Workplace agreements - The People in Dairy

It is important to understand the difference between a common law employment contract and a workplace agreement. Whilst a common law contract exists whenever you engage an employee regardless of whether it is verbal or written, the term workplace agreement as used in industrial law means a formal document which contains specific terms and which is formally lodged with an authority.

The decision about whether you put in place a workplace agreement will depend upon the impact of the relevant award on the employment needs of your business. Because workplace agreements, which have been formally lodged, stand in place of awards, employers are able to modify certain terms of the award that do not suit the needs of their business provided the employees are not worse off financially as compared to the award. This can be particularly useful for dairy farmers because of the non-standard hours of this work.

A workplace agreement is different to a common law employment contract in a number of important ways.

A workplace agreement is a formal written document which must by law contain certain terms.
A workplace agreement must be formally lodged with an authority.
A workplace agreement can be inconsistent with an award so long as the employee is not at a disadvantage overall.
Specific documents must be completed before a workplace agreement can be lodged, and failure to do so can lead to penalties.
Specific documents must be given to the employee to read outlining their rights at law before a workplace agreement can be lodged, and failure to do so can lead to penalties.
The federal industrial laws about workplace agreements have changed a number of times in recent years. Before the WorkChoices laws came into effect in March 2006, workplace agreements were called Certified Agreements (agreements between an employer and a group of employees) and Australian Workplace Agreements or AWAs (agreements between an employer and an individual employee).

The WorkChoices laws retained AWAs but changed Certified Agreements to Collective Agreements.

The Fair Work laws which came into effect in 2008 created Individual Transitional Employment Agreements or ITEAs (special individual agreements which could only be made up until the end of 2009) and in July 2009 changed Collective Agreements to Enterprise Agreements.

The federal lndustrial laws about workplace agreements changed on 1 January 2010.

National system employers can enter into enterprise agreements under the federal industrial laws.

Non national system employers in WA can use the state industrial relations system to enter into a workplace agreement with their employees.

As the type of workplace agreement and the rules which apply vary it is a good idea to use your state farming organisation or legal adviser to help you write an appropriate and effective agreement.

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Federal enterprise agreements

There are three types of workplace agreement in the federal system:

single-enterprise agreements;
multi-enterprise agreements;
greenfields agreements (for new workplaces without employees).
The most common type of workplace agreement in the farming industry will be the single-enterprise agreement which is an agreement between a single employer and their employees or a group of employees.

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