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Enterprise Agreements

What is an enterprise agreement?

An enterprise agreement sets out the minimum conditions of employment for employees engaged in particular types of work in an enterprise. They are negotiated voluntarily between an employer and the employees concerned or a union on the behalf of those employees.

Can I have an enterprise agreement that gets rid of penalty rates?

A NSW Enterprise Agreement needs to be approved by the NSW Industrial Relations Commission. One of the principles for approval of an enterprise agreement is that there can not be a net detriment to employees compared to the relevant award.

I want an enterprise agreement to cover one employee?

There are no legislative restrictions on negotiating an enterprise agreement to cover only one employee. However, part of the process of getting an agreement approved at the Commission is a secret ballot to get 65% of employees affected to approve the agreement. You should contact the NSW Industrial Relations Commission on (02) 9258 0016 for clarification on this point.

How long does an enterprise agreement go for?

The enterprise agreement remains in place until terminated by the NSW Industrial Relations Commission. An agreement will stipulate a nominal term of no less than 12 months or more than 3 years, however the enterprise agreement will continue until rescinded by the NSW Industrial Relations Commission.

Is there any cost involved?

There is no monetary cost involved with the lodgment of an enterprise agreement at the NSW Industrial Relations Commission.

How long does it take to get approval of an agreement at the NSW Industrial Relations Commission?

The Industrial Relations Act 1996 requires that the NSW Industrial Relations Commission deal with applications for enterprise agreements within 28 days

How do I know if there is an Enterprise Agreement in the organisation?

An employer, before employing someone, must give the person notice that an agreement exists and access to a copy or summary of the agreement in a language that the person understands.

Does a copy of the enterprise agreement need to be available to the staff?

Yes. An employer needs to exhibit a copy of the enterprise agreement in a conspicuous place. If an employee cannot understand the language that the agreement is written in then an employer must also provide accurate, easy to understand summaries of the agreement in a language the employee understands

Can I get a copy of the enterprise agreement covering my employment?

Yes. The Industrial Registrar keeps a register of all enterprise agreements that have been approved by the NSW Industrial Relations Commission. The register of enterprise agreements is open to the public. It is possible to make copies of an enterprise agreement for a fee.

Is it possible to cancel an approved agreement?

Yes. Whilst the agreement is within its nominal term, agreement by both parties is needed to terminate. Once the nominal term has expired an agreement can be terminated by one of the parties giving the other party 3 months written notice of the intention to terminate.

The termination of an enterprise agreement is not effective until the Industrial Registrar has been given written notice of the approval to terminate or of service of the notice of intention to terminate.

If an award is not suitable for my employees or an award does not cover them, how can I establish an enterprise agreement?

An enterprise agreement sets out the minimum conditions of employment for employees engaged in particular types of work in an enterprise in the same way as an award does. It has the same legal force as an award and must be approved by the Industrial Relations Commission of New South Wales.

Enterprise agreements are specific to a particular enterprise or project and can be tailored to suit the special needs of that enterprise. Enterprise agreements are negotiated voluntarily between an employer and either the employees concerned, or a union on behalf of those employees.

Do I need an enterprise agreement to get on a building site?

There is no legislation to compel any party to negotiate an enterprise agreement. Principal contractors can include in a tendering paper a clause stipulating that a sub-contractor should have an enterprise agreement in place with their employees. You should discuss this with the principal contractor to ascertain exactly what is required or the relevant employer association.