Key Features of Enterprise Agreements

Januar 31, 2023 Allgemein 0

Enterprise agreements are legally binding contracts that are negotiated between an employer and their employees or a group of employees. Some of their key features include their purpose, coverage, content, negotiation process, and enforcement mechanisms. In this article, we will explore each of these features in detail.

Purpose of Enterprise Agreements

The primary purpose of an enterprise agreement is to define the rights and obligations of employers and employees in the workplace. It sets out the terms and conditions of employment, such as wages and working hours, and outlines the procedures for resolving disputes and grievances.


Enterprise agreements can cover a single workplace or multiple workplaces across different states or territories. They can also cover a specific group of employees or the entire workforce. The coverage of an enterprise agreement will depend on the nature and size of the business, as well as the needs and interests of the employees.


Enterprise agreements typically contain a range of clauses that cover various aspects of employment, including:

– Wages and salary arrangements

– Hours of work and rostering

– Leave entitlements (e.g. annual leave, sick leave, parental leave)

– Performance management and disciplinary procedures

– Redundancy and severance pay

– Training and development opportunities

– Workplace health and safety

– Dispute resolution procedures

Negotiation Process

Enterprise agreements are usually negotiated between the employer and a bargaining representative on behalf of the employees. The negotiation process may involve meetings and discussions, the exchange of proposals and counter-proposals, and the use of an independent conciliator or mediator to help resolve any disputes. Once an agreement has been reached, it must be approved by a majority of employees who are covered by the agreement.

Enforcement Mechanisms

Enterprise agreements are legally binding contracts that can be enforced through the courts. If a breach of the agreement occurs, the affected party can make a complaint to the Fair Work Commission, which has the power to investigate and resolve disputes. Employers who fail to comply with an enterprise agreement can face penalties and fines.

In conclusion, enterprise agreements are an important tool for defining the rights and obligations of employers and employees in the workplace. They provide a framework for fair and equitable employment practices and help to resolve disputes and grievances efficiently. By understanding the key features of enterprise agreements, employers and employees can work together to negotiate and implement agreements that meet their needs and interests.

Share this:

Sorry, the comment form is closed at this time.