As a general rule, an enterprise agreement has the following advantages: unions may be parties to enterprise agreements or the agreement can be concluded directly with workers. Workers are entitled to union (or other) representation during the negotiation process if they wish. An Australian Labour Agreement (AWA) was a kind of formalized individual contract negotiated between an employer and a worker in Australia that existed from 1996 to 2009. Employers could propose an AWA as a condition of employment. They were registered by labour counsel and did not require a dispute resolution procedure. These agreements only worked at the federal level. The AWAs were individual written agreements on the conditions of employment between the employer and the worker in Australia, in accordance with the 1996 Labour Relations Act. An AWA could repeal conditions of employment in national or territorial laws, with the exception of those relating to occupational health protection, workers` compensation or training agreements. An AWA only had to meet Australia`s highest standard of fair payment and minimum conditions. The agreements were not obligated to introduce effective dispute resolution procedures and could not contain prohibited content. The agreements were no more than five years old; approved, encouraged and registered by the Employment Agency; Excluding a premium and prohibited trade union actions with regard to the details of the agreement for the duration of the agreement. The introduction of AWA has been a highly controversial topic of labour relations in Australia. Enterprise agreements must correspond to the “best overall test” (BOOT) compared to the corresponding premium.
In reality, this means that the worker must turn better financially if he is at the end of the contract than he would have been under the premium. An employee is not “premium-free” simply because the weekly wage or hourly rate is higher than what is required by the bonus. A premium worker is covered by the premium and is entitled to all benefits specified in the bonus, usually on the basis of the rate of pay payable. Working hours, overtime and leave rights are often problematic when overheated payments have to cover all rights, but the worker has not been clearly informed. Business agreements can be tailored to the needs of some companies. An agreement should be overall better for an employee when compared to the corresponding bonuses or rewards.