Hire and Rental News - May 2012

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24 | HIREANDRENTALNEWS | MAY 2012
INDUSTRY IN FOCUS
By Mason Sier Turnbull
Enterprise level bargaining has long
formed an integral part of Australia’s
workplace relations landscape to clarify
terms and conditions of employment.
The Fair Work Act 2009 sets down the
arrangements for employers to be able to
implement an enterprise agreement.
What is an Enterprise Agreement?
An enterprise agreement is simply a
workplace employment contract which is
negotiated at the workplace level and sets
minimum conditions of employment for
specific classes of employees.
For HRIA members, an enterprise
agreement can be implemented to address
employment terms for all current and
future non-managerial employees.
Enterprise agreements must be approved
by Fair Work Australia (FWA) before they
can be used in the workplace.
Types of Enterprise Agreements
The following types of enterprise
agreements can be implemented:
• Single-enterprise Agreements
A single employer, or a group of
employers with a single interest, may
enter into a single-enterprise agreement
with a particular group of employees.
• Multi-enterprise Agreements
Two or more employers who are not
single interest employers may enter
into a multi-enterprise agreement with
a particular group of employees within
each enterprise.
• Greenfields Agreements
One or more employers may enter into
a greenfields agreement (either with or
without a union) in connection with a
genuine new enterprise the employer
is proposing to establish, and where
no employees necessary for the normal
conduct of the business have been
employed yet.
Benefits of Having an Enterprise
Agreement for HRIA Members
HRIA members may have access to the
following benefits by implementing an
enterprise agreement:
• Compliance with Australian minimum
wage requirements
• Displacement of modern award
conditions
• Long term reduction in labour costs
• Reduced overtime from an increased span
of ordinary hours
How an Enterprise Agreement can work
for you in business management
• Ability to enter into broad individual
flexibility arrangements with employees
• Clearer terms and conditions of
employment for existing and new
employees
• Reduction in overhead for payroll
administration
• Ability to account for various loadings
and allowances under the modern award
through the hourly rate
• Access to the latest minimum wage
information for each new financial year
Under an enterprise agreement,
employers can pay staff a flat rate of pay
for all ordinary hours of work and an
annual salary for all hours worked, inclusive
of overtime and penalties
Implementation Process
In order for an employer to enter into an
enterprise agreement, the following steps
must be undertaken:
• The employer must notify employees
of their right to be represented by a
bargaining representative, within 14 days
of initiating the bargaining process
• Employees must be provided with a copy
of the proposed enterprise agreement,
no less than 7 days before the vote
• The employer must take all reasonable
steps to explain the terms of the
agreement to employees, specifically
those with particular circumstances (ie:
young employees)
• A majority of employees who cast a valid
vote must vote in favour of the enterprise
agreement
• The enterprise agreement must be
lodged with FWA for approval within 14
days of voting. In order to gain approval,
the enterprise agreement must meet the
‘better off overall test’ (BOOT).
In determining whether an enterprise
agreement meets the BOOT, FWA must be
satisfied each employee to be bound by
the enterprise agreement will be better off
overall than if the relevant modern award
applied to the employee. In the case of
HRIA members, multiple modern awards
may be considered.
An enterprise agreement will commence
seven days after FWA approval or the
date of commencement specified in the
enterprise agreement, whichever is later.
The Next Step
For more information on enterprise
agreements or to discuss an existing
registered agreement, contact the HRIA
HRnet hotline on 1800 474 247. This hotline
provides all HRIA members with free legal
support and advice on HR matters.
Mason Sier Turnbull assists HRIA members
with implementing enterprise agreements
through a fixed fee arrangement. Members
can obtain more information from: http://
hrnet.hireandrental.com.au/enterprise-
agreements/ HR