How Do Enterprise Agreements Work

The Fair Work Commission can also help employers and workers negotiate with their New Approaches programme. Read more about The New Approaches on the Fair Work Commission website. A multi-company agreement is concluded between two or more employers (not all of whom are employers with a single interest) and workers employed at the time of conclusion of the contract and covered by the agreement. Company agreements can benefit employers because they can negotiate more flexible working conditions. Similarly, employees can negotiate higher salaries and additional benefits that a Standard Modern Award does not offer. A company agreement is an agreement on permissible matters: in the context of Australian labour law, the 2005-2006 industrial reform, known as “WorkChoices”[3] (with the corresponding amendments to the Workplace Relations Act (1996), changed the name of these contractual documents to “Collective Agreement”. National labour legislation may also impose collective agreements, but the adoption of the workchoices reform will reduce the likelihood that such agreements will be concluded. While a company agreement must have a nominal expiry date within four years, the agreement will continue to be put into operation after that date until it is replaced by a new company agreement or terminated by the Fair Work Commission. . .

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