Collective contracts generally stipulate all employees in a certain industry, covering a wide range. Format contracts are generally stable, not as flexible as contracts signed by individuals through consultation. According to the change of industry and the employment law of most employees, it is more appropriate to set the upper limit of three years. If it is too long, it will become rigid, but it will solve unfavorable problems and protect workers.

According to the Labor Contract Law of People's Republic of China (PRC).

Chapter V Special Provisions

Section 1 Collective Contract

Article 51 On the one hand, employees of an enterprise and the employing unit can conclude a collective contract on matters such as labor remuneration, working hours, rest and vacation, labor safety and health, insurance and welfare through equal consultation. The draft collective contract shall be submitted to the workers' congress or all the workers for discussion and adoption.

The collective contract shall be signed by the trade union on behalf of the employees of the enterprise and the employer; Where a trade union has not been established, the superior trade union shall guide the representatives elected by the employees to conclude with the employer.

Fifty-second enterprise employees and employers can conclude special collective contracts such as labor safety and health, protection of women employees' rights and interests, and wage adjustment mechanism.

Article 53 Trade unions in areas below the county level may sign industrial collective contracts or regional collective contracts with representatives of enterprises in construction, mining, catering and other industries.

Article 54 After a collective contract is concluded, it shall be submitted to the labor administrative department; If the labor administrative department does not raise any objection within fifteen days from the date of receiving the text of the collective contract, the collective contract will take effect.

Collective contracts signed according to law are binding on employers and workers. Industrial and regional collective contracts are binding on local employers and workers in this industry and region.

Article 55 The standards of labor remuneration and working conditions in a collective contract shall not be lower than the minimum standards stipulated by the local people's government; The standards of labor remuneration and working conditions in the labor contract concluded between the employer and the employee shall not be lower than those stipulated in the collective contract.

Article 56 If an employer violates a collective contract and infringes upon the labor rights and interests of employees, the trade union may require the employer to bear the responsibility according to law; Disputes arising from the performance of the collective contract cannot be resolved through consultation, and the trade union may apply for arbitration or bring a lawsuit according to law.