Enterprise agreements are collective agreements made at an enterprise level between employers and employees about terms and conditions of employment. The Fair Work Commission can provide information about the process of making enterprise agreements, as well as assess and approve agreements. We can also deal with disputes that occur about the terms of agreements.
An enterprise agreement can be made between one or more employers and two or more employees with their chosen representatives.
In the case of a greenfields agreement, where there are no employees employed, the employer negotiates with one or more relevant employee organisations (unions).
Modern awards cover a whole industry or occupation and provide a safety net of minimum pay rates and employment conditions. Enterprise agreements can be tailored to meet the needs of particular enterprises.
Enterprise agreements usually include a broad range of matters such as:
They cannot, however, include unlawful content (such as discriminatory or objectionable terms).
Approval processes for enterprise agreements vary depending on the type of agreement.
There are 3 types:
Under the Fair Work Act 2009, agreements continue to operate after their nominal expiry date until they are replaced or terminated by application to the Commission. Through provisions in the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009, agreements made under previous legislation continue to have effect as agreement-based transitional instruments.