Of course, entry into an EA can sometimes be a requirement of a prime contractor before entering into a contract to carry out work, especially on large construction sites. This type of application is as controversial as “settlement agreements” with a union, but which are not approved by the FWC. Under Australia`s labour law, the 2005-2006 industrial reform, known as “WorkChoices”[3] (with the corresponding amendments to the Workplace Relations Act (1996), changed the name of these contractual documents to a “collective agreement.” State industrial legislation may also impose collective agreements, but the adoption of the WorkChoices reform will reduce the likelihood of such agreements occurring. Each enterprise agreement must include a concept of flexibility with individual modalities of flexibility. If, after six months of negotiations, the employers` and trade union organizations fail to agree on the terms of a Greenfields agreement, the employer can continue to submit the agreement to the Fair Work Commission. The terms of an enterprise agreement, transitional instruments (assignment or convention) and modern rewards cannot exclude the NES, and those who do so will have no effect. An employer may have separate enterprise agreements with different categories of workers, with conditions specifically tailored to this group. However, categories of workers must be chosen fairly, taking into account geographical, professional and organizational characteristics. In general, an enterprise agreement has the following advantages: however, it is not enough to simply respond to workers on demand and explain the agreement, especially if the proposed agreement removes significant rights that workers would otherwise have enjoyed. The FWC will apply a strict need-based test, called the “Better Off Overall Test” against an enterprise agreement, to ensure that the worker has not been disadvantaged by the agreement. The old EAs can be terminated on request from the FWC, with the agreement of the employer and employees, or at the employer`s sole request.

In the past, it was difficult to get the agreement of the FWC to lay off a former EA without the consent of the workers. Under the Fair Work Act, the FWK must consider the public interest in review if a contract is to be terminated. The FWC has a wide discretion to examine both the objectives of the legislation and, importantly, the impact that redundancy will have on employers and workers and their ability to negotiate effectively. There are no employees who vote on a Greenfields agreement.