Collective Agreement Intention to Create Legal Relations: What It Means
In labor law, a collective agreement is a written agreement between an employer and a union representing the employees. It establishes the terms and conditions of employment, such as wages, hours of work, benefits, and grievance procedures. The collective agreement is binding on both the employer and the union and may be enforced by either party.
One of the essential elements of a collective agreement is the intention to create legal relations. The principle of intention to create legal relations is a fundamental concept in contract law. It refers to the parties` intention to be legally bound by the terms of the agreement.
In the context of a collective agreement, the intention to create legal relations means that the employer and the union have agreed to be bound by the terms and conditions of the agreement. It is crucial because without the intention to create legal relations, the collective agreement would not be enforceable.
To establish the intention to create legal relations, the collective agreement must meet several requirements. First, it must be in writing and signed by the employer and the union`s authorized representatives. The signatures indicate that the parties have agreed to be bound by the terms of the agreement.
Second, the agreement must contain clear and unambiguous language that shows the parties` intention to create legal relations. It must state that the parties intend to be bound by the terms and conditions of the agreement and that the agreement is legally binding.
Third, the parties must have the capacity to enter into the agreement. The employer and the union must have the authority to negotiate and sign the agreement on behalf of their respective organizations. If there is any question about the parties` capacity, the agreement may be challenged on those grounds.
Fourth, the agreement must not be illegal, immoral, or against public policy. If the terms of the agreement are contrary to the law or public policy, the agreement may be deemed unenforceable.
Finally, the parties must have entered into the agreement freely and voluntarily. There must be no coercion or undue influence on either party. If one party can show that it was forced or coerced into signing the agreement, it may be voided.
In conclusion, the intention to create legal relations is a vital element of a collective agreement. It establishes the employer and union`s commitment to abide by the terms and conditions of the agreement. To ensure that the intention to create legal relations is met, the collective agreement must be in writing, clear, unambiguous, and signed by authorized representatives of the parties. It must not be illegal or contrary to public policy, and the parties must have entered into the agreement freely and voluntarily. By meeting these requirements, the collective agreement becomes a binding and enforceable agreement between the employer and the union.