The paper "Industrial Relation & Workplace Change" is a wonderful example of an assignment on management. Under the Fair Work Act 2009, an enterprise is made between employers and employees at an enterprise level and encloses some mandatory stipulations that create room for individual flexibility plans. The terms within enterprise agreements are supposed to be more beneficial to employees when compared to National Employment Standards (NES) and in general much better than an appropriate modern award. For the approval of an agreement, it must first be checked whether it has met mandatory terms and its award must be better off than any modern award incorporated.
It is the duty of Fair Work Australia (FWA) to help in the establishment of such agreements and approving them, besides solving any dispute that may come up from the agreements (Glover & Patmore, 2010). There are three main enterprise agreements, namely, Single-Enterprise Agreement, multi-Enterprise Agreement, and Greenfields Agreement. Single business agreements are initiated between a single employer and the workers. The multi-enterprise agreement could be made amongst several employers with a common interest with their combined workers, like the case in franchise businesses.
Greenfields agreements are initiated, before employing, amongst the employers and the trade unions which is well placed in representing those potential workers. There are two categories of terms that are enclosed in enterprise agreement; basic and mandatory terms. Basic terms relating to enterprise agreement include rates of pay, allowances, standard working hours, leave, overtime rates and penalty rates, and authorized deductions from wages. For mandatory terms, it’ s a must for them to be enclosed in all agreements, they comprise of dispute resolution term, flexibility term, consultation term, and coverage term. It is good for both employees and employers to comprehend the underlying terms of operations of flexibility clause in either the award or agreement so as to adhere to standard conditions, as this will help to minimize cases of disputes.
For effective operation, the award clause must be enforced where there are genuine agreement and genuine needs of both the employer and employee. The flexibility of the award clause arises when an employee is better off than when the standard award was submitted.
The agreement should be written down and sealed by the signature of both parties.
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