Collective Agreement Interpretation

Collective agreement interpretation and analysis is a critically important legal service that serves to ensure the correct understanding and enforcement of agreements between employers and employee associations (trade unions). Collective agreements often contain complex terms regulating working hours, remuneration, leave, occupational safety, and social guarantees. Misinterpretation of this document can lead to large-scale labor disputes, strikes, and financial losses. Professional analysis ensures that parties know their rights and obligations precisely, fostering a stable working environment.

What does the Collective Agreement Interpretation service cover?

This service is designed for both trade unions and company management and includes:

• Audit of terms: Detailed study of each article of the agreement to determine compliance with Georgian legislation.
• Clarification of ambiguous provisions: Legal interpretation of ambiguous entries to rule out varying interpretations in case of a dispute.
• Performance monitoring: Assessment of how well the obligations undertaken by the agreement are being fulfilled (e.g., wage indexation or bonus distribution).
• Risk identification: Identification of potential legal risks that may arise due to violation or non-performance of specific points of the agreement.
• Adaptation recommendations: Preparing draft amendments to the agreement in accordance with legislative changes.
• Dispute mediation: Preparation of an objective legal opinion based on the text of the agreement in case of disagreement between the parties.

Common scenarios when this service is necessary

Collective agreement analysis is particularly important in the following cases:

• When company management changes and the new leadership wants to understand existing obligations towards employees.
• During a labor dispute or impending strike, when the subject of the dispute is a violation of agreement terms.
• When labor legislation changes and it is necessary to determine whether the provisions of the old agreement remain valid.
• In the process of Mergers and Acquisitions (M&A), when an investor needs to assess the burden of the target company's labor obligations.
• Before starting annual negotiations between the union and administration to assess the current situation.

Georgian Legislation and Regulations

Collective labor relations are regulated by the Organic Law of Georgia "Labor Code of Georgia" (Chapter XII). The law defines the rules for concluding, modifying, and terminating a collective agreement. Specifically, the Code establishes that a collective agreement cannot contain conditions that worsen the employees' situation compared to the law.

Also important is the Law of Georgia "On Trade Unions", which protects the right of unions to conduct collective bargaining. When interpreting the agreement, lawyers rely not only on the text but also on principles of good faith and International Labour Organization (ILO) conventions to which Georgia is a signatory.

Service Delivery Process

1. Document Review: The lawyer reviews the existing collective agreement and its annexes in detail.
2. Interviews with Parties: If necessary, interviews are conducted with management or union leaders to identify practical problems.
3. Legal Opinion: A written document (Legal Opinion) is prepared, explaining disputed or complex articles.
4. Presentation: Presenting the conclusion to the interested party and discussing details in a Q&A mode.
5. Action Plan: Issuing recommendations to eliminate shortcomings or initiate negotiations.

Why choose a specialist on Legal.ge?

Collective labor disputes are often complex and require specific knowledge that goes beyond general jurisprudence. Legal.ge gives you access to lawyers who have practical experience in dealing with trade unions and analyzing collective agreements. Experts selected through our platform will help you avoid years of litigation and maintain healthy labor relations within the organization.