Enterprise Agreement Expires
The possibility for an employer to request the unilateral termination of a company agreement that has passed its nominal expiry date is not new; In fact, since the Pre-WorkChoices Workplace Relations Act of 1996, it has been a feature of our corporate trading system. The trade union parties submitted that the workers covered by the agreements were opposed to the termination of these agreements, as this would lead to a reduction in working conditions. Full Bench was not convinced of this argument, given that the Fair Work Act does not guarantee the terms contained in an agreement that has expired in nominal terms. Ultimately, Full Bench found that it was not possible to expect a company agreement exceeding its nominal expiration date to continue to apply in the long term. The FWC has a wide margin of appreciation to examine both the objectives of the law and, above all, the impact of dismissal on employers and workers and their ability to negotiate effectively. A company agreement must contain the following conditions: But first of all, what is an EA? Overall, the FW Act defines an EA as an instrument between one or more employers in the national system and their employees and, in certain circumstances, a trade union or association of workers, as provided for in the agreement. These agreements are negotiated through collective bargaining and it is necessary that this be done in good faith. In addition, we also meet employers who are still acting under agreements under previous employment relations laws, including collective agreements, Australian Company Agreements (AWA) and Individual Temporary Employment Contracts (ITEA`s). These agreements will also have expired. For the above reasons, it is important for employers to get advice on their bargaining strategy, including what could be achieved if their company agreement were terminated. But obviously, the rumors of the fall of the Fair Work Act are exaggerated.