Enterprise Bargaining Agreements
An Enterprise Bargaining Agreement (EBA) is a collective industrial agreement between:
- an employer and a trade union acting on behalf of employees, or:
- an employer and employees acting for themselves.
From one point of view, EBAs benefit employers as they allow for improved “flexibility” in functions such as work hours, flat rates of hourly pay, and performance-based conditions.
From another point of view, collective agreements benefit your workers as they usually provide higher pay, bonuses, additional leave and better entitlements (e.g. redundancy pay) than an award might.
If you are beginning the process of Enterprise Bargaining or looking to move from Enterprise Bargaining into new workplace agreements, we can help you to negotiate the minefield of legalities and meetings needed to write a workable agreement which benefits both the company and the employees.
Workplace agreements come in many forms with the most popular choice under the provisions of the Fair Work Act (Cth) 2009 being Enterprise Bargaining Agreements (EBA’s).
EBA’s allow the employer to negotiate with their employees on workplace specific productivity and efficiency issues aimed at increasing the overall efficiency of the organisation in return for some negotiated increase in wages or conditions.
The Fair Work Act 2009 (Cth) has introduced the Better Off Overall Test or BOOT which ensures that as a result of any workplace specific enterprise bargaining agreement that the employee is better off overall than they would have been under the terms and conditions of the applicable award.
Unions may or may not be involved in this process with employees able to elect to appoint a Bargaining Agent to represent them in the EBA negotiations.
Individual Flexibility Agreements
Other workplace flexibility options include Individual Flexibility Agreements between the employer and individual employees. These agreements (IFA’s) do not require formal registration and may contain only matters pertaining to:
- arrangements when work is performed
- overtime rates
- penalty rates
- allowances: and
- leave loading
Either party may terminate an IFA after providing 13 weeks’ notices, and they may be renegotiated to suit the particular circumstances of the business.
We can supply expert help in all phases of enterprise bargaining, and especially in the area of planning and evaluating benefits and costs prior to commencing the process.
This is where a lot of employers fail to plan appropriately and we work with you so that all costings and strategies are approved and tested prior to the commencement of bargaining period.
Whether you have 1 or 10,000 employees we can assist you in evaluating the best possible enterprise bargaining vehicle and strategy available and provide practical advice and assistance to get the best possible outcomes for all parties.
Our experience has been gained over many years and at the cutting edge of Industrial and Employee relations in numerous industries to assist you in these processes.