Why Do Managers and Professionals Have Individual Contracts Instead of Collective Agreements?

Why are managers and professional employees typically covered by individual contracts rather than by collective agreements?

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In many organizations, managers and professional employees have unique roles and responsibilities that may require specific terms and conditions of employment. Individual contracts allow for a more tailored approach to address these distinct needs, such as compensation structures, performance expectations, and confidentiality agreements.

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Collective agreements, on the other hand, are commonly used for bargaining unit employees who share similar job duties and are represented by a union. These agreements often focus on standardizing terms and conditions for a group of employees rather than addressing individual circumstances.

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By utilizing individual contracts for managers and professional employees, organizations can better align employment terms with the specific requirements of these roles, ultimately leading to clearer expectations and potentially reducing conflicts in the workplace.

Usually, job or contract terms are the same; only the pay structure differs, excluding differences in work nature. If companies have a style of 'management by difference,' they might use individual contracts, but work and performance management are in favor of the organization and professional growth as a whole and from a long-term perspective.

Collective agreements may be applicable to groups following the same terms with the employer.

Why are managers and professional employees typically covered by individual contracts rather than by collective agreements?

Managers and professional employees are covered by individual contracts for the following reasons:

- Different job profiles
- Pay structure according to market conditions
- Different terms and conditions of employment come into force as per the requirements.

Collective agreements are made for a set of employees who do the same kind of work, like workers in a factory. Management would prefer to negotiate wages as a whole rather than with individuals.

Cheers,
Rajat

Namaskar.

And so, I am talking about something else - a horizontal working culture without jealousy. I think such a practice is yet to come.

Regards

Hi Prinzessin,

I too agree with what Rajat said. It is because in a company, different individuals have different jobs, job profiles, and designations. Additionally, it also depends on the culture. It may not be transparent, due to which collective agreements are not always possible to implement.

Dips