Employers and employees can make:
- Single-enterprise Agreements between a single employer and their employees;
- Multi-enterprise Agreements between more than one employee and their employees.
- Greenfields Agreements for new enterprises (i.e. a new business, new activity, new project or undertaking).
An employer will be able to make Greenfields Agreements with the relevant union(s) prior to employees being engaged to work.
Individual agreements (such as AWAs) are not available.
There is no distinction between union and non-union agreements.
An enterprise agreement must contain the following terms:
- The National Employment Standards;
- A nominal expiry date of no later than 4 years;
- A dispute settlement procedure;
- A flexibility term enabling an employer and employee to agree to an arrangement that varies the agreement to meet the genuine needs of the employer and employee;
- A consultation term requiring an employer to consult with employees about major workforce changes which are likely to have a significant impact on employees; and
- No terms that break any laws.
In order to enter into an enterprise agreement, the following steps must be taken:
- The employer must notify employees of their right to be represented by a bargaining representative;
- Employees must be provided with a copy of the proposed enterprise agreement;
- The employer must take all reasonable steps to explain the terms of the agreement to employees; and
- A majority of employees who cast a valid vote must vote in favour of the agreement (or in the case of a Greenfields Agreement, a representative of the employer and the union must sign the agreement).
The enterprise agreement must be lodged with Fair Work Australia ('FWA') for approval within 14 days of voting. In order to gain approval, the enterprise agreement must meet the 'better off overall test' (the 'BOOT'). To make sure your enterprise agreement complies always consult and employment solicitor.
