Agency Shop

Posted in Human Resources Terms, Total Reads: 1635

Definition: Agency Shop

In terms of the agreement between management and the union a non-union member has to pay the union a sum equivalent to a member’s subscription in order to continue employment with the employer. This is called an agency shop. In other words, requires the payment of union dues but gives workers the option of joining union. “We just need your money.”

The aim of an agency shop is to ensure that a non-union employee, who receives all the same benefit from the union’s bargaining efforts do make contribution in those efforts. This is a particular form of union security arrangement,

• In terms of which all employees within a particular bargaining unit

• Are required either to belong to a particular trade union

• Or to pay an agency fee to it.

• This type of arrangement is usually contained in a collective agreement.


An agency shop agreement is different from closed shop agreements as that they do not directly compel the workers to join a particular trade union.


Hence, this concludes the definition of Agency Shop along with its overview.

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