The article analyses the institutional basis and form of the employment con
tract in Britain using the 1998 Workplace Employee Relations Survey. It ass
esses the extent to which collective bargaining still regulates pay and non
-pay aspects of employment. While collective procedures have declined in im
portance, there has been an increase in legal governance of the employment
relationship. Logistic regression analysis establishes that both contractua
l formalization and legal compliance are greater in larger organizations an
d where trade unions are present. Trade union activity is also associated w
ith superior fringe benefits. Collective bargaining thus appears to facilit
ate both access to and improvement on statutory rights.