💼intro to business review

Management rights clause

Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025

Definition

A management rights clause is a provision in a labor contract that outlines the specific functions and rights reserved for management, including decisions on directing the workforce, setting work schedules, and determining job assignments. It establishes the boundary between actions that require negotiation with the union and those that can be made unilaterally by management.