Enterprise agreements

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Burn Legal Australia assists employers throughout the entire process of negotiating, drafting, and implementing enterprise agreements. We understand the intricacies of the Fair Work Act 2009 (Cth) and can provide expert guidance to help you make a legally valid enterprise agreement that meets the unique needs of your organisation. 

An enterprise agreement is a legally binding document that sets out the terms and conditions of employment for a group of employees within an organisation (or organisations). These agreements are negotiated between employers, employees, and their representatives, such as unions, and must comply with the requirements outlined in the Fair Work Act. There are a variety of industrial instruments that can be made under the Fair Work Act, including industrial instruments that include multiple employers. 

• Flexibility: Enterprise agreements offer flexibility in setting terms and conditions of employment, allowing organisations to tailor agreements to suit their specific needs while ensuring compliance with relevant legislation.
• Improved Productivity: By establishing bespoke working arrangements, enterprise agreements can contribute to improved productivity and performance within the workplace.
• Certainty and Stability: Having a well-drafted enterprise agreement in place provides both employers and employees with certainty and stability regarding their rights and obligations for a period of up to 4 years. For example, industrial action (such as strikes) cannot occur during the nominal life of an enterprise agreement. It is also more difficult for an employer to be roped into a multi-enterprise agreement if the employer already has an enterprise agreement. 

1. Preparation: Before negotiations begin, it's crucial to conduct thorough research, identify key priorities, and engage with relevant stakeholders. If an organisation already has an enterprise agreement that is expiring, it should consider what has not worked well under that enterprise agreement. Burn Legal Australia can help you prepare and draft the enterprise agreement, ensuring that it is compliant with the current provisions of the Fair Work Act. 
2. Negotiation: Negotiations typically involve discussions between employers, employees, and their representatives to reach agreement on terms and conditions such as wages, hours of work, leave entitlements, and dispute resolution procedures. Burn Legal Australia offers strategic advice throughout the negotiation phase. 
3. Approval: After negotiations the proposed enterprise agreement must be voted on by the affected employees. If the agreement is approved by the majority, it is then submitted to the Fair Work Commission for approval. This approval process requires employers to explain the enterprise agreement to employees and ensure that employees covered by the enterprise agreement are better off overall under the agreement than they would be under the underlying modern award. Burn Legal Australia can draft employee correspondence and conduct the Better Off Overall Test ("BOOT"). 
4. Implementation and Compliance: Upon approval by the Fair Work Commission, the enterprise agreement comes into effect, and the employer is required to adhere to its terms and conditions. Enterprise agreement terms can be difficult to interpret and apply, particularly if a business changes its practices or the underlying modern award changes. Burn Legal Australia can help with interpreting these terms and assisting with dispute resolution procedures.