How To Make an Enterprise Agreement

Enterprise agreement making is at the forefront of the new Federal workplace relations system. This How To guide establishes guidelines for managers to follow.

How to Make an Enterprise Agreement

What is an enterprise agreement?

An enterprise agreement refers to the terms and conditions set at an enterprise level between an employer and their employees. The Fair Work Act 2009 introduced Enterprise Agreements. A single enterprise agreement can be formed by one business or by a group of businesses. An agreement must be approved by and registered with the Fair Work Commission.

Why to have an enterprise agreement?

Enterprise agreements can have a huge benefit to both the employer and their employees in the business operations. Advantages like flexibility around working hours, parental leave, redundancy payments and conversions of casuals to permanent employment may be included in an agreement.

What if my organisation does not have an enterprise agreement?

There are 122 industry and occupation awards that cover most people working in Australia, which means many employees who aren’t covered by an agreement will most likely be covered by an award. Where no award or agreement applies, the minimum pay and conditions in the legislation will apply.

What do enterprise agreements cover?

• A nominal expiry date for the agreement
• A dispute settlement procedure
• Flexibility term including individual flexibility arrangements
• Consultation term describing the need of the employer to consult their employees about any major workplace changes
• Rates of pay
• Employment conditions
• How and when employees and their representatives will be consulted
• Dispute resolution procedures
• Deductions from wages for any purpose

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