Journal of Legal Research

Journal of Legal Research

Voluntary Dissolution of Collective Agreements

Document Type : Original Article

Authors
1 Professor, Department of Private and Islamic Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.
2 PhD Student in Private Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.
Abstract
Given the differing views on the legal nature of composition agreements and collective bargaining agreements, together with the ambiguity surrounding the rules governing their dissolution, an important question arises as to whether the intention of one party, or the mutual intention of both parties, may, beyond the cases expressly provided for by law, bring about the dissolution of such legal relationships. In addressing this question, the present study examines the principal doctrinal approaches relating to the legal nature of these institutions and ultimately adopts the view that both composition agreements and collective bargaining agreements should be regarded as contractual in nature and as two prominent examples of collective agreements within Iranian law. On this basis, the article argues in favor of the applicability, mutatis mutandis, of the general rules governing contractual dissolution to these agreements. The study further demonstrates that, due to the distinct juridical foundations underlying each ground for voluntary dissolution and the differing legal analyses concerning the relationship between the rights of the parties and those of third persons, each mechanism of dissolution must be examined independently. In this regard, the article concludes that the statutory grounds for termination of composition agreements are not limited solely to the cases expressly stipulated by law. Rather, all legally recognized options of rescission (khiyārāt) may, where their legal conditions are satisfied, serve as valid grounds for terminating a composition agreement. Nevertheless, the study maintains that no voting threshold short of unanimous consent among creditors should be considered sufficient to validate such rescission. Furthermore, termination of a composition agreement on the basis of an optional condition (khiyār al-sharṭ), a resolutory condition (sharṭ-e fāsikh), or rescission by mutual consent (iqālah) should not be regarded as legally valid, irrespective of any majority approval. Collective bargaining agreements, however, are not subject to the same restrictions. Provided that the will of the syndicate or labor union is exercised in accordance with its internal regulations and governing procedures, such intention may validly operate through any of the recognized mechanisms of voluntary dissolution and thereby bring about the termination of the collective agreement.
Keywords

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