1. The purpose of the collective agreement is to determine the working and employment conditions of workers and to regulated relations between employers and workers as well as their respective organizations. The collective agreement can also extend its legally recognized roles to trade union organizations and improve the guarantees protecting workers against social risks.

2. The collective agreement is written agreement relating to the provisions provided for in Article 96-paragraph 1. The collective agreements is signed between:
a) one part: an employer, a group of employers, or one or more organizations representative of employers, and

c) the other part: one or more trade union organizations representative of workers. With derogations of the above principle, during the transitional period that there is no trade union organization representative of workers in an enterprise or establishment, a collective agreement can be made between the employer and the shop stewards who have been duly elected as per the conditions of Section III, Chapter XI.

3. The collective agreements is concluded for a definite term or for an indefinite term. When it is for a definite term, this term may not exceed three years. At its expiration, it shall remain in effected unless it has been cancelled, on the condition of keeping a three month’s notice, by either party. When the collective agreement is collective agreement is concluded by shop stewards under the exceptional conditions laid in paragraph 2 of this article, the term of such agreements is not exceed one year. When the collective agreement is concluded for an indefinite term, it can be cancelled, but it continues to be effected for a period of one year to the party that forwarded a complaint to cancel it. The notice of cancellation doest not prevent the agreement from being implemented by the other signatories.

Collective agreements shall specified their scope of application. This can be an enterprise, a group of enterprises, an industry or branch of industry, or one or several sectors of economic activities.

The provisions of collective agreements can be more favorable toward workers than those of laws and regulations in effect. However, the collective agreements cannot be contrary to the provisions on the public order of these laws and regulations.
Any provisions of labour contracts between employers and workers, already covered by a collective agreement, that are less favorable than the provisions provided for in this collective labour agreement s shall be nullified and must be replaced automatically by the relevant provisions of the collective agreement.

A collective agreement of an enterprise or an establishment can adapt to the provisions of a collective agreement covering the wider scope of application that is applicable to the enterprise under the specifies conditions of the enterprise or the establishment in question. The collective agreement of the enterprise or establishment can include new provisions and clauses that are more favorable to workers.

In the event of agreements covering the wider scope of applicable to an enterprise or establishment, the provisions of these agreements must be adapted accordingly by the collective agreement of the enterprise or establishment.

At the request of a professional organization of workers or employers that is representative in the relevant scope of application, or on its own initiative, the Minister in charge of Labour, after consultation with the Labour Advisory Committee, may extend all or some of the provisions of a collective agreement to all employers and all workers included in the occupational area and scope of this agreement.

In the absence of collective agreement, the Ministry in charge of Labour, after having received the approval from the Labour Advisory Committee, can issue a Prakas to lay the working conditions for a particular occupation.

The Prakas of the Ministry in charge of Labour shall determine:

a) the conditions and methods for implementing the procedure for extending the scope of application as specified in Article 99,

b) the conditions and methods for implementing the regulatory procedure set out in Article 100,

c) the methods or registering, filling, publishing and posting the collective agreements, and

d) the methods for monitoring the enforcement of those agreements, in case of necessity.