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Work Agreement Meaning

Since the mid-1980s, enterprise contracts have become increasingly important in Austria as an instrument for regulating employment conditions as part of the general trend towards greater flexibility. In particular, many sectoral collective agreements have delegation clauses (opening clauses) that should allow for greater flexibility in working time. Such clauses allow management and corporate committees to enter into enterprise agreements regulating certain working periods within the general framework of collective agreements. Recently, such delegation clauses have also been agreed for certain sectors in order to increase wage flexibility. It should be noted that enterprise agreements relating to matters whose regulations are not legally delegated to the Works Council and the individual employer have no legal value, but are often regarded by the courts as contractual clauses that are perceived by employees as offers from the employer to modify or complete the employment contract and which employees may have accepted by accepting the corresponding salary or benefits. In other words, the content of an unenforceable enterprise contract generally complements the employment contract and is therefore «contractual». Such agreements, which are in themselves legally unenforceable but which are ultimately legally binding, are called free enterprise agreements. If you don`t have a personnel policy for these situations in your business, you can`t go with anything that works. Defined in Austrian law (Labour Constitution Act, Article 29) as a written agreement between the employer and the Works Council (or association of works councils, works councils or group works councils) on matters whose regulation is reserved by law or collective agreement for such agreements. This means that the parties to the enterprise agreements do not have unlimited regulatory authority, but can only deal with matters whose regulations have been entrusted to the parties involved in the law or the collective agreement.

This skill almost invariably includes so-called social issues (i.e. issues in which the employer has significant rights for workers, such as the introduction of computerised personnel information systems, the setting of departure and end times for daily working hours (see working time/work hours: flexible hours), the length and duration of breaks and the allocation of working time during the days of the week, the implementation of staff questionnaires and control measures or technical equipment to monitor workers` performance, adaptation of work to human needs, etc. However, the responsibility for setting (basic) remuneration is not delegated by law to parties to enterprise agreements. The only wage-related issues that may fall within the regulatory scope of these agreements are the remuneration rights for participation in company meetings (see working time/working time: flexible hours), payments specific to the institution concerned, incentive schemes and occupational pension schemes. This restriction is intended to avoid conflicts between collective agreements and enterprise agreements and to reserve the setting of remuneration rates primarily to social partners and to ensure their priority throughout the system of representation of workers. The main objective is to prevent trade union wage policies from being compromised by company-specific policies, based on different priorities.