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Legal Terms - closed-shop contract
a collective bargaining agreement mandating that employees in a given group join or become members of a specific trade union. A pre-entry agreement forbids an employer from hiring a suitable candidate unless that candidate is already a member of the relevant union. Under a post-entry agreement, workers must enlist in the designated union within a predetermined window of time following the start of their job.
All employees are free to join a trade union if they so want under the Trade Union and Labour Relations (Consolidation) Act of 1992. Employees can file a complaint with an employment tribunal, which has the authority to order the employer to compensate them, if they are subjected to any action by their employer—apart from termination—to impose their union membership. It is automatically unfair to fire someone for not being a member of a trade union. There are unique minimum rates of *compensation payable in this situation. Employers can join the union as a party to the dismissal proceedings and transfer the obligation to pay compensation to the union if, as a result of trade union pressure, they fire an employee for not being a member of a union.
When a union uses industrial action to impose a closed shop, it forfeits the protection against lawsuits it would have had if the action had been taken in support of a *trade dispute.
Because of this legislation, closed-shop agreements are no longer enforceable by unions or employers, even though they are not illegal in and of themselves. As a result, they may be considered illegal.
a collective bargaining agreement mandating that employees in a given group join or become members of a specific trade union. A pre-entry agreement forbids an employer from hiring a suitable candidate unless that candidate is already a member of the relevant union. Under a post-entry agreement, workers must enlist in the designated union within a predetermined window of time following the start of their job.
All employees are free to join a trade union if they so want under the Trade Union and Labour Relations (Consolidation) Act of 1992. Employees can file a complaint with an employment tribunal, which has the authority to order the employer to compensate them, if they are subjected to any action by their employer—apart from termination—to impose their union membership. It is automatically unfair to fire someone for not being a member of a trade union. There are unique minimum rates of *compensation payable in this situation. Employers can join the union as a party to the dismissal proceedings and transfer the obligation to pay compensation to the union if, as a result of trade union pressure, they fire an employee for not being a member of a union.
When a union uses industrial action to impose a closed shop, it forfeits the protection against lawsuits it would have had if the action had been taken in support of a *trade dispute.
Because of this legislation, closed-shop agreements are no longer enforceable by unions or employers, even though they are not illegal in and of themselves. As a result, they may be considered illegal.
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