What is the difference between a collective and an individual agreement?

Under the Employment Relations Act 2000, there are two types of employment agreements: individual employment agreements and collective agreements.

Individual employment agreements are negotiated between an individual and their employer, and bind only those parties.

Collective agreements are negotiated between a registered union and an employer. A collective agreement will only be binding on employees who are members of the union and whose positions are covered by the coverage clause of the collective agreement.

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