Workers are able to take industrial action when negotiating a draft enterprise agreement. There are strict rules governing union action under the Fair Work Act 2009, including the rights, duties and obligations of employers, workers and their organizations. For more information, see the Fair Work Ombudsman – Trade Union Actions fact sheet. An agreement is reached on several companies between two or more employers (not all of whom are employers with a single interest) and workers who are employed at the time of the agreement and who are covered by the agreement. There are two main types of business agreements that can be concluded under the Fair Work Act: an important legal question regarding enterprise agreements was raised by the High Court of Australia`s decision in Electrolux v. the Australian Workers` Union. The question was what these industrial instruments could cover. The Australian Industrial Relations Commission set the issue in 2005 for the three certified agreements. Organizations that are negotiators (employers, employers` organizations and trade unions) for a proposed enterprise agreement must disclose certain financial benefits that they (or certain related parties) may obtain (or could obtain) because of the length of the proposed agreement.
Among the transitional instruments based on the agreement are various collective agreements and collective agreements that could be concluded before July 1, 2009 under the former Labour Relations Act 1996. These include transitional individual contracts (ITEAs) concluded during the “transition period” (July 1, 2009-December 31, 2009). These agreements will continue to function as transitional instruments based on agreements until they are denounced or replaced. Registered contracts apply until they are terminated or replaced. There are no employees who vote on a Greenfields agreement. This type of agreement must be signed by each employer and any relevant workers` organization it covers. Negotiators are required to act in good faith in the process of negotiating a proposed enterprise agreement. A registered agreement sets out the conditions of employment between a worker or a group of workers and one or more employers.
The proposed application for an enterprise agreement must be submitted to the Fair Labour Commission within 14 days of the date of filing or within an additional period of time, as permitted by the Fair Work Commission. On the one hand, collective agreements benefit at least in principle employers, as they improve “flexibility” in areas such as normal hours, flat-rate hourly wage rates and benefit conditions. On the other hand, collective agreements benefit workers, since they generally offer higher wages, bonuses, additional leave and higher rights (such as redundancy pay) than a bonus. [Citation required] Enterprise agreements are enterprise-level agreements between employers and workers and their union on terms of employment.