Key Updates to Enterprise Bargaining: What You Need to Know

Key Updates to Enterprise Bargaining: What You Need to Know

Key Updates to Enterprise Bargaining: What You Need to Know
Key Updates to Enterprise Bargaining: What You Need to Know

As of 6th June 2023, the enterprise bargaining landscape has transformed. The introduction of the ‘Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 Secure Jobs and Better Pay’ has revamped the Fair Work Act 2009’s enterprise bargaining provisions, making them more flexible and user-friendly for both employers and employees.

A Glance at Previous Limitations

Historically, the enterprise bargaining process was seen as a complex, rigid system. This perceived complexity hindered many employers and their teams from entering into negotiations.

However, the new changes are poised to break down these barriers and drive a higher adoption rate of enterprise bargaining.

Highlighting the Major Changes

  1. Better-off-overall test (BOOT): This has been revised to be less restrictive, ensuring a smoother bargaining process.
  2. Single enterprise bargaining: No longer need for bargaining agents to secure a ‘majority support determination’ from the Fair Work Commission.
  3. Mandatory conciliation: Now, parties must undergo mandatory conciliation to navigate any bargaining stalemates during protected bargaining.
  4. Extended notice period: Engaging in protected industrial action now requires a 120-hour notice.
  5. Balloting for protected industrial action: Agents can now be engaged for this purpose.
  6. Intractable bargaining impasses: New provisions to better address these.
  7. Zombie agreements: These will be phased out.

Furthermore, the introduction of three novel multi-enterprise bargaining streams aims to widen its reach:

  • Single-interest employer agreements: Tailored for multiple employers with shared interests, such as franchises.
  • Supported bargaining agreements: Replacing the earlier low-pay arrangements.
  • Co-operative workplace agreements: For employers agreeing to collective bargaining under certain conditions.

Of significant note, these amendments allow for the inclusion or exclusion of parties in multi-enterprise agreements. In all these streams, the employer’s involvement is subject to authorization from the Commission.

The Commission’s New Responsibilities

The Fair Work Commission has new obligations, including:

  • Ensuring the employee party understands and has a genuine stake in an agreement before approving.
  • Issuing a ‘statement of principles’ that offers guidance to employers on proving genuine agreement by all involved parties. This critical statement is accessible on the Fair Work Commission website. Its key tenets focus on transparency, communication, and the right of employees to make informed decisions.

Lastly, to ensure fairness and avoid undue penalizations, minor technical or procedural errors can be overlooked by the Commission, provided they don’t harm the employees.

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With offices in Melbourne, Sydney and Brisbane, we work with businesses across Australia.

For more information, please contact us on 1300 887 458 and speak with one of our HR Consultants.

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Updated on 1 July 2024

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