What is an Enterprise Bargaining Agreement?

What is an Enterprise Bargaining Agreement?

An enterprise bargaining agreement (also known as an EBA) is an agreement that has been negotiated in good faith at an enterprise level between one or more national system employers and their employees.

The Fair Work Act 2009 (Cth) sets out three enterprise bargaining agreements that can be made:

1. Single Enterprise Agreement

This is where an agreement is made between between one employer or two or more single interest employers (they may be in a joint venture together) and their employees who are employed at the time the agreement is made and are covered under the agreement.

2. Multi-Enterprise Agreement

This is where two or more employers, who are not single interest employers have made an agreement with their employees who are employed at the time the agreement is made and are covered under the agreement.

3. Greenfields Agreement

This is where an agreement is agreed upon for the employer’s new enterprise prior to employing any employees and can be either a single-enterprise agreement or a multi-enterprise agreement. This agreement is usually made between the employer and an employee’s association.

What does an Enterprise Bargaining Agreement cover?

An enterprise bargaining agreement sets out the agreed terms and conditions of an employee’s employment with the enterprise. It sets out the agreed pay rate of the employees, which cannot be less than the amount in the Award for the same occupation.

Example of an Enterprise Bargaining Agreement

An example of an enterprise bargaining agreement is the Nurses EBA. In each Australian State, the State Government and the public nurses eventually came to an agreement which set out the terms and conditions and the pay rate for the nurses in the State public system.

Private sector nurses can also have an enterprise bargaining agreement – but usually with their private employer. For example, St John of God Healthcare has an EBA that covers the nurses employed in St John of God Healthcare in each of the States.

If you have a legal issue under an enterprise bargaining agreement, then you should contact an employment lawyer and also look into what additional assistance your union can provide.

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