Trade union

What it means

A trade union is an association of employees defending their pay and working conditions. It comes into being on entry in the register kept by the Ministry of the Interior, and it may act at an employer only once it shows that at least one of its members works there.

It is one of the employee representatives alongside the works council and the employee trustee. Unlike them it can conclude a collective agreement and settle terms above the statutory floor.

A union does not speak only for its members. Where it operates at an employer, it represents all employees in collective bargaining and in matters where the law requires the representatives’ consent, such as issuing the works rules, even if only a small part of the staff belongs to it.

How it works in practice

Where a union operates, the Labour Code obliges the employer to discuss a notice of termination and an immediate dismissal with it in advance, to inform it about the state of the business and to agree the use of the social fund.

Payroll changes with it: a collective agreement can raise premiums, extend holiday or shorten working time. The agreed terms apply to every employee it covers, not only to those who are members of the union.

The employer may deduct union dues from pay only under a written agreement with the employee, and passes them to the union’s account. In the payroll system they are set up as a separate deduction from net pay, so they do not get mixed up with garnishment deductions.

What to watch out for

A notice of termination served without prior discussion with the union is invalid. The employee wins compensation for the months not worked, so a formality of a few days, once skipped, turns into a year of wage cost.

Obligations under a collective agreement bind for its whole term, even if the company’s sales fall. Premiums or contributions agreed in a good year cannot be withdrawn unilaterally, so before signing we cost them over the full term and put them into the budget.