The law also requires the FWC to authorize an enterprise agreement if certain requirements are met. Such a requirement is that the agreement “must have been truly accepted by the workers covered by the agreement”: section 186, paragraph 2, point a). In the decision against ALDI, the High Court confirmed that this applies only to current workers who are covered by the employee classifications defined in the agreement. The voting process is an important part of enterprise bargaining. This process allows all workers covered by the proposed agreement to accept or not accept negotiated terms of employment. What is an enterprise agreement (sometimes called EBA)? An enterprise agreement (“EA”) is a legislated agreement between an employer and a group of workers that, in its in progress, replaces an applicable industrial premium. Within 14 days of the agreement being reached, a negotiator of the agreement must submit the FWC agreement for approval. To be approved, the agreement must pass the Better Off Combination Test (BOOT). An enterprise agreement will occur on the BOOT if the FWC is satisfied that each of the workers covered by the agreement is generally better placed than under the corresponding premium. An enterprise agreement must not contain illegal content.

However, an enterprise agreement has several potential drawbacks: in ALDI Foods Pty Limited/SDA [2017] HCA 53 (ALDI), the High Court found (around [82]) that “an enterprise agreement can be concluded with two or more employees without green fields, provided they are the only employees at the time of the vote to be covered by the agreement. It does not matter that the agreement can apply to many more employees in a timely manner. For more information on how to negotiate in good faith and in companies that have proven themselves, see the Ombudsman`s Guide to Good Practice for Fair Work – improving productivity at work in negotiations. The Fair Work Act 2009 provides a simple, flexible and fair framework that helps employers and workers negotiate in good faith to enter into an enterprise agreement. The agreement approved by the FWC will be put into service seven days after its approval by the FWC or at a later date set out in the agreement. If the parties fail to agree on the terms of a proposed enterprise agreement, a representative of the negotiations may ask the Commission for assistance in fair work. Under Section 173 of the FW Act, departments and agencies are required to submit a communication on representation rights (Communication) to staff members covered by the rights to the omission of the agreement before negotiations begin. This is a mandatory step. Modern rewards cover an entire sector or profession and provide a safety net between minimum wage rates and employment conditions. Business agreements can be tailored to the needs of some companies.

In a nutshell – Section 172 (6) of the Fair Work Act 2009 (Cth) (the law) provides that an enterprise agreement cannot be entered into with a single worker. Does this mean that an enterprise agreement with at least two employees is allowed? Under the Fair Work Act 2009, contracts continue to apply after their nominal expiry date until they are replaced or terminated by a request to the Commission. The provisions of the Fair Labour Act 2009 (transitional provisions and subsequent amendments) continue to serve as transitional instruments based on agreements.