CAO
collective labour agreement (CAO)
An agreement on terms of employment between employers' organisations and trade unions.
A collective labour agreement (CAO) is an agreement on employment conditions that is concluded between employers' organisations and trade unions. The collective labour agreement (CAO) determines, among other things, minimum wages, working hours, holiday days, pension schemes and allowances for an entire industry or company. A collective labour agreement (CAO) can be declared generally binding by the minister, as a result of which it applies to all employers and employees in the relevant sector.
“The collective labour agreement (CAO) determines the minimum wage and vacation days in a sector.”
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