Enterprise Agreements

An Enterprise Agreement is the name given to the document setting out the terms and conditions of employment at a particular workplace which has been negotiated between employers, employees and their bargaining representatives via the collective bargaining process.

The Fair Work Act has changed many of the rules relating to Enterprise Agreement making and compliance with the new rules is essential. Employers should note the following:

  • Existing Enterprise Agreements will remain valid until their expiry. However, where the National Employment Standards are more generous than the conditions set out in an existing Enterprise Agreement, the National Employment Standards will apply. Employers should check existing Enterprise Agreements carefully to ensure they are complying with the National Employment Standards.
  • It is no longer possible to make registered agreements with individual employees.
  • Under the new system employees and employers are entitled to be represented by a ‘bargaining representative’ during the negotiation of a new Enterprise Agreement. The representative may be any eligible person appointed in writing. Employers are required to negotiate with employees’ bargaining representatives in ‘good faith’ and must inform employees of their right to appoint a bargaining representative.
  • All new Enterprise Agreements must be approved by Fair Work Australia before they can commence operation and there are now different rules about terms that Enterprise Agreements must and must not include.

It is recommended that employers in small to medium businesses seek legal advice before seeking to implement a new Enterprise Agreement for their business.

 

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