Assisted by Holly Pitt
What is an enterprise agreement?
Simply put, an enterprise agreement is an agreement between an employer and its employees, which sets out the employment terms and conditions, in lieu of applicable modern award terms and conditions.
Enterprise agreements have to be approved by the Fair Work Commission to make sure that the terms in the agreement place the employees in a more advantageous position than they would have otherwise been in, had their employment terms and conditions still been regulated by the applicable modern award.
What do you need to be aware of?
Prior to an employee and employer commencing negotiations regarding the terms of an enterprise agreement, employers have a duty to take reasonable steps to notify all employees of their right to be represented during the negotiations (for instance, by a union). Notice must be given to all employees by distributing what's referred to as the 'Notice of Employee Representational Rights' (NERR), in the prescribed form (specified in Schedule 2.1 of the Fair Work Regulations 2009).
Recent amendments to the Regulations have changed the NERR's form and content. These changes took effect from 3 April 2017.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
