Entering into an employment contract is a process which establishes the terms of an employment relationship. Consequently, it is a very important process for both employer and employee. In this article, we’ll discuss the enterprise agreement and specifically the single enterprise agreement.
What’s an Enterprise Agreement?
Put simply, an enterprise agreement is a jointly constructed agreement between employees and an employer. It guarantees minimum entitlements for all employees such as pay, conditions and break entitlements. Generally, an enterprise agreement will be the first point of reference for any workplace related disputes or issues. This is because it governs a group of employees fundamental entitlements and responsibilities. The Fair Work Act 2009 (Cth) regulates such agreements in Australia.
Example
For example, company A (a supermarket) might enter into an enterprise agreement with its employees. According to a provision in the agreeement all employees in the company will be paid above $22 per hour. Additionally, it states that employees working a 6-hour shift are entitled to a paid 15-minute break.
What’s a Single Enterprise Agreement
A single enterprise agreement is an agreement between employees and a single employer or two or more single interest employers. Essentially, single interest employers are businesses which are related. This can mean many things. Common examples are joint ventures and related corporations.
The difference here is that the agreement is between the employees and one employer rather than multiple employers. This distinction is relevant as the Fair Work Act 2009 (Cth) has provisions which behave differently in respect of different enterprise agreements. For instance, ‘multi-enterprise agreements’ and ‘greenfields agreements’ are other kinds of enterprise agreements.
Example
For example, company A (a supermarket) and it’s subsidiary liquor division enter an enterprise agreement with their employees. The agreement covers the basic entitlements of all employees working for both businesses. This agreement is a single enterprise agreement.
Summary
In summary, a single enterprise agreement is a kind of enterprise agreement. Its distinguishing feature is that it can only be between a single employer or multiple single interest employers and employees. Should you need to negotiate an employment agreement it may be best to seek professional legal assistance.
