Enterprise Agreement Definition

An enterprise agreement is a legally binding agreement between an employer and employees that sets out the terms and conditions of employment. The agreement can be made at any time, but must be registered with the Fair Work Commission within 14 days of being signed.

Enterprise agreements must comply with the Fair Work Act 2009 and the National Employment Standards. They can include provisions for wages and salaries, hours of work, leave entitlements, superannuation, shift arrangements, dispute resolution procedures and more.

Enterprise agreements provide flexibility to tailor conditions to suit the specific needs of businesses and their employees. For example, an enterprise agreement could provide for different wage rates for different types of work or allow for more flexible working arrangements.

Once an enterprise agreement has been registered with the Fair Work Commission, it becomes the minimum standard that applies in the workplace – meaning that employees cannot be paid less than what is set out in the agreement.