Although the collective agreement itself is not applicable, many of the negotiated terms relate to wages, conditions, leave, pensions, etc. These conditions are included in a worker`s employment contract (whether the worker is unionized or not); and the employment contract is of course applicable. If the new conditions are not acceptable to individuals, they may be contrary to their employer; but if the majority of workers have agreed, the company will be able to dismiss the complainants, usually unpunished. The labour and employment legislation adopted by the Finnish parliament lays the foundations for collective agreements. As minimum wages are not set by Finnish labour and employment legislation, workers` wages are based on collective agreements negotiated by trade unions. In Sweden, about 90% of employees are subject to collective agreements and 83% in the private sector (2017).   Collective agreements generally contain minimum wage provisions. Sweden does not have legislation on minimum wages or legislation extending collective agreements to disorganised employers. Unseated employers can sign replacement agreements directly with unions, but many do not. The Swedish model of self-regulation applies only to jobs and workers covered by collective agreements.  The United States recognizes collective agreements   A collective agreement is a collective agreement between a union and an employer union on the conditions of employment observed in this area.
In Fibreboard, the Supreme Court held that an employer`s decision to allocate part of its activities, after its three-part analysis, was a mandatory bargaining topic. First, subcontracting is in the literal sense of the NLRA`s term „conditions of employment.“ Second, the fact that subcontracting is a subject of compulsory bargaining has an impact on the objectives of the NRL, putting „a crucial problem for work and management in the framework most conducive to industrial peace by Congress“ – collective bargaining. Third, other employers in the same sector have looked at contract awarding in negotiations, rather than leaving it to the discretion of management. In his agreement, Justice Potter Stewart added that issues „at the heart of corporate control,“ such as decisions on „investment capital commitment and the fundamental volume of the business,“ are not mandatory bargaining topics. The general term refers to agreements between unions and employers or employers` organizations (see ability to enter into collective agreements) to regulate both individual labour relations and relationships established directly between the signatory parties (see below, content). The Portuguese Constitution lays the groundwork for the legal institutionalization of collective bargaining by giving trade unions the power to exercise the right to negotiate (Article 56, paragraph 3, paragraph 4). The normative effects of collective agreements are expressly recognized by law (Article 12, Employment Contracts Act), which is one of the sources of employment contract law (see sources of labour law). Thus, the provisions of collective agreements apply directly to individual labour relations and replace all contractual conditions less favourable to the workers concerned.