recognition
Definition
Recognition is the formal acceptance by one party that another party has a certain legal status, right, or authority. In a business context, this often comes up when a company officially acknowledges a labor union as the legitimate representative of its employees, which then requires the company to negotiate with that union.
Example
If enough of your employees sign cards supporting a union and the National Labor Relations Board certifies it, you would be required to grant recognition to that union and begin bargaining with them over wages and working conditions.
Watch Out
Once you grant recognition to a union, you are legally obligated to bargain with them in good faith, so refusing or delaying that process can expose your business to serious legal penalties.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.