An enterprise agreement (or collective agreement) is an agreement made between a national system employer and some or all of its employees who are employed at the time the agreement is made. The agreement regulates minimum wages and employment conditions.
There are three types of enterprise agreements: single-enterprise agreements, multi-enterprise agreements, and greenfields agreements.
A single interest declaration (also known as a single interest employer authorisation) is a declaration that entitles multiple employers to use one enterprise agreement.
A multi-enterprise agreement is an agreement between two or more employers and their employees. The employers must:
- not qualify as single-interest employers;
- conduct the same type of business; and
- wish to offer the same working conditions to their employees.
A greenfields agreement is an agreement you may wish to enter into if you are establishing or propose to establish a new enterprise (either alone or with other employers) and you have not yet employed anyone. This agreement will set out the terms and conditions of employment for your future employees.
The type of agreement you will need to use depends on whether your business already exists or has not yet employed anyone.
The Fair Work Act 2009 (Cth) (FW Act) governs the requirements for making enterprise agreements.
However, enterprise agreements that are not made under the FW Act operate as unregistered or common law agreements. While you will not face a penalty under the FW Act if you breach an unregistered or common law agreement, there may be other legal risks of doing so. Seek legal advice if you no longer wish to be bound by the terms of an unregistered or common law agreement.
Top stories for Enterprise Agreements
Your questions answered: Do we have to pay wages early if the normal pay date falls on a weekend or public holiday?
Q: When an employer pays its employees on a monthly basis, is there an obligation to pay on the same...
Your questions answered: Can we change our employees’ hours?
Q: Under the enterprise agreement, any change to part-time hours can only be made by mutual agreemen...
EBAs finally made easier for business
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Articles
Your questions answered: Can we change employees’ hours?
Q We are in the process of relocating one of our centres. As part of this relocation, we are extending the operation hours of the centre. We have 13 part-time employees at our centre. They are all employed under an […]
Terminating an old enterprise agreement doesn’t undermine bargaining for a new one
If an enterprise agreement has passed its nominal expiry date, it will continue to operate unless terminated or replaced. However...
EBAs finally made easier for business
The Federal Government has finally passed legislation to give the Fair Work Commission the capacity to overlook minor procedural or technical errors when approving an enterprise agreement.
Your questions answered: Can we change our employees’ hours?
Q: Under the enterprise agreement, any change to part-time hours can only be made by mutual agreement. Is there any other lawful option to change these?
Your questions answered: Do we have to pay wages early if the normal pay date falls on a weekend or public holiday?
Q: When an employer pays its employees on a monthly basis, is there an obligation to pay on the same day of the month every month? What about Weekends?
Employer ordered to pay $40K for breach of agreement
It is not uncommon for union bargaining representatives to seek the inclusion of ‘job security’ clauses in enterprise bargaining agreements (EBAs). These clauses prevent the employer from using third party contractors in a way that might undermine job security […]
Why make an enterprise bargaining agreement?
If you operate in a large organisation, an EBA can be a more efficient means to regulate employment, rather than having a myriad of individual employment agreements.
When will loaded-up rates in an agreement pass the BOOT?
Recently, the FWC issued a ruling that provides guidance as to how they will assess an agreement containing loaded rates in substitution for award penalty rates.
Company breaches its casual conversion clause, hit with compensation
A worker who refused a permanent part-time role with fewer hours per week than he was receiving as a casual, has won compensation from the Federal Court.
Be wary of ‘union meeting’ clauses in EBAs
In late 2016, a union organised a campaign against a builder who was principal contractor at nine construction projects in the Brisbane metropolitan area. This conduct is ordinarily unlawful under the Fair Work Act 2009 (Cth), however...
