Enterprise Agreements

The Fair Work Act 2009 creates a new framework for enterprise bargaining, but it does not use the concept of unions or non-union agreements. Instead the agreement is made when it is approved by a valid majority of the employees to whom it will apply. A union that acted as a bargaining representative during the negotiations may apply to be covered by the agreement.

The new framework is based on good faith bargaining and recognises that most workplaces do bargain in good faith, without any intervention. Fair Work Australia ensures compliance for those who do not bargain with good faith. It does this by assisting negotiating parties to bargain in good faith, and it does have the power to make orders to address a breach of the good faith obligation.

Bargaining for single interest employers

Single interest employers are the principal category of bargaining at the level of the enterprise. They include: joint ventures, common enterprises, related bodies corporate and employers specified in a single interest employer authorisation or declaration. In this single interest bargaining stream, employees have the right to take protected industrial action if they are genuinely trying to make agreements at the enterprise agreement.

Multi-enterprise agreements

These agreements can be made between two or more employers and their employees, and they effectively remove the current concept of 'multi-business agreements' but without the need to get a public interest authorisation.

Good faith bargaining orders

When bargaining a proposed enterprise agreement the act sets out the good faith bargaining requirement which include: attending and participating in meetings at reasonable times; disclosing relevant information; responding to proposals; giving genuine consideration to the proposals of others and giving reasons for responses to those proposals; and refraining from capricious or unfair conduct that undermines freedom of association or collective bargaining.

If you'd like more information on enterprise agreements, please call us on 1300 QUINNS (1300 784 667) or +61 2 9223 9166 or complete and submit the Express Enquiry form on the top right hand side of this page and we will contact you to discuss your enquiry.

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