Fair Work Australia Approved Agreements: What You Need to Know
If you`re an employer or employee in Australia, you may have heard of Fair Work Australia approved agreements. But what exactly does that mean? And how can it affect you? Let`s take a closer look.
What Are Fair Work Australia Approved Agreements?
Fair Work Australia approved agreements are agreements made between employers and employees that set out the terms and conditions of employment. These agreements are legally binding and must comply with the Fair Work Act 2009.
There are two types of Fair Work Australia approved agreements:
1. Enterprise agreements: These are agreements made between employers and employees in a particular enterprise, such as a business or franchise. These agreements must pass a `better off overall test`, which means that employees covered by the agreement must be better off than if they were covered by the relevant award.
2. Individual agreements: These are agreements made between an employer and an individual employee. These agreements must also pass a `better off overall test`. However, individual agreements are less common, as they are subject to more strict requirements than enterprise agreements.
Why Are Fair Work Australia Approved Agreements Important?
Fair Work Australia approved agreements are important as they provide a more flexible and tailored approach to employment conditions than the standard award. They can also help to avoid disputes between employers and employees, as the terms and conditions are agreed upon upfront.
In addition, Fair Work Australia approved agreements can benefit both employers and employees in several ways:
1. Employers can offer more competitive wages and conditions than the award, which can help to attract and retain talented employees.
2. Employees can negotiate more favourable conditions than the award, such as additional leave entitlements or flexible working arrangements.
3. Fair Work Australia approved agreements can help to improve workplace relations, as employers and employees work together to negotiate fair and reasonable terms and conditions.
How Do You Create a Fair Work Australia Approved Agreement?
To create a Fair Work Australia approved agreement, employers and employees must follow a specific process:
1. Identify the group of employees to be covered by the agreement.
2. Notify those employees of the proposed agreement and provide them with a copy.
3. Consult with employees and any relevant unions or bargaining representatives.
4. Draft the agreement and ensure it complies with the Fair Work Act 2009.
5. Lodge the agreement with the Fair Work Commission for approval.
Once approved, the Fair Work Australia approved agreement will come into effect and replace any relevant award conditions.
In conclusion, Fair Work Australia approved agreements can provide a more flexible and tailored approach to employment conditions than the standard award. They can help to improve workplace relations and benefit both employers and employees. If you`re considering creating a Fair Work Australia approved agreement, it`s important to understand the process and requirements to ensure compliance with the Fair Work Act 2009.