Awards and Agreements Flashcards
What are awards?
Awards set minimum wage and other entitlement standards
Awards do not apply when a business has an alternative registered agreement, but they do serve as a guarantee of the minimum age and entitlements
The baseline of rights
What are Enterprise Agreements?
Enterprise agreements are made between an employer and two or more employees and their representative (often a union representative)
What is included in an Enterprise Agreement?
a nominal expiry date (2-3 years)
10 National Employment standards
procedures for settling any disputes (grievance, etc)
Terms that allow for individual flexibility, so that arrangements can be made between the employer and individual employees
supplies for consultation with employees on major workplace change
What is FWC’s Role in Enterprise Agreements?
when an agreement is reached between parties it is sent to the FWC to verify/approve it
The agreement needs to be signed by the employer and bargaining reps
What is good faith?
an expectation for all parties to be fair and enter negotiations with good faith
What is included in an Individual Employment Contract
Individual employment contracts are between an individual and their employer
The agreed wages and conditions need to be more than NES standards
What are advantages of awards?
give a “level playing field” for employment conditions. Employees are not worse off than other employees.
Usually the preferred industrial instrument by unions. It may be easier for an employer to establish an amicable relationship with unions who represent employees
Employers and employees may be more comfortable with regulation by an award than an agreement
Employers and employees may prefer an award that can be settled on an independent “third party” basis if required.
What are disadvantages of awards?
less flexibility to cater for requirements of individual workplaces and employees needs
Can’t control pay given to workers (takes away flexibility)
Not going to be better off than other employees due to equality
Advantages of Enterprise agreements
greater flexibility
it is easier to link (reward) wage growth with productivity increases
parties directly involved in negotiations, not imposed by a third party.
Enables employers to know what employees want (win-win situation).
Disadvantages of enterprise agreements?
it is more time-consuming to negotiate awards handled outside the workplace
generally more expensive to implement than awards
must pass “no disadvantage” or similar tests for ratification by industrial tribunals.
Causes conflict between employer and employee due to ongoing negotiation
