Skeleton Wage Agreements
Skeleton wage agreements are negotiated between employer associations and trade unions, establishing the fundamental conditions for employment relationships. They encompass clear regulations on various aspects, including working hours, workplace, terminations, and additional benefits. In the following, we'll explain the properties of such an agreement and the advantages associated with their application.
Key Facts
- Skeleton wage agreements serve as the foundation for labor agreements and are negotiated between employer associations and trade unions.
- Regulations cover absences, workplace and working hours, additional benefits, and more.
- Salary is never part of a collective agreement.
- Skeleton wage agreements apply under the following conditions: binding effect of collective agreements, agreement in the employment contract, or when declared generally binding.
- The principle of validity states that if the conditions agreed upon in the employment contract are better than those in the collective agreement, the former takes precedence.
- However, the principle of tariff precedence dictates that a collective agreement always takes precedence over conditions stipulated in an employment contract.
Skeleton Wage Agreements - a Definition
Skeleton wage agreements establish the fundamental conditions within an employment relationship. These conditions are negotiated between employer associations and trade unions, hence the term "skeleton" agreement, as it sets the framework for labor agreements.
The duration of skeleton wage agreements often spans several years or may not be limited in time at all. The agreed-upon conditions remain valid without a time constraint until the termination of an employment relationship.
Collective Agreements and Collective Autonomy
It's important to note that these negotiations operate under the principle of collective autonomy, meaning that the government does not interfere in the negotiations. The overarching goal of collective agreements is to ensure that employees are adequately involved in the economic success of a company without jeopardizing jobs.
What are the Properties of Skeleton Wage Agreements?
Since skeleton wage agreements encompass the fundamental conditions of employment relationships, the following topics are typically included:
- Absences: Regulations regarding the process of sick leave, salary continuation, specified vacation entitlement, and special leave. Importantly, deviations in the work contracts are only permissible in favour of employees.
- Workplace: From a company-provided workspace to home office.
- Occupational Safety: Measures related to hazard protection and regular training sessions.
- Working Hours: Specified weekly working hours, such as the traditional 40-hour workweek.
- Hiring: From the employment contract and the duration of the probationary period to possible fixed-term contracts.
- Termination: Conditions for dismissals, notice periods, and more.
- Qualifications: Entitlement to and financing of further education opportunities.
- Additional Benefits: Such as regulations on company pension schemes.
Not covered by a collective agreement is, for example, salary, which is addressed by separate wage or salary agreements.
Skeleton Wage Agreement and Salary
As mentioned earlier, salary is never part of a collective agreement. Instead, this is covered by salary agreements, which specify the corresponding salary groups and tariff levels. This is also the main difference between a skeleton wage agreement and a salary agreement.
Skeleton Wage Agreement and Termination
While legal notice periods usually apply, meaning an employment contract cannot have conditions less favourable than those set by law, a collective agreement has the flexibility to both extend or reduce statutory notice periods. It's essential, however, that a notice period applies equally to both employees and employers.
Examples of Skeleton Wage Agreements
The Skeleton wage agreement for the Public Service governs tariff conditions for federal and municipal employees and is one of the most well-known examples of a Skeleton wage agreement. There are also Skeleton wage agreements for:
- The metal and electrical industry in Baden-Württemberg
- Retail in Brandenburg
- The insurance industry in Germany
- System gastronomy in Germany
A comprehensive overview of all existing collective agreements can be found in the register of all agreements.
Termination of Employment Contract – What to Consider?
The termination of an employment contract is always a unilateral declaration of intent. Unlike termination agreements or amendments, it is legally effective even without the agreement of the contractual partner.
When Do Skeleton Wage Agreements Apply?
A skeleton wage agreement applies in the following scenarios: Binding effect: As long as employers are part of an employer association and employees are part of the trade union, or even if only the employer is part of an employer association Agreement in the employment contract: Possible even without collective bargaining, as long as a reference clause to the collective agreement is included in the employment contract Declaration of the collective agreement as generally binding by the Federal Ministry.
Benefits of a Skeleton Wage Agreements
The principle of tariff precedence is crucial for employees. This means that a skeleton wage agreement always takes precedence over conditions stipulated in an employment contract. If conditions are agreed upon in the employment contract but are less favourable for the employee than those in the agreement, the latter always prevails.
At the same time, the principle of validity applies. If the conditions agreed upon in the employment contract are better than those in the agreement, the former prevail. As mentioned earlier, employee membership in a trade union is not a prerequisite, as all employees equally benefit from the application of a agreement.
Do Employers Have the Obligation to Inform?
No, even if there is a skeleton wage agreement for a specific industry, employers are not obligated to inform their employees. However, they must adhere to the conditions outlined in the applicable agreement.
FAQ - Frequently asked questions at a glance
Skeleton wage agreements establish the fundamental conditions within an employment relationship. These conditions are negotiated between employer associations and trade unions, hence the term "skeleton" agreement, as it sets the framework for labor agreements.
The duration of skeleton wage agreements often spans several years or may not be limited in time at all. The agreed-upon conditions remain valid without a time constraint until the termination of an employment relationship.
A skeleton wage agreement applies in the following scenarios: Binding effect, Agreement in the employment contract, or Declaration of the collective agreement as generally binding by the Federal Ministry.
Even if there is a skeleton wage agreement for a specific industry, employers are not obligated to inform their employees. However, they must adhere to the conditions outlined in the applicable agreement.
The principle of tariff precedence is crucial for employees. This means that a skeleton wage agreement always takes precedence over conditions stipulated in an employment contract. If conditions are agreed upon in the employment contract but are less favourable for the employee than those in the agreement, the latter always prevails.
At the same time, the principle of validity applies. If the conditions agreed upon in the employment contract are better than those in the agreement, the former prevail.
Disclaimer
We would like to point out that our website provides non-binding information, which under no circumstances constitutes legal advice. This also, and especially, applies to topics within the sphere of legal HR advise. The content of this contribution cannot and is not intended to replace individual and binding legal advice. For this reason, all information provided is without guarantee of correctness and completeness, but always researched with the utmost care.