New Rules: Enterprise Agreements

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Here's a quick recap on the new rules surrounding enterprise agreements and bargaining that came into effect on 6 June 2023.

So what are enterprise agreements?

They are legal documents that set out the minimum employment terms and conditions for the employees and employers that they cover.

Enterprise bargaining is:

The formal process of negotiating with the sole intention of making an enterprise agreement.
This bargaining process generally occurs between an employer and their employee, or any relevant representatives.

While these agreements are only relevant to those that they cover, it is still important to be aware of these new changes!

Why are the rules changing?

These changes were originally introduced as part of the Secure Jobs, Better Pay amendments to the Fait Work Act.
Essentially, these changes allow for improved access to enterprise agreements and bargaining, including the removal of barriers to multi-employer bargaining.

What are the changes?

Changes to the better-off overall test (BOOT) as well as the introduction of a statement of principles that the Commission must take into account when determining if the agreement has been genuinely agreed to by employees.
There are now 3 types of multi-enterprise agreements, which are;
- single interest employer agreements
- supported bargaining agreements
- cooperative workplace agreements
Any relevant requirements must be met before a vote can be taken on a new or variation to an enterprise agreement.

Please note: single enterprise agreements are the most commonly used type of enterprise agreement. As such, the only changes to these agreements are in relation to the BOOT test.

Importantly, from 6 June 2023, there will also be changes to:

bargaining disputes
industrial action (protected action ballots).

For more information, click here.

If you have any questions about the recent changes to enterprise agreement-making, please email the Employii team at [email protected].

Author: Chelsea Finlay (HR Officer).

New Rules: Enterprise Agreements

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