The Collective Agreement Act (here-in-after referred to as the Act) is enacted to regulate the bargaining procedures and effect of collective agreement, stabilize labor relations, promote labor-management harmony, and protect rights and interests for the labor and the management.

Collective agreement referred to in the Act is a written agreement which is concluded by an employer or employer organization with juristic person status and a labor union established in accordance with the Labor Union Act for the purpose of governing labor relations and other related matters.

Stipulations in a collective agreement which contravene with the imperative or prohibitive provisions of statutes shall be null and void; except nullity and voidance are not implied in the provisions.

When there are more than two collective agreements applicable, unless it is particularly stipulated by the agreement which has become effective first, the collective agreement applicable to the occupation which is more limited in scope or the type of job which is more special shall be given the priority; if the collective agreement is not for the purpose of governing occupation or job, the agreement applicable to a larger area or more persons shall be given the priority.

The competent authority referred to in the Act is the Ministry of Labor at the central level; municipal city governments at the municipal level and county(city) governments at the county (city) level.