Commentary on Ordinance No. 11211 of 2024: Provincial Agreements for Wage Realignment in the Agricultural Sector

The recent Ordinance No. 11211 of April 26, 2024, issued by the Court of Cassation, provides an important clarification regarding the legitimacy of company agreements that adopt provincial agreements for wage realignment in the agricultural sector. This decision falls within the regulatory framework outlined by Decree Law No. 103 of 2021, converted with amendments by Law No. 125 of 2021, and authentically interprets Article 10 of Law No. 199 of 2016.

The Regulatory Context and the Issue Addressed by the Ruling

The central issue concerned the validity of company agreements signed in the presence of the sole signature of the business association to which the signing company of the provincial agreement is affiliated. In particular, the ordinance clarifies that, based on the ius superveniens, such agreements can be considered legitimately entered into, even if signed after a certain date, as long as they are before the entry into force of the conversion law of the decree.

(BENEFITS, EXEMPTIONS, FACILITATIONS) Provincial agreements for wage realignment - Agricultural sector - Art. 3-ter of Decree Law No. 103 of 2021, converted with amendments by Law No. 125 of 2021 - Interpretation of Article 10 of Law No. 199 of 2016 - Ius superveniens - Company agreements adopting provincial agreements - Effects on such company agreements. Based on the ius superveniens referred to in Article 3-ter of Decree Law No. 103 of 2021, converted with amendments by Law No. 125 of 2021, in the authentic interpretation of Article 10 of Law No. 199 of 2016 regarding provincial agreements for wage realignment in the agricultural sector, company agreements adopting said provincial agreements must be understood as legitimately entered into even in the presence of the signature of the sole business association to which the signing company of the provincial agreement is registered, and if they provide for a gradual realignment program, they can be supplemented by agreements signed even after October 17, 2001, as long as they are before the entry into force of the conversion law of the aforementioned decree.

Implications of the Ruling for the Agricultural Sector

This ruling has several implications for the agricultural sector and the companies operating within it. First, it offers greater legal certainty regarding the validity of company agreements that adopt provincial provisions. Companies can therefore feel more secure in entering into such agreements, knowing that their validity is not compromised by the presence of a single business association.

  • Clarity on the legitimacy of company agreements adopting provincial agreements.
  • Possibility of supplementing agreements even after specific dates, increasing flexibility for companies.
  • Strengthening workers' rights through clearer and more accessible wage realignment.

Conclusions

In conclusion, Ordinance No. 11211 of 2024 represents an important step towards greater clarity in managing wage agreements in the agricultural sector. It not only provides clear guidance for companies but also helps to ensure the rights of workers, promoting a more equitable and just work environment. Companies and trade associations are therefore encouraged to consider the implications of this ruling in their future management of labor relations and wage agreements.

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