What’s an enterprise agreement?
Enterprise agreements set out the employment conditions between an employee or group of employees and an employer.
Enterprise agreements can be between:
- an employer and a group of employees
- more than 1 employer and a groups of employees
- 1 or more employers and 1 or more unions for a genuine new enterprise (ie. one that doesn’t have employees yet). These are called greenfields agreements.
the Fair Work Commission:
Differences between enterprise agreements & modern awards
Enterprise agreements include specific conditions for one workplace. Modern awards are a safety net of minimum conditions for a whole industry or type of job.
When a workplace has an enterprise agreement, the modern award doesn’t apply. However, the pay rate in the enterprise agreement can’t be less than the pay rate in the modern award. Any terms about outworkers in the modern award also still apply.