According to the TUI Act, when a collective agreement has been signed by the competent representatives in the private sector, it is valid from the date of signature unless otherwise agreed and unless it is rejected in a secret ballot by a majority of the votes cast, with the participation of at least one fifth of those on the voting roll or membership register within four weeks of the date of signature. If a general secret postal ballot is held its result shall be valid irrespective of the participation rate. If a collective agreement applies to only part of the union members or employees of an enterprise, it may be stipulated in the agreement that these persons only shall have the right to vote concerning it, provided it is stated clearly how the ballot is to be held.
The unions can decide upon their own to call for a joint ballot amongst all members of unions which are a party to the same collective agreement. Such an arrangement can also be a part of the negotiated conclusions in a collective agreement. If either party neglects to call a ballot within a four weeks’ period from signing, the collective agreement enters automatically into force. The CAPS Act is silent on how to verify a signed collective agreement in the public sector such as on the rules of voting. If the trade union’s rules do not contain clauses on the verification of a signed collective agreement, laws on work stoppage apply.