligations provided for in § 4³ of this Act.

 (2) The minister in charge of the policy sector will check the compliance of the extended condition of the collective agreement with the requirements of this Act. For advisory purposes, representatives of confederation of employers and confederation of employees will be involved in the checking process.

 (3) The minister in charge of the policy sector will publish the extended condition of the collective agreement in the official publication Ametlikud Teadaanded or, if not in compliance with the law, refuse its publication within ten business days after the presentation of the extended condition provided for in subsection 1 of this section. The minister in charge of the policy sector may extend this term by up to ten business days if checking of the extended condition of the collective agreement requires further information and investigation.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

§ 4⁵.  Entry into effect of extended condition

  An extended condition of a collective agreement takes effect after the passing of three months from the publication in the official publication Ametlikud Teadaanded, unless the agreement sets out a later date.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

§ 4⁶.  Agreement on national minimum wage

 (1) By way of a collective agreement a confederation of employers and a confederation of employees may agree upon a national minimum wage applicable to all employees and employers.

 (2) The agreement on a national minimum wage is not subject to the provisions of §§ 4² through 4⁵ of this Act.

 (3) The minister in charge of the policy sector will publish the agreement on a national minimum wage in the official publication Ametlikud Teadaanded within ten business days after its presentation to the minister.

 (4) The agreement on a national minimum wage takes effect after the passing of one month from the publication in the official publication Ametlikud Teadaanded, unless the agreement sets out a later date.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

Chapter 2 FORM AND CONTENT OF COLLECTIVE AGREEMENT  

§ 5.  Form of collective agreement

 (1) A collective agreement must be entered into in writing.

 (2) Any annexes to a collective agreement are an integral part of the agreement and have the same legal force as the collective agreement.

§ 6.  Content of collective agreement

 (1) A collective agreement entered into between the parties specified in clauses 1-3 of subsection 2 of § 3 of this Act may determine:
 1) the wage conditions;
 2) the working conditions;
 3) the working and rest time conditions;
 4) the conditions for the amendment and termination of an employment contract, and the bases for refusing to perform work;
[RT I 2009, 5, 35 – entry into force 01.07.2009]
 5) the conditions and the procedure for lay-off of employees and the guarantees in the event of lay-off;
 6) the conditions for occupational health and safety;
 7) the conditions for vocational training, in-service training and re-training, and assistance to the unemployed;
 8) any guarantees and compensation which the parties consider necessary;
 9) the procedure for monitoring the performance of the collective agreement and providing necessary information;
 10) the procedure for the amendment and extension of the collective agreement, and for the entry into a new collective agreement;
 11) additional liability for the non-performance of the collective agreement;
 12) the procedure for submitting demands of employees and employers in the event of a collective labour dispute;
 13) any terms which regulate other relations between the parties to the collective agreement.

 (2) A collective agreement entered into between the parties specified in clause 4 of subsection 2 of § 3 of this Act may determine:
 1) the minimum wage and the procedure for amending it based on the increase in the cost of living;
 2) any additional measures to ensure occupational health and safety;
 3) any additional employment guarantees;
 4) any other additional guarantees pertaining to employment which the parties consider necessary;
 5) the procedure for monitoring the performance of the collective agreement and obtaining necessary information.

 (3) A collective agreement may determine the additional rights and guarantees in employment relationships for a person who represents employees.

Chapter 3 ENTRY INTO, TERM AND AMENDMENT OF COLLECTIVE AGREEMENT  

§ 7.  Procedure for entry into collective agreement

 (1) The parties specified in this Act enter into a collective agreement by bargaining on the basis of mutual trust and necessary information.

 (2) The party which initiates bargaining must prepare a draft collective agreement and present it in writing to the other party together with a notice of the desire to commence bargaining.

 (3) The parties must commence bargaining within seven days after receiving such a notice.

 (4) The parties must appoint their representatives to conduct bargaining. Associations or federations of employees may, by agreement with each other, establish joint representation and enter into a joint collective agreement.

 (5) Bargaining is conducted at the time agreed on by the parties. By agreement of the parties, their representatives must be free from work to conduct bargaining during working time and they must continue to receive their average wages.

§ 8.  Rights and obligations of parties

 (1) The parties have the right to include qualified persons and experts in bargaining and in the drafting of a collective agreement, and to form working groups on the basis of parity. The cost of inviting the qualified persons and experts is to be borne by the party which invited them.

 (2) Representatives, qualified persons and experts of the parties participating in bargaining, and other persons involved in drafting a collective agreement are required to maintain the confidentiality of any industrial, business or professional secrets which become known to them. Persons who violate this requirement are held liable pursuant to the procedure prescribed by law.

§ 9.  Guarantees

  Employment contracts entered into with representatives of the parties who participate in bargaining must not be cancelled on the basis provided for in clause 4 of subsection 1 of § 92 of the Employment Contracts Act.
[RT I 2009, 5, 35 – entry into force 01.07.2009]

§ 10.  Resolution of disputes arising upon entry into collective agreement

  Disputes arising upon the entry into a collective agreement are resolved pursuant to the Collective Labour Dispute Resolution Act.

§ 11.  Entry into force and term

 (1) A collective agreement enters into force on the date of signature, unless the collective agreement prescribes otherwise.

 (2) The term of a collective agreement is one year, unless the parties agree otherwise.

 (3) The parties are required to comply with the terms and conditions of a collective agreement during the term of the collective agreement and refrain from calling a strike or a lock-out with the aim of amending the terms and conditions provided for in the collective agreement.

 (4) Upon the transfer of an enterprise or an organisationally independent part thereof from one person to another, the relevant collective agreement must be transferred to the transferee of the enterprise. For the purposes of this Act, business entities which do not belong to an undertaking, and authorities and other organisations are also deemed to be enterprises.

 (5) Upon the expiry of the term of a collective agreement it is deemed that the collective agreement is valid for an indefinite period of time unless either party to the collective agreement notifies the other party in writing at least three months before the expiry of the collective agreement that it does not wish for the agreement to be extended. In the event the collective agreement becomes valid for an indefinite period of time, the parties are required to comply with the terms and conditions of the collective agreement until a new agreement is entered into or the collective agreement is terminated by cancellation. A collective agreement which is valid for an indefinite period of time may be cancelled by either party to the agreement by notifying the other party thereof no less than six months in advance. The obligation arising from a collective agreement to refrain from calling a strike or a lock-out ends as of the submission of a notice concerning the cancellation of the collective agreement.
[RT I, 29.03.2012, 2 – entry into force 01.05.2012]

§ 12.  Publication of collective agreement

 (1) A collective agreement entered into must be available to everyone whom it concerns.

 (2) An employer is required to introduce a collective agreement to all employees of the relevant enterprise, authority or other organisation and to new employees when they commence employment.

§ 13.  Amendment of collective agreement

  A collective agreement is amended pursuant to the procedure prescribed in the collective agreement. If such a procedure has not been established, the collective agreement is amended pursuant to the procedure provided by law.

Chapter 4 MONITORING OF PERFORMANCE OF COLLECTIVE AGREEMENT, RESOLUTION OF DISPUTES, AND LIABILITY  

§ 14.  Monitoring of performance

 (1) The performance of a collective agreement is monitored by authorised representatives of the parties.

 (2) The procedure for providing information on and monitoring the performance of a collective agreement is determined by the collective agreement.

§ 15.  Resolution of disputes arising from performance

  Disputes arising from the performance of a collective agreement are resolved pursuant to the procedure prescribed in the collective agreement and in accordance with the Collective Labour Dispute Resolution Act.

§ 16.  Liability

  Upon the non-performance of the obligations prescribed in a collective agreement, the party at fault is held liable pursuant to the procedure prescribed by law and in the collective agreement.

Chapter 4¹ STATE AND ADMINISTRATIVE SUPERVISION  
[RT I, 28.04.2017, 1 - entry into force 08.05.2017]

§ 16¹.  Exercise of state and administrative supervision

  [RT I, 28.04.2017, 1 – entry into force 08.05.2017]

 (1) State and administrative supervision over compliance with the requirements of this Act, including an extended condition of a collective agreement, is exercised by the Labour Inspectorate.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

 (2) In order to exercise the state supervision provided by this Act, the Labour Inspectorate may apply the special measures of state supervision provided for in §§ 30–32 and 49–51 of the Law Enforcement Act on the basis and pursuant to the procedure provided for in the Law Enforcement Act.
[RT I, 28.04.2017, 1 – entry into force 08.05.2017]

§ 16².  Challenge proceedings regarding precepts

  [Repealed – RT I, 28.04.2017, 1 – entry into force 08.05.2017]

Chapter 5 IMPLEMENTATION OF ACT  

§ 17.  

 (1) Collective agreements and other agreements entered into prior to the entry into force of this Act are valid in so far as they are not contrary to this Act.

 (2) The provisions of subsection 5 of § 11 of this Act are also applied to collective agreements entered into before 1 May 2012.
[RT I, 29.03.2012, 2 – entry into force 01.05.2012]

§ 17¹.  Validity of extended condition of collective agreement

  An extended condition of a collective agreement published in the official publication Ametlikud Teadaanded before the entry into force of this Act if the extended condition does not meet the requirements provided for in subsection 3 of § 4² of this Act will cease to be valid on 31 December 2021, unless the collective agreement sets out an earlier date.
[RT I, 12.11.2021, 2 – entry into force 22.11.2021]

§ 18.  [Omitted from this text.]