The generic term refers to agreements between trade unions and employers or employers` organisations (see the capacity of the collective agreement) to regulate both individual and direct employment relations between the signatory parties (see below, content). The Portuguese Constitution lays the foundations for the legal institutionalisation of collective bargaining in order to confer on trade unions the competence to exercise the right to bargain (Article 56(3)(4)). The normative effects of collective agreements are expressly recognized by law (article 12 of the Employment Contracts Act), which places them among the legal sources of employment contracts (see sources of labour law). Therefore, the provisions of the collective agreements apply directly to the various employment relationships and replace all contractual conditions that are less favourable to the workers concerned. The recognition clause defines the status to be granted to the union throughout the duration of the agreement. It may provide for a closed store, a union shop or another variant of union security. Invalidity Employers and workers, whether isolated or as representatives through trade unions and employers` organizations, have the right to bring an action before industrial tribunals seeking the invalidation of clauses contained in the instruments of collective labour regulations which, in their opinion, infringe the law (article 43 of the Law on Collective Labour Relations). Horizontal and vertical collective agreements The Employment Relations Act distinguishes between horizontal collective agreements, i.e. occupational agreements, which cover a group of workers identified in relation to a given occupation or occupation (e.g.B. an agreement for pilots) and vertical collective agreements, i.e.
sectoral agreements that govern workers` employment and employment relations, identified in respect of all workers employed in a given sector (e.g. Β an agreement for the textile industry or the banking sector). Article 12 of the Act gives priority to vertical agreements and provides that they will enter into force after their publication and terminate horizontal agreements even if their minimum legal duration is not yet respected. . . .