Bargaining for an agreement

Employers, employees and their representatives can work together to make an enterprise agreement.

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Video: Understanding bargaining

Watch the video below to learn more about the bargaining process and how enterprise agreements are made and approved.

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You can also download a summary of this video: Understanding bargaining

Rules for bargaining

Enterprise agreements are legal documents covering employers and employees. They set out minimum employment terms and conditions for a single business or a group of businesses.

Employers, employees and their representatives (typically unions) are involved in the process of negotiating an enterprise agreement.

The Fair Work Commission (the Commission) is the national workplace relations tribunal. They review and approve agreements and publish them on their website.

Tip: We’re different from the Commission

We’re the national workplace relations regulator (the Fair Work Ombudsman). We can provide assistance on entitlements and obligations, including under an enterprise agreement.

The Commission is a separate government agency to us. They make awards, approve enterprise agreements and help resolve some issues at work.

Learn more about the 2 agencies at Difference between the Fair Work Ombudsman and the Fair Work Commission.

There are rules about the process that employers, employees and their representatives must follow to make an enterprise agreement.

There are also rules about what needs to be included in an enterprise agreement so that the Commission can approve it. This includes the Better Off Overall Test (BOOT), which tests to make sure the agreement leaves employees better off than the minimum award entitlements.

Find out the rules and requirements for making an agreement on the Commission’s website: Make an enterprise agreement.

The Commission also has a role in facilitating bargaining between parties and resolving disputes.

Help with bargaining

The Commission can help employers and employees with enterprise bargaining through their Collaborative Approaches Program.

The program helps parties build cooperative working relationships using interest-based approaches. It focuses on areas where interest-based approaches can be most helpful, including:

  • bargaining
  • consultation
  • problem-solving.

Find out more and check eligibility at Collaborative Approaches Program.

Source reference: Fair Work Act 2009 s.172

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