Scope of Collective Labor Agreements and Mandatory Participation in Industry Pension Funds
Whether a company is required to join an industry pension fund depends on the fund’s mandatory participation rules, based on the company's activities. Similarly, the scope of a collective labor agreement (CLA) determines whether a company falls under its application. Both can have significant legal and financial consequences.
If participation in a pension fund is mandatory, pension entitlements for employees are automatically established by law—even if no contributions have been paid. Pension funds have a strong interest in collecting premiums and may do so retroactively, sometimes going back as far as 20 years.
Under a CLA, employees may file claims related to vacation days, overtime, job classifications, and corresponding salaries and increases. Training and social funds may also submit claims. Like pension contributions, these claims may have retroactive effect.
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Obligation Analysis
The obligation to join is regularly presented by collective bargaining parties and pension funds as a fait accompli. Independent expertise is then essential to verify this and, if required, to defend against it. In both cases, a targeted approach is needed, involving a thorough review of the company's activities, usually during a company visit.
Determining whether a company falls within the scope of a collective bargaining agreement requires specific expertise and experience in the field of collective bargaining law. Decisions on compulsory levies by industry-wide pension funds also require specialized knowledge, as these are often deliberately broadly formulated and difficult to read; moreover, developments in case law must be closely monitored.
Financial Impact Assessment
When there’s a risk of falling under a CLA or pension fund obligation, it is vital to understand the financial impact. We calculate potential liabilities, both future and retroactive, taking into account your current pension plan and historical contributions.
Proven Expertise
Our consultants have been involved in many high-profile court cases in this field. Their experience ensures that you receive reliable, strategic guidance in navigating these complex issues.
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