The historical and legal genesis of the development of the collective agreement institution in foreign countries and Ukraine has been analyzed. The possibility and expediency of implementing collective bargaining relations within a democratic state's market economy have been determined. Conclusions have been drawn that the collective agreement is currently one of the most important forms of social dialogue used at the local level to agree upon production, labor, socio-economic issues between its parties (employees and employers), particularly in the aviation sector. The primary purpose of the collective agreement is to provide additional and effective incentives for hired employees. Therefore, the terms of the agreement should ensure more incentivizing working conditions for employees compared to standard labor legislation norms. The current state of legislation on collective bargaining regulation of labor relations has been analyzed. The position on the need for its further improvement, taking into account the challenges of current realities related to informatization of the state and society and virtualization of legal relations, including labor relations (remote work, use of artificial intelligence at work, etc.), has been determined.