All employees of the town shall be governed by applicable state statutes relating to labor relations and employees of municipal bodies including, if applicable, negotiated contracts with union representatives for town employees. In the event a contract is executed between the town and any union representative for and on behalf of union employees of the town, the contract is to be included and considered part of this town municipal code. The contract will designate compensation and all benefits and work rules relating to the employees of the Town Council unless the contract violates state law as designated by the legislature of the state. In that event, the conflict shall be resolved by state law controlling.