A trade/labor union is deemed recognized when an employer agrees to negotiate with the union on matters of pay and working conditions for the workers represented by the union. Recognition may be voluntary or statutory. Voluntary recognition implies an employer agrees to recognize a union without the use of any legal procedures. Statutory recognition implies a union must make an application to be recognized. In most countries, certain conditions must be met before a union can be recognized in a statutory sense. The main exception to this is Scandinavian countries, where an automatic legal right to representation exists.
Once a trade union is recognized, either voluntarily or by statutory means, employers are typically bound to fulfill certain duties. Typically, collective bargaining procedures must be agreed and the coverage of any agreement is defined. Bargaining procedures may include; how and when meetings are arranged; names of employer and union.