Difference Between Individual Contract And Enterprise Agreement

An agreement with a company can replace an agreement with several companies before the agreement of several companies has passed its nominal expiry date. What is the difference between an employment contract and an enterprise contract? Once negotiations on the enterprise agreement between the representative parties have been concluded, the agreement will have to be voted on. All workers covered by the outstanding agreement are entitled to vote on the agreement. If the majority of staff who voted valid approve the agreement, the Enterprise Agreement will be submitted to the FWC for approval. However, it is not enough to simply offer, answer questions and explain the agreement to workers on demand, especially if the proposed agreement removes the important rights that workers would otherwise have enjoyed. There is no majority decision for an agreement with several companies. An Enterprise Agreement (EA) or An Enterprise Compensation Agreement (EBA) are collective agreements that are subject to a strict application and authorization procedure by the Fair Work Commission. Enterprise agreements must have an expiry date of no more than four years from the date the Fair Work Commission approves the agreement. However, an employment contract cannot legally supersede the conditions of award, so that when an award is in force, it is the origin of the employment contract and, if the terms of the contract are less favourable than the award, the conditions of award apply in spite of the contract.

“We don`t want to pay premiums, can we not just have an enterprise agreement?” Well, no, it`s not that simple. McDonalds is an interesting example of what can be done. In the McDonald`s case (2010), McDonald`s held meetings with staff to explain the new agreement, using a large number of meeting places to encourage participation, including the rental of movie theaters. The union, in agreement with McDonald`s, prepared summaries of the agreement that outlined the differences between the terms of the contract and the current terms. Staff were allowed to do certification work or access electronic versions and copies on warning signs. Other meetings were organized by the union, during which explanations were given and questions were asked. Staff were also able to contact each state`s human resources department for clarification. The FWC decided that these were appropriate measures to ensure that the declaration was given appropriately, taking into account the needs of workers, including young people.

In an enterprise agreement, it is possible to reorganize different categories of leave or working time or remuneration as long as the agreement goes through the Better Off Overall Test (BOOT): overall, employees must be better off than they would be below the price. For example, if a flat rate plus the base rate is paid instead of the base rate plus overtime, the overall income must be higher than what would be paid for the corresponding model of overtime work under the premium.