Document background
The Collective Agreement Contract is a fundamental industrial relations instrument in Malaysia, required when an employer and a registered trade union agree to formalize their employment relationship. This document, governed by the Industrial Relations Act 1967 and related Malaysian legislation, serves as a comprehensive framework for workplace relations, employee rights, and organizational policies. It becomes necessary when a trade union has been accorded recognition and both parties have successfully negotiated terms through collective bargaining. The agreement typically remains valid for a specified period (usually 3-5 years) and must be registered with the Industrial Relations Department to be legally binding. It includes crucial provisions on wages, working conditions, benefits, and dispute resolution procedures, while ensuring compliance with Malaysian employment laws.
