Fair Work Act 2009 Research Paper

1259 Words3 Pages

Modern awards under Part 2-3 of the Fair Work Act 2009 (Cth) (FW Act) form the foundation of employment terms and conditions in Australia’s contemporary federal industrial relations system and are defined at a national or industry-specific level. Part 2-4 of the FW Act builds on this national system of awards by regulating enterprise agreements made between national employers and national system employees. These agreements make it possible for an employer to tailor the needs specific to his/her employees by privately negotiating with employees on terms and conditions of employment that are not covered by an award or statute. Traditionally, the national award scheme along with centralized collective bargaining was the standard process for negotiating …show more content…

These are best encapsulated under s 171 of Part 2-4 where the objectives of enterprise agreements are summarized ‘to provide a simple, flexible and fair framework that enables collective bargaining in good faith, particularly at the enterprise level, for enterprise agreements that deliver productivity benefits’ and ‘to enable FWA to facilitate good faith bargaining and the making of enterprise agreements…’ To support this objective, the FW Act in comparison to modern awards, which are subject to more prescription, less heavily regulates enterprise agreements by statute. This is to accommodate the flexibility that is evident in modern employment relationships, and allows employers and employees to negotiate on a wide range of matters specific to the needs of that particular workplace. Essentially, by structuring wages and conditions appropriate to a specific enterprise, the workplace will be more efficient and productive. In order to facilitate this tailored arrangement but remain regulated and prevent an uneven balance of power, the FW Act describes content that is lawfully permitted when constructing an enterprise agreement, and explicitly outlines content to be included, and content that is unlawful to …show more content…

The ongoing support towards enterprise agreements has been demonstrated over time through the mentioned legislations was governed by globalization, which, through a rapidly changing market economy and rise of advanced technologies, saw a change in the employment relationship and the needs of workers. This instigated the move towards a coordinated flexibility and private negotiation scene at the enterprise level regulated by the AIRC in the form of enterprise agreements. Enterprise agreements have demonstrated multiple advantages by allowing a range of matters to be covered and regulated and the relative freedom of choice and action in regards to benefits awarded by the FWC for both parties. These include namely greater flexibility in matters specific to that particular enterprise or workplace, having direct employee involvement in negotiations without imposition by a third party, increased employee commitment and productivity, and liberty to go beyond the allowable matters of federal awards to include additional benefits such as higher wages, classification structures, and trade-offs. This is not to

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