At the end of the year, the company agreement will reach the end of its term and has been denounced. How should you act?
If the term of a collective bargaining agreement expires and one of the parties entitled to negotiate it denounces it (i.e. notifies the other party of its intention to terminate its validity), the agreement will remain in force, but a period of negotiations must be initiated to try to agree on a new one. If the agreement is not terminated, its term is extended from year to year; if the agreement is terminated but a new one is not agreed, the previous one remains in force.
It is possible that, within the year following the denunciation of the collective bargaining agreement, the parties entitled to negotiate may agree on a new one. Once the agreement has been denounced, it will remain in force during the negotiations for its renewal (unless expressly agreed otherwise).
If one year has elapsed since the denunciation without an agreement for the subscription of a new agreement having been reached, the term of the denounced agreement is maintained. Prior to December 31, 2021, if one year had elapsed since the denunciation of the denounced collective bargaining agreement without an agreement having been reached, its validity lapsed and the collective bargaining agreement of higher scope had to be used, but this was modified with the last labor reform.
In short, once the term of the collective bargaining agreement has expired, it is extended as follows:
– As established in the agreement itself. For example, the hotel and catering agreement of the Basque Country establishes that it is automatically extended for periods of 12 months.
– In the absence of any provision in the agreement, it is extended for annual periods. There may be several extensions, which will end when one of the two parties expressly denounces the agreement and a new one is agreed.
– Once the collective bargaining agreement has been denounced, it will remain in force during the negotiations for its renewal (unless expressly agreed otherwise).
Our professionals will advise you on any question regarding the application, validity and ultra-activity of collective bargaining agreements.