Enterprise agreement

How does an enterprise agreement relate to the award?

While in operation, the agreement displaces the award for the employees it covers, but two floors remain: the NES always apply, and the agreement must pass the Better Off Overall Test against the relevant award at approval. The base rate of pay can never fall below the award's. In exchange for that scrutiny, the employer gets terms tailored to its operation and a period of industrial stability.

How is one made and approved?

Bargaining follows the Act's good-faith bargaining requirements, employees vote, and a majority of those who vote must approve it. The agreement then goes to the FWC, which checks genuine agreement, the BOOT and mandatory terms before approval. Agreements have a nominal expiry of up to four years but keep operating after expiry until replaced or terminated.

When does an enterprise agreement make sense?

When the award genuinely fits the operation badly: rosters the award structure penalises, allowances that make no sense for the work, or a need for multi-year certainty on labour cost. An agreement that simply replicates the award adds process without benefit; the value is in the tailoring, priced honestly against the BOOT.