Question 106: The purpose of CLA is to provide Employees with more benefits than required by the labour law. So, if after signing the CLA, Employers have no financial ability to pay these benefits anymore because of business difficulties. Are they entitled to unilaterally terminate the CLA? How are they sanctioned in case of no entitlement and no money to pay?
1.Are Employers entitled to unilaterally terminate the CLA if they no longer afford to pay Employees benefits according to the CLA? Pursuant to Article 73.1 of the Labor Code, a CLA is a written agreement between the labour collective and any Employer on labour conditions that the parties have achieved through collective bargaining in which…