Simply put, premiums set the minimum standards that an employer in your sector can pay for your type of work. The majority of workers have an employment contract and not an enterprise contract. There is no obligation to have an enterprise agreement. The development of an employment contract to comply with existing legislation and to optimize the position of the employer or worker has many complexities and intricacies. It is worth having employment contracts established or audited regularly by an employment expert to ensure compliance with existing legislation, to highlight problems and to develop additional provisions that might be desirable. In an enterprise agreement, it is possible to reorganize different categories of leave or working time or remuneration as long as the agreement goes through the Better Off Overall Test (BOOT): overall, employees must be better off than they would be below the price. For example, if a flat rate plus the base rate is paid instead of the base rate plus overtime, the overall income must be higher than what would be paid for the corresponding model of overtime work under the premium. A labour agreement differs, in many ways, from a collective agreement. Unions may be parties to enterprise agreements or the agreement can be reached directly with workers. Workers are entitled to union (or other) representation during the negotiation process if they wish. As a general rule, all the conditions contained in a price and contained in an EBA apply. If there is an EBA, it crushes the premium and can provide additional or modified conditions. In the federal system, there are three types of labour agreements: your union negotiates your price on your behalf.
This negotiation is funded by union members, even though it applies to all workers. Test your knowledge of rewards and chords in our Workplace Basics Quiz. It is important to understand the difference between a common class agreement and an employment contract. While there is a common law contract when you mandate a worker, whether it is an oral or written contract, the term employment contract, as used in labour law, refers to a formal document containing certain clauses and formally submitted to a public authority.