Scope of collective labor agreement and mandatory industry pension fund

The mandatory participation in a pension fund determines whether a company is required to join an industry pension fund based on its activities. Similarly, the scope of a collective labor agreement determines whether the company falls under it. Both can have significant implications for the company.

If joining a pension fund is mandatory, the pension for employees is established by law, regardless of whether contributions have been paid. Pension funds therefore have a strong interest in collecting contributions, sometimes retroactively up to 20 years.

Under a collective labor agreement, employees can file claims for vacation days and overtime, as well as for compliance with a specific job classification and the associated salaries and increases. Training funds and social funds can also file claims. Like collecting contributions, claims can have retroactive effect.

Analysis of obligations

The obligation to join is often presented as a fait accompli by collective labor agreement parties and pension funds. Independent expertise is essential to assess this and, if necessary, to challenge it. In both cases, a targeted approach is needed, where the company’s activities are thoroughly examined, usually during a company visit.

Determining whether a company falls under the scope of a collective labor agreement requires specific expertise in employment conditions and experience in collective labor agreement law. Specialized knowledge is also needed for mandatory participation decisions of industry pension funds, as these are often deliberately broadly formulated and difficult to read; moreover, developments in case law must be closely monitored.

Analysis of financial consequences

If a scope or mandatory participation might apply, the company needs to know the financial impact. Therefore, we calculate the financial obligations that could arise from it, both for the future and retroactively. We also look at your current pension scheme and the contributions you have made for it in recent years.

Proven expertise

Our consultants have been involved in many high-profile cases that have emerged on this topic in recent years. They have therefore built up a lot of experience and can responsibly assist you with these issues.