An extremely important aspect is the limitation of the effectiveness of collective agreements in relation to the individual employment contract. Under Article 14(1), employment contracts can always improve the conditions laid down in agreements, which means that they can never be regarded as absolutely peremptory standards for individual contracts. Individual autonomy can always improve in favour of the worker compared to the systemic system established by collective autonomy. As a legal reference, the collective agreement in Estonia is inferior to the law and superior to an individual employment contract in the hierarchy of legal sources. The provisions agreed in the collective agreement are binding on the parties who have concluded this agreement. According to § 2 of the Court of Auditors, an agreement less favourable to the employee than that required by law (i.e. a so-called derogating agreement), without effect, unless the possibility of an agreement on an exception is provided for in the EURH. Compared to the labour legislation in force until 2009 (which prohibited more unfavourable exemptions for the entire employee), the role of agreements has thus been extended. Although the legislator has not specified which contracts allow exceptions less favourable to the employee, the Court`s text specifies that this category includes an individual agreement between the employee and the employer, as well as a collective agreement. That principle is also supported by Article 4(2) of the CAA, according to which provisions of a collective agreement which are less favourable than what is required by law or by another legal act are invalid, unless the possibility of concluding such a contract is provided for by law. Thus, if one examines the Court`s text as a whole (including the provisions relating to divergent agreements) and starting from the explanatory memorandum of the text, it can be concluded that Article 2 of the Court sets out a general principle of derogation from the law; However, the specific agreement permitting a derogation from a particular piece of legislation to the detriment of the worker is determined by the same provision of the Court of Auditors which authorises such a derogation. Horizontal and vertical collective agreements The Industrial Relations Act distinguishes between horizontal collective agreements, i.e. occupational agreements covering a group of workers identified in relation to one or more particular occupations (e.g.

B, an agreement for pilots), and vertical collective agreements, i.e. sectoral agreements governing the employment and industrial relations of identified workers in relation to all those working in a particular sector of the economy (e.g. Β an agreement for the textile industry or for the banking sector). .