Three Types of Enterprise (Collective) Agreements under the Fair Work Act 2009

The Fair Work Act 2009 governs the employment laws in Australia. This act sets out the rights and obligations of employers and employees and lays down a framework for collective bargaining. One of the most important aspects of the act is the provision for enterprise agreements. Here, we take a look at the three types of enterprise agreements that are covered under the Fair Work Act 2009.

1. Single Enterprise Agreement

A Single Enterprise Agreement (SEA) is a contract between an employer and a group of employees who work in a single enterprise. This type of agreement is most common in the private sector, where an employer negotiates terms and conditions of employment with its employees. SEAs can cover a range of issues, including wages, hours of work, leave entitlements, and dispute resolution mechanisms. Once negotiated, the SEA must be approved by the Fair Work Commission before it can come into effect.

2. Multi-enterprise Agreement

A Multi-enterprise Agreement (MEA) is a contract between two or more employers and a group of employees who work under those employers. MEAs are typically used by employers in the same industry or supply chain, and they can cover a range of employment issues, including wages, hours of work, and redundancy provisions. Like the SEA, the MEA must be approved by the Fair Work Commission before it can come into effect.

3. Greenfields Agreement

A Greenfields Agreement (GFA) is a contract negotiated between an employer and a union before the commencement of a new enterprise. GFAs are most commonly used in the construction and mining industries, where a new project is being established. In this type of agreement, a union can negotiate on behalf of workers who are not yet employed, and the agreement sets out the terms and conditions that will apply when employees are hired.

In conclusion, the three types of enterprise agreements covered under the Fair Work Act 2009 are the Single Enterprise Agreement, Multi-enterprise Agreement, and Greenfields Agreement. These agreements provide a framework for employers and employees to negotiate terms and conditions of employment and ensure that the rights and obligations of both parties are clearly defined. It’s essential for businesses to be aware of these agreements, as they offer a range of benefits for both the employer and the employee.