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ARTICLE · 15 APRIL 2020

Pay increases under enterprise agreement withheld in response to COVID-19

Variations to enterprise agreements may preserve the financial viability for some businesses during this COVID-19 crisis.

AustraliaCoronavirus (COVID-19)

In brief

The impact of the COVID-19 pandemic is wreaking havoc on financial viability of businesses globally. While legislation that will provide some financial certainty is in the pipeline, flexibility may be achieved by recourse to some existing industrial mechanisms including varying terms under enterprise agreements.

Variations to enterprise agreements to preserve business financial viability

On 31 March 2020, CVSG Electrical Construction Pty Ltd (CSVG) applied to the Fair Work Commission (FWC) pursuant to section 210 of the Fair Work Act 2009 (Act) to vary the CVSG Electrical Construction Enterprise Agreement 2017-2021 (Agreement) in order to withhold pay increases due under the Agreement.

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