By: Alfredo Roque
In the Nicaraguan labor environment, both the Internal Labor Regulations and the Collective Agreement play crucial roles in the regulation of labor relations. These documents are essential tools that directly impact employers and workers, but it is crucial to understand their fundamental differences to ensure a harmonious work environment in compliance with current legislation.
Internal regulations:
The Internal Labor Regulations are internal regulations prepared by the employer that establish the rules and conditions for the development of work within the company. This regulation is more general in nature and applies to all employees of the organization.
The Internal Labor Regulations are created unilaterally by the employer and are implemented without the need for negotiation with the workers. Its entry into force is immediate, and is maintained until it is modified or repealed by the employer.
The provisions of the Internal Labor Regulations apply uniformly to all employees of the company, regardless of their union affiliation.
The stipulations of the Internal Labor Regulations can be modified unilaterally by the employer, although they usually require prior communication and, in some cases, consultation with the workers.
Collective agreement:
On the other hand, the Collective Agreement is a written agreement between an employer or group of employers and one or more worker organizations. It has a more specific scope, as it is negotiated with unions and addresses particular working conditions.
The Collective Agreement is the result of negotiations between the employer and union representatives. It requires the will of both parties and its validity is usually established in the agreement, generally not exceeding two years. It may be reviewed prior to termination if there are substantial changes in socioeconomic conditions.
The clauses of the Collective Agreement are binding on all workers included in the specific categories and companies detailed in the agreement, even if they are not members of the union. Any modification during its validity must be the result of negotiations between the parties.
If its term expires without a review request, it is automatically extended for an equal period.
Understanding the differences between the Internal Labor Regulations and the Collective Agreement is essential for employers and workers. Both instruments seek to regulate labor relations, but their scope, forms of creation and applicability vary significantly. Proper advice on these aspects will contribute to a fair work environment in compliance with Nicaraguan regulations.
For more information on this and other legal issues, contact LatinAlliance Nicaragua, Lawyers and Notaries, to the following email address: aroque@latinalliance.co