Enterprise Agreements & Awards

Employment Law

Key Takeaway

We provide comprehensive advice to employers, employer associations, and employee representatives on the negotiation, drafting, approval, and ongoing management of enterprise agreements, and on the application and interpretation of modern awards. Our practice covers the complete lifecycle of enterprise agreements under the Fair Work Act 2009, from the initial decision to pursue an agreement through the bargaining process, drafting, approval process including the better off overall test, and ongoing management and variation. Our award advisory practice assists employers in identifying the correct modern awards, understanding award entitlements, managing interaction between awards and contracts, and addressing compliance issues.

Our enterprise agreement practice is built on deep experience in negotiating and documenting agreements across diverse industries. We advise on the strategic decision to pursue an enterprise agreement, including advantages such as tailored employment terms and productivity flexibility, and disadvantages including complexity and cost of approval. We manage the full process from pre-bargaining strategy through to post-approval compliance. Our award advisory practice covers identification of applicable awards, classification structures and minimum wages, penalty rates and allowances, leave provisions, and flexibility mechanisms including annualised salary arrangements and individual flexibility arrangements.

Enterprise Agreement Negotiation & Drafting

We advise on the bargaining framework under the Fair Work Act, including the good faith bargaining requirements that apply to all bargaining representatives. These include attending meetings, disclosing relevant information, responding to proposals, giving genuine consideration to proposals, and refraining from capricious conduct. We advise on consequences of non-compliance including bargaining orders and serious breach declarations. Our drafting ensures agreements satisfy Fair Work Act requirements including the better off overall test, absence of unlawful terms, inclusion of dispute resolution and flexibility terms, and specification of nominal expiry date.

The Better Off Overall Test & Approval Process

The better off overall test requires the Fair Work Commission to be satisfied that each employee would be better off overall under the agreement than under the relevant modern award. Our BOOT analysis compares rates and conditions under the proposed agreement with the relevant award for each classification and employee type. We identify employees who may not be better off and advise on amendments to address issues. We manage the entire approval process from lodgment through to hearing, including preparation of Form F16 application, Form F17 statutory declaration, and responses to Commission queries.

Modern Awards Application & Compliance

Modern awards provide a safety net of minimum employment terms for specific industries and occupations. We conduct comprehensive reviews of applicable modern awards, advise on coverage provisions including industry and occupational rules, and ensure correct classification of employees under award definitions. Our award compliance advice covers minimum wages and classification rates, hours of work provisions, overtime and penalty rates, allowances, leave provisions, and consultation and dispute resolution clauses. We advise on annualised salary arrangements including drafting compliant clauses and managing annual reconciliation requirements.

Flexibility Provisions & Guarantee of Annual Earnings

The Fair Work Act and modern awards provide flexibility mechanisms including individual flexibility arrangements and guarantee of annual earnings. IFAs enable variation of award or enterprise agreement terms to meet genuine needs provided the employee is better off overall. We draft IFAs that comply with requirements and reflect specific needs. The guarantee of annual earnings provisions under section 330 provide an alternative for award and agreement free employees, allowing agreement on an annual rate at least the sum of award entitlements. We advise on requirements for valid guarantees, calculation, documentation, and interaction with other entitlements.

Enterprise Agreements & Awards FAQs (Queensland Law)

What is the enterprise agreement process?

At our firm, enterprise agreements are made between employers and employees under the Fair Work Act. The process involves bargaining, drafting the agreement, a vote by employees (majority must approve), and approval by the Fair Work Commission.

What is the Better Off Overall Test (BOOT)?

At our firm, the BOOT requires that each employee covered by an enterprise agreement is better off overall compared to the relevant modern award. The Fair Work Commission assesses this before approving the agreement.

How does modern award coverage work?

At our firm, modern awards cover specific industries or occupations. If an employee performs work within an awards scope, the award applies unless the employee is covered by a registered enterprise agreement that passes the BOOT.

What is the difference between base rate and minimum wage?

At our firm, the base rate is the minimum rate payable under an award or agreement for a particular classification. The national minimum wage (currently .10 per hour from July 2024) is the minimum for employees not covered by any award or agreement.

How can an enterprise agreement be terminated?

At our firm, an enterprise agreement can be terminated by application to the Fair Work Commission, either by joint application of the employer and employees, or by the employer alone if the agreement has passed its nominal expiry date.

Enterprise Agreements & Awards Services

Advice on strategic decision to pursue an enterprise agreement including benefits, risks, and alternatives
Negotiation and drafting of enterprise agreements including all terms required for Fair Work Commission approval
Management of enterprise agreement approval process including better off overall test and statutory declarations
Post-approval management including agreement variation, termination, and replacement of enterprise agreements
Greenfields agreement advice for new enterprises including agreement with unions or employee organisations
Single-enterprise and multi-enterprise agreement advice including scope and coverage considerations
Advice on modern award coverage including identification of correct award and classification of employees
Individual flexibility arrangements under modern awards and enterprise agreements including drafting and process
Annualised salary arrangements under modern awards including compliance and annual reconciliation requirements
Guarantee of annual earnings advice including compliance with section 330 of the Fair Work Act
Fair Work Commission representation in approval hearings, disputes, and agreement variation proceedings
Advice on base rate of pay, classification definitions, and minimum wages across all applicable modern awards

Last updated: July 2026

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