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Establishment of a collective labour contract takes place through so-called collective consultation between the two signatory parties. During the process of consultation, the company is represented by the legal representative, or by a designated representative. Employees are represented by the Trade Union. In case the company has yet to establish a Trade Union, the employees should elect their own representative, who must be approved by more than the half of the total number of employees.

The total number of representatives of each party participating in the collective consultation may vary between three and ten persons. Requirement is that the numbers of each of parties’ representatives are equal. Both parties’ teams are headed by a chief representative.

For a period of five years after they have been designated, the employee representatives will enjoy a protected status, during which the company cannot terminate their labour contracts, unless serious wrongdoings have been committed. These wrongdoings include serious violation of labour discipline or regulations, serious dereliction of duty, frauds that cause heavy losses to the company and criminal offenses.