Workforce Agreement

Posted in Human Resource Terms, Total Reads: 320

Definition: Workforce Agreement

Workforce Agreement is a written agreement between employer and employees related to work timings, terms of work, conditions of work, work environment, compensation etc. Generally, the workforce agreement will be signed between employer and elected representatives (or union leaders) of its employees (or employees themselves in case of small number of employees). The workforce agreement is normally a formal written document containing certain terms and it is formally lodged with an authority. They stand in place of awards, but employers can modify certain terms in the document which do not suit their business needs, until the employees have no objection from it.


In a workplace generally there will be many disputes arising between the employer and employees. And when the employees raise the dispute to the management, the management follows systematic procedure to resolve the issues. The issues can be resolved using methods of conciliation, arbitration and adjudication. Here both parties negotiate regarding the dispute and come to a conclusion. This process ends with the written agreement (workforce agreement) between employer and employees (union leaders).

Once the document is signed by both parties, they should abide by it. Hence, this process is very helpful in resolving the disputes in the workplace and enhancing the productivity and maintaining employer-employee relationships. The signed workforce agreement covers all the relevant employees and it will be valid for a fixed term or for the time agreed during the negotiation.


Some examples of workforce agreements include: agreement related to the manpower required to do particular job, agreement related to additional or overtime working hours, agreement related to yearly bonus, agreement related to certain facilities provided at the workplace etc.

Hence, this concludes the definition of Workforce Agreement along with its overview.


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