About agreements
Find information on enterprise agreements and the different types that exist.
On this page:
- What's an agreement
- Types of agreements
- Difference between an agreement and an award
- Difference between an agreement and an employment contract
- How agreements are made
- Video: Understanding agreements
- When agreements stop applying
- Disputes about an agreement
- Other agreements made before 1 January 2010
- Tools and resources
- Related information
What's an agreement
An enterprise agreement sets out minimum employment conditions and applies to one business or a group of businesses.
Enterprise agreements are sometimes called ‘EAs’ or ‘EBAs’.
Most employees get pay and entitlements from an award or an enterprise agreement. These entitlements are in addition to the National Employment Standards (NES). The NES are minimum employment entitlements that have to be provided to all employees.
An award won’t apply if an enterprise agreement applies to employees in a workplace. However:
- the base pay rate in the agreement can’t be less than the base pay rate in the award that covers the employee
- the NES still apply, and
- any outworkerContractors or employees who perform their work at home or at a place that wouldn’t normally be thought of as a business premise. A common type of outworker is a contractor in the textile, clothing or footwear industry who works at home. terms in the award still apply.
If you’re looking for an enterprise agreement, go to Finding an agreement.
Types of agreements
There are 3 types of enterprise agreements that can apply to employers and employees:
- single-enterprise agreements: single employer (or 2 or more related employers)
- multi-enterprise agreements: more than one employer
- greenfields agreements: a type of single or multi-enterprise agreement for a new enterpriseAn enterprise means a business, activity, project or undertaking. that doesn’t have any employees yet.
Difference between an agreement and an award
Enterprise agreements are different from awards.
Awards are legal documents made by the Fair Work Commission (the Commission) and are regularly reviewed. The Commission is the national workplace relations tribunal.
Awards outline the minimum pay rates and conditions of employment. They cover an industry (like the Retail Award) or a type of job (like the Clerks Award).
Awards can cover lots of different businesses and employees, while an enterprise agreement is the result of a bargaining process between an employer or group of employers and their employees. Enterprise agreements are approved by the Commission. They are tailored to the circumstances of the business or businesses involved.
Learn how to find a copy of an award and check entitlements and obligations at Awards.
Difference between an agreement and an employment contract
Enterprise agreements are also different from employment contracts.
Enterprise agreements cover at least 2 employees, while an employment contract is an agreement between an employer and an individual employee.
An employment contract sets out terms and conditions of employment. It applies in addition to an award or enterprise agreement but can’t leave the employee worse off. An employment contract can’t provide less than the legal minimum entitlements set out in the NES or the employee's award or enterprise agreement. An employment contract can be in writing or verbal.
For more information, go to Employment contracts.
How agreements are made
The Fair Work Commission approves and registers all enterprise agreements.
The Commission can help in the process of negotiating an enterprise agreement. For more information on making an enterprise agreement, go to Start bargaining.
Tip: Find your agreement on the Commission website
The Commission has a database of enterprise agreements on its website: Find an enterprise agreement.
If you need help working out if an enterprise agreement applies or finding one, go to Finding an agreement. We have practical advice and helpful tips you can follow.
Video: Understanding agreements
Watch the video below to learn more about enterprise agreements, how they are made and how the Commission helps in the process.
You can also download a summary of this video: Understanding enterprise agreements.
When agreements stop applying
Enterprise agreements apply until they are terminated or replaced. They don’t automatically end when they reach the nominal expiry date.
When an enterprise agreement is replaced, the new enterprise agreement will apply from 7 days after the Commission approves it, unless it specifies a later date.
Disputes about an agreement
All enterprise agreements set out what steps to take if there’s a dispute about a term of the enterprise agreement or the NES. This is usually called the ‘dispute resolution’ process and each enterprise agreement has its own process.
Some enterprise agreements may set out how the Commission can help if a dispute can’t be resolved. For tips on reading an enterprise agreement, go to our Finding an agreement page.
Learn more about how to make an application for a dispute at Dispute about an award or agreement .
For general guidance on resolving a workplace issue, go to Fixing a workplace problem.
Other agreements made before 1 January 2010
Before the Fair Work Act, different types of agreements could be made. These are often called ‘zombie agreements’.
Any zombie agreement that was still operating automatically terminated on 7 December 2023, unless an application was made to extend it.
Learn more at Agreements made before 1 Jan 2010.
Source reference for page: Fair Work Act 2009 sections 54–55, 57–58, 61, 169, 172, 206
