Types of agreements

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Enterprise agreements

Enterprise agreements are collective agreements provided for by the Fair Work Act 2009 from 1 July 2009.

Enterprise agreements are agreements made at the enterprise level that contain terms and conditions of employment.

An enterprise agreement can be made between one or more employers and two or more employees with their chosen representatives.

In the case of a greenfields agreement, where there are no employees employed, the employer negotiates with one or more relevant employee organisations (unions).

The Fair Work Commission assesses and approves enterprise agreements. It can also assist in the process of making agreements and can deal with disputes arising under the terms of an agreement. Before the Commission can approve an agreement, it must be satisfied that the agreement meets the requirements for approval set out in the Fair Work Act 2009, including that the employees will be 'better off overall' under the agreement than they would be if the relevant award applied.

The Fair Work Act also sets out requirements for bargaining for a proposed enterprise agreement.

If you are making a multi enterprise agreement application or if you are about to commence an industry bargaining round that will result in a large number of agreement approval applications being lodged; notifying the Commission prior to applications being made will assist the Commission in dealing with the applications in a timely and consistent manner.

Why make an enterprise agreement?

Modern awards cover a whole industry or occupation and provide a safety net of minimum pay rates and employment conditions. Enterprise agreements can be tailored to meet the needs of particular enterprises.

Continuous operation of agreements

Under the Fair Work Act 2009, agreements continue to operate after their nominal expiry date until they are replaced or terminated by application to the Commission. Through provisions in the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009, agreements made under previous legislation continue to have effect as agreement-based transitional instruments.

Types of enterprise agreements

Single enterprise agreements

An employer, or two or more employers that are single interest employers, may make an enterprise agreement with the employees who are employed at the time the agreement is made and who will be covered by the agreement.

Single interest employers

Two or more employers are single interest employers if the employers are:

engaged in a joint venture or common enterprise, or
related bodies corporate, or
specified in a single interest employer authorisation that is in operation in relation to the proposed enterprise agreement concerned.

Most of the agreement applications made at the Commission are for single enterprise agreements.

To view the steps involved in making a single enterprise agreement, see the Making an agreement section of our website.

To view the approval process and the relevant forms to make a single enterprise agreement, see our Approval process page.

For more information, see the benchbook.

Greenfields agreements

Greenfields agreements are enterprise agreements made in relation to:

a genuine new enterprise (including a new business, activity, project or undertaking) that one or more employers are establishing, or propose to establish; where
the employer or employers have not yet employed any of the people who will be necessary for the normal conduct of the enterprise and will be covered by the agreement.

Greenfields agreements may be single or multi-enterprise agreements.

The process for making a Greenfields agreement is different to that of other agreement types for example there are no employees and there is no vote on the agreement.

To view the approval process and the relevant forms to make a greenfields enterprise agreement, see our Approval process page.

For more information, see the benchbook.

Multi enterprise agreements

Two or more employers that are not single interest employers may make an enterprise agreement with the employees who are employed at the time the agreement is made and who will be covered by the agreement.

A special stream of bargaining for multi-enterprise agreements is available to enable low-paid employees who have not historically participated in enterprise-level collective bargaining to make a multi-enterprise agreement. The Fair Work Commission can make low paid authorisations that allow access to this stream.

If you are making a multi enterprise agreement or range of related multi enterprise agreements, it may be useful to contact the agreements team at the Commission prior to lodging an application. The agreements team can help you lodge a compliant application and can provide you with assistance. You can contact the agreements team at member.assist@fwc.gov.au

To view the approval process and the relevant forms to make a multi enterprise agreement, see the Approval process page.

For more information, see the benchbook.

Other types of agreements

If you require further assistance in understanding what agreement applies to you, please visit the Agreements section of the Fair Work Ombudsman website.

Updated time

Last updated

27 January 2021

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