Collective bargaining is an official process, in which employers go into a negotiation with a group of employees with an aim to regulate rights for workers, benefits, working conditions and salaries. This can be only possible if an employer agrees to recognise a trade union which then leads to a decision between the two.

Collective bargaining does not only cover the rights above, it also covers layoffs, hiring practises, disciplinary procedures and promotions. Going into collective bargaining does not only benefit the employee but it also protects employers to follow right practices; in an instance where unfair dismissal has taken place, the employer could end up at an employment tribunal. It is therefore important for all employers to introduce collective bargaining into their organisations.