Infographic: The four ‘B’s of enterprise agreements


Infographic: The four ‘B’s of enterprise agreements

Today's infographic reveals the four 'B's of enterprise agreements – before, benefits, BOOT and bargaining.


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Enterprise agreements are collective agreements made by employers and their employees under the Fair Work Act. In most cases, employees are represented by unions which have a legal status as ‘bargaining representatives’.

Strict content requirements apply. A failure to meet these requirements can impact approval by the Fair Work Commission.

All enterprise agreements must meet the minimum conditions of the National Employment Standards. Wage rates in agreements must also be at least equal to the relevant award rates or national minimum wage order.

There are also a number of terms that are mandatory for all enterprise agreements.

These include: a nominal expiry date, which can be a maximum of four years from the date of commencement; a dispute settlement procedure flexibility term, which enables the employer and an individual employee to vary a specific term of the agreement to meet their genuine needs; and a consultation term regarding major workplace change.

The four ‘B’s of enterprise agreements

This infographic illustrates the four ‘B’s of enterprise agreements:
1. Before: questions the employer should ask before commencing the enterprise bargaining process
2. Benefits: the advantages an enterprise agreement can bring to a workplace
3. BOOT: all agreements must ensure employees covered by the agreement meet the Better Off Overall Test (the ‘BOOT’), ie the employee must be better off overall than under the relevant modern award
4. Bargaining: the process of an employee and employees (and their representatives) coming together to negotiate the terms of the enterprise agreement is called enterprise bargaining. The parties are expected to negotiate in good faith. 

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