Answer: Collective contract is the contract that signs by employers and trade unions or employees collectively. The contract¡¯s terms and conditions apply to all trade union members or the employees who participate in the collective contract. The purpose of collective contract system setting is to protect the rights of employees¡¯ collective bargaining and their employment rights. In contrast, the individual contract is a employment contract negotiated and signed by employee and employer individually.
Therefore, if you join an employer where there is a collective contract, you can join the trade union (or the employee organization concluding collective contract) and sign the collective contract, and the conditions of your employment are basically the same as those of the collective contract. You also can choose to sign an individual contract with the employer to negotiate more favorable terms and conditions in your individual contract than those in the collective contract. At present, the most common employment contract in the practice in China is still the individual contract.
It should be noted that an employer must sign a written employment contract with any new employee within 30 days of the commencement of the employment. If the two parties are unable to agree on the employee¡¯s wage within the 30 days, the wage shall be subject to the collective contract if available. If no collective contract is in place, the principle of equal pay for equal work shall apply.1Article 11 of the Employment Contract Law
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Mr. Dong Wang has been in practice for over 20 years, specializing in business law, including employment law, commercial law, company law, and intellectual property law. Mr. Wang has earned respect and trust from his clients due to his professionalism, fidielty, and kindness.
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- 1Article 11 of the Employment Contract Law