The MBV Employment and Industrial Relations team consistently receives inquires on enterprise agreements. 

We assist members with board range of enterprise agreement questions, including whether a company must have one, what are some of the benefits and disadvantages of implementing one, and the process involved in making one.  

What are enterprise agreements?  

An enterprise agreement (commonly referred to as “EA” or “EBA”) is an industrial instrument made at the enterprise level that provides for the minimum terms and conditions of employment for a period of up to four years from the date of approval.

An enterprise agreement is likely to have clauses that specify minimum wages, allowances, penalty rates and leave entitlements amongst other things.  

Generally, an enterprise agreement will be made between the employees and the employer, provided that most employees covered by the agreement agree by voting for it.

In some enterprise agreements, the relevant union may also be a party to the agreement. 

Does my business need to have an enterprise agreement?  

No. There is no requirement to have an enterprise agreement.  

We understand that some companies may face pressure to have an enterprise agreement.

These practices are illegal.  

The Fair Work Act 2009 (Cth) (“FW Act”) prevents a person (including an industrial association or business) from discriminating against an employer because that employer has, or does not have, an enterprise agreement with its employees.  

Similarly, the FW Act prevents a person from acting, or threatening action, against a person with the intent to coerce the person to engage or not engage a particular contractor for any reason.

This may be because the contractor has, or does not have, an enterprise agreement. 

While there may be industrial and organisational reasons as to why you may want to have an enterprise agreement, there are no legal requirements for you to have one. 

It is perfectly lawful for a business to engage employees in accordance with the applicable modern award. 

How can MBV assist you?  

The process to make an enterprise agreement can be difficult.

If this is something you would like to consider, the MBV Employment and Industrial Relations team can help.

We can assist you with drafting a proposed enterprise agreement, following the procedural requirements, and filing it for approval with the Fair Work Commission.

For further information, you can contact the EIR team on (03) 9411 4555.