Understanding agreements

Find information on enterprise agreements and the different types that exist.

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Agreements

Enterprise agreements set out minimum employment conditions and apply to one business or a group of businesses.

Enterprise agreements are sometimes called ‘EAs’ or ‘EBAs’.

Most employees get pay and entitlements from an award or an agreement. This is in addition to the National Employment Standards (NES), which are the minimum employment entitlements that have to be provided to all employees.

If an agreement applies to employees in a workplace, no award will apply to those employees. However:

  • the base pay rate in the agreement can’t be less than the base pay rate in the applicable award
  • the NES still apply
  • any terms about outworkers in the award still apply.

Agreements apply until they are terminated or replaced. They don’t automatically end when they reach the nominal expiry date.

If you’re looking for an agreement, go to Finding an agreement.

Types of agreements

There are 3 types of agreements that can apply to employers and employees:

  • single-enterprise agreements – single business or enterprise
  • multi-enterprise agreements – more than one business or enterprise
  • greenfields agreements – new enterprises that don’t have any employees yet.

Difference between an agreement and an award

Agreements are different from awards.

Awards are legal documents made by the Fair Work Commission (the Commission) and are regularly reviewed. The Commission is the national workplace relations tribunal. Awards outline the minimum pay rates and conditions of employment. They cover an industry (like the Retail Award) or a type of job (like the Clerks Award).

Awards can cover lots of different businesses and employees, while an agreement is the result of a bargaining process between an employer or group of employers and their employees. Agreements are approved by the Fair Work Commission. They are tailored to the circumstances of the business or businesses involved.

Learn how to find a copy of an award and check entitlements and obligations at Awards.

Difference between an agreement and an employment contract

Agreements are also different from employment contracts. Agreements cover at least 2 employees, while an employment contract is an agreement between an employer and an individual employee.

An employment contract sets out terms and conditions of employment. It can apply in addition to an award or enterprise agreement but can’t leave the employee worse off. It can’t provide for less than the legal minimum entitlements set out in the NES or their award or agreement. A contract can be in writing or verbal.

For more information, go to Employment contracts.

How agreements are made

The Fair Work Commission approves and registers all enterprise agreements.

The Commission can help in the process of negotiating an enterprise agreement. For more information on making an enterprise agreement, go to Start bargaining.

Tip: Find your agreement on the Commission website

The Commission has a database of agreements on its website: Find an enterprise agreement.

If you need help working out if an agreement applies or finding one, go to Finding an agreement. We have practical advice and helpful tips you can follow.

Video: Understanding agreements

Watch the video below to learn more about enterprise agreements, how they are made and how the Commission helps in the process.

Video URL

 

You can also download a summary of this video: Understanding enterprise agreements.

Agreements made before 1 January 2010

Before the Fair Work Act, different types of agreements could be made. These are often called ‘zombie agreements’.

Any zombie agreement that was still operating automatically terminated on 7 December 2023, unless an application was made to extend it.

Learn more at Agreements made before 1 Jan 2010.

Source reference: Fair Work Act 2009 ss.50-58, 127 and 206

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