Even more specific is the issue of contract law, which governs collective agreements and individual employment contracts. Contract law imposes specific requirements and constraints on management and employee policies, procedures, and practices.

For example, a collective bargaining agreement is a contract regarding the terms and conditions of employment that both employees and employers must abide by legally.

In non-unionized situations, individual employment contracts are often signed prior to the commencement of the employment relationship and constitute individualized legal agreements that employees and employers must abide by. LO.1