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ARTICLE · 24 JANUARY 2023

What is an enterprise agreement?

There are 3 types of enterprise agreements which can be made under the FWA.

AustraliaEmployment and HR

Enterprise agreements are negotiated agreements between employers, employees and unions or bargaining representatives about minimum terms and conditions of employment. They can cover a range of matters, including fair wages, hours of work, meal breaks, overtime, flexible working conditions and consultation and dispute resolution processes.

Importantly, enterprise agreements must leave award-covered employees "better off overall" than the relevant modern award and cannot offer less than what is contained in the minimum standards provided by the National Employment Standards (NES).

From the date of approval, enterprise agreements can cover a period of up to four years but continue to operate after any nominal expiry date until they are either replaced by a new enterprise agreement or terminated by the Fair Work Commission.

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