From the employee`s point of view, a common law contract with an underlying bonus allows an employee to keep his remuneration and conditions confidential if he wishes and to negotiate with an employer according to his own needs and wishes. It also allows for changes in conditions (by amending the treaty). However, from a negative point of view, it is more difficult to impose a contractual obligation than an EA obligation. Greenfields agreements are permitted where workers` organizations covered by the agreement have the right to represent the interests of the majority of workers, which is in the public interest. Under the Fair Work Act 2009, the following new enterprise agreements can be concluded: an enterprise agreement must include the following conditions: although bonuses cover minimum wages and conditions for a sector, enterprise agreements may cover specific agreements for a given company. If a job has a registered contract, the premium does not apply. However, the FWC will apply a strict “Better Off Overall Test” against an enterprise agreement to ensure that the worker has not been disadvantaged by the agreement. Unlike bonuses that provide similar standards for all workers in the industry as a whole covered by a specific premium, collective agreements generally apply only to employees for an employer. However, a short-term cooperation agreement (for example. B on a construction site) occasionally results in an agreement with several employers/workers. However, an enterprise agreement has several potential drawbacks: under Australian labour law, the 2005-2006 industrial reform, known as “WorkChoices” (with the corresponding amendments to the Workplace Relations Act (1996)) changed the name of these contractual documents to a “collective agreement”.
State industrial legislation may also impose collective agreements, but the adoption of the WorkChoices reform will reduce the likelihood of such agreements occurring. At AWL, we believe that most small and medium-sized employers would be better equipped with a flexible common law contract system under all the mandatory conditions for awarding industrial contracts, but this depends on the employer`s situation. The starting point is to actually meet with the current industrial premium and consider whether an EA is really necessary or whether the same result can be achieved in another way, such as .B application of a common contractual clause with an annualized wage agreement.