Enterprise agreements are agreements between an employer and employees that outline the terms and conditions of employment, including wages, benefits, and working conditions. These agreements are legally binding and typically have a lifespan of four years. However, what happens when an enterprise agreement expires?
One question that often arises is whether an expired enterprise agreement can be varied. The short answer is yes, an expired enterprise agreement can be varied, but the process is complex and time-consuming.
To vary an expired enterprise agreement, the employer must first notify the employees of their intention to vary the agreement. This notification must be given in writing and must include the details of the proposed variation, the reasons for the variation, and the expected date of commencement.
Once the notification has been given, the employer and employees must enter into negotiations to agree on the proposed variation. These negotiations can be lengthy and often require the involvement of a mediator or conciliator.
If the negotiations are successful and the proposed variation is agreed upon by both parties, the variation must be approved by the Fair Work Commission. The Commission will assess the proposed variation to ensure that it meets the requirements of the Fair Work Act 2009 and that the interests of the employees are protected.
If the Fair Work Commission approves the variation, it will become a legally binding part of the expired enterprise agreement. If the variation is not approved, the enterprise agreement will remain expired, and the employer and employees will need to renegotiate a new agreement.
In conclusion, an expired enterprise agreement can be varied, but the process is complicated and requires the agreement of both the employer and employees. Employers who are considering varying an enterprise agreement should seek legal advice and be prepared for a lengthy negotiation and approval process.