Collective bargaining contracts govern the rights and obliga­tions of employers and employees in many employment relationships.  These occur when a union negotiates on behalf of employees.  Collective bargaining involves representatives of the employees bargaining with a single employer or a group of employers for an agreement.  This agreement will cover such things as wages, hours, and working conditions for the employees.  The employees, of course, make up a union and elect members to represent, and negotiate for, them with the employer.  The National Labor Relations Act (NLRA) guarantees employees the right to form a labor union and requires employers to deal with a duly-elected union as the bargaining agent for the employees.  The NLRA prohibits employers from interfering with employees and from discriminating against an employee as a result of the employee’s  union activity.

In most instances, an employment contract will not state its expiration date.  In such a case, the contract may be terminated at any time by either party.  However, the contract may expressly state that it will last for a specified period of time such as a contract to work as a general manager for five years.