On 1 December 2011,
TAFE NSW
employees moved
from the NSW
industrial relations
system to the
Commonwealth
system, Fair Work
Australia.
The big difference
between the old
system and the new
system is that you
have a vote – an
enterprise agreement
has to be agreed to
by the employees.
This sheet provides
you with an overview
of the enterprise
bargaining process
in Fair Work
Australia to which
explains the process.
We hope this will
encourage you to
vote and to help you
make your decision.
ENTERPRISE BARGAINING
BANNER HEADLINE
DEADLINEMAIN BANNER
Definitions
HEADING
 Enterprise agreement - an agreement made at
an enterprise level between an employer and their
employees that sets out terms and conditions of
employment, for employees covered by that
agreement.
 Enterprise bargaining process - the process by
which employers and employees negotiate the
terms and conditions which make an enterprise
agreement. Either side may be represented in the
process by a bargaining representative.
 Bargaining representative - a person or
organisation that each party (employee or
employer) may appoint to represent them during
the enterprise bargaining process. For employees,
the default bargaining representative is a trade
union, if they are a member of that union.
However, employees can generally appoint
whoever they wish as their bargaining
representative, including themselves.
 National Employment Standards - minimum
terms and conditions that apply to all national
system employees. They include minimum
entitlements to leave, public holidays, notice of
termination and redundancy pay.
 Better Off Overall Test (BOOT) - for an
agreement to pass the BOOT, Fair Work Australia
must be satisfied that employees would be better
off overall under the agreement than if the
relevant award applied.
If you have any questions, please email tafe&[email protected]
The enterprise bargaining process:
1. Notice of employee representational rights
An employer must notify their employees of the right to be represented by a bargaining
representative during the bargaining of an enterprise agreement, no later than 14 days after
the start of bargaining. The notification should be given to each current employee who will be
covered by the proposed enterprise agreement.
2. Appointment of bargaining representatives
An employer and a union that has a member who is covered by the proposed agreement will
automatically be bargaining representatives for the agreement.
An employee or the employer may appoint another bargaining representative in writing.
3. Good faith bargaining
Bargaining representatives are required to act in good faith in the process of bargaining for a
proposed enterprise agreement.
Good faith bargaining does not mean that bargaining representatives must make
concessions.
4. Voting
Once bargaining is complete and a draft enterprise agreement has been made, it must be
submitted to a vote by the employees who will be covered by the agreement.
Before this vote, the employer must:
-
Provide employees with a copy of the agreement and any other material incorporated in
the enterprise agreement.
Notify employees of the time and place the vote will occur and the method to be used.
Take reasonable steps to ensure terms of the enterprise agreement and the effect of
those terms are explained to employees.
A vote is successful when a majority of employees who cast a valid vote endorse the
agreement.
5. Application to Fair Work Australia
If a vote is successful, the enterprise agreement must then be lodged with Fair Work Australia
within 14 days.
To approve the agreement Fair Work Australia must be satisfied that the agreement has been
genuinely agreed to by employees covered by the agreement and that it passes the Better Off
Overall Test (BOOT).
6. Approval and commencement
An enterprise agreement comes into operation seven days after approval by Fair Work
Australia. From this date onwards, employees’ terms and conditions are derived from the
enterprise agreement.
If you have any questions, please email tafe&[email protected]