ARTICLE · 09 SEPTEMBER 2012

FWA knocks off opt-out clauses in enterprise agreements

Hunt & Hunt

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In a recent case, Fair Work Australia (FWA) put an end to the potential for opt-out clauses in enterprise agreements.

AustraliaEmployment and HR

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In our July Update, we let our clients know that enterprise agreement "opt-out" clauses are not a safe bet, but that there are alternative ways to reward and engage employees covered by enterprise agreements (EAs). Since that update, Fair Work Australia (FWA) has put an end to the potential for opt-out clauses in a five-member full bench decision, CFMEU v Queensland Bulk Handling [2012] FWAFB 7551. Now, not only are "opt-out" causes not a safe bet, they are unlikely to ever be approved without significant changes to the Fair Work Act 2009. However, the CFMEU v QBH decision does not stop an employer from exploring the alternative ways of managing essential employees described in our July Update.

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