Handling an Enterprise Agreement

An Enterprise Agreement (EA) is a negotiated agreement between the employer and the employees or their representatives. This agreement is company-specific. It is drafted to suit the needs of both parties. For the agreement to be valid and for it to eventually take effect, a ballot process must show that it has been approved by a majority of the employees who have valid votes. 

Some of the benefits of an Enterprise Agreement, also referred to as enterprise bargaining agreement, include stability for your business. An EA can help you have stable workplace conditions and wages set for even up to four years. An EA can also help you provide more work and career opportunities for your employees; and also, an EA can help you provide a range of non-monetary and monetary benefits. 

At the same time, an enterprise bargaining agreement should be flexible enough to help you and your employees arrive at a win-win agreement that lets you achieve your operational requirements and lets your employees achieve some measure of their work/life requirements.


An enterprise bargaining agreement also simplifies and puts into one easy to comprehend agreement several layers of awards, including compliance, Modern Awards and the like and allows you to manage your staff more efficiently because the consolidated rates of pay makes it easier for you to predict labor costs and lets you roster more staff during busier schedules.  

Assistance in drafting EAs are just among a number of areas or issues under employment law that a number of human resources services providers offer. Other services include recruitment and payroll, compliance, legal advice and representation, training and industrial relations. These providers typically also have a team for employment law and specifically for making an enterprise bargaining agreement. 

Making an EA includes good faith bargaining, legal advice and representation at the national tribunal called Fair Work Australia, advice and updates on changes in federal and state laws, and drafting and lodging EAs that are fair and that suit your company’s and your employees’ needs.

Take note that state laws on employee compensation, training arrangement, equal opportunity, child labor, discrimination will not be overridden by any EAs. These agreements are under the Fair Work system, Australia’s new national workplace relations system which was created by the Fair Work Act of 2009. This act covers most of Australia’s work places.

The national tribunal for workplace relations is Fair Work Australia which is an independent body that oversees issues and suits on enterprise bargaining, employment conditions, industrial action, minimum wage, termination as well as resolution of disputes and other workplace-related issues.

The frequent changes in regulations and employment laws, in particular, pose a challenge to many companies and most of the time, they find it smarter, more cost-effective and more convenient to outsource and seek the advice of experts that can guide them with the changes in the laws and also help the company craft a tailored and well thought out enterprise agreement and as well as navigate even the future changes in employment laws.

Resource:
Hannah Miles is a HR specialist, who provides legal advice in managing an employment contract in Australia. We provide guidance and representation with regards to employee relations, letter of appointment and workplace law.