Australian Retail Association

Workplace Agreements ITEAs

Individual Transitional Employment Agreements (ITEA's)

An individual transitional employment agreement (ITEA) is a new type of instrument which is available for limited use during the transition to the Government's new workplace relations system. An ITEA can only be made until 31 December 2009.

It is an individual written agreement between an employer and an employee setting out the terms and conditions of the employee's employment.

This includes things like the rate of pay, hours of work and other things relating to the employee's job.

An ITEA will be assessed against the no-disadvantage test to ensure that it does not disadvantage the employee against an applicable collective agreement or applicable award.

Employee Collective Agreements

An employee collective agreement is a written agreement, made between an employer and the employees, which sets out terms and conditions of employment.

An employee collective agreement comes into operation on the seventh day after the issue of a notice advising that the agreement has passed the no-disadvantage test.

Once an employee collective agreement starts to operate, it replaces any award that would otherwise apply. However, it does not replace a current ITEA or AWA or another collective agreement that has not reached its nominal expiry date.

An employee collective agreement overrides employment conditions in state or territory laws, if the agreement mentions those conditions. However, it cannot override state or territory laws which cover occupational health and safety, workers' compensation, discrimination, child labour, equal employment opportunity, or training arrangements.

Union Collective Agreement

A union collective agreement is a written agreement, made between an employer(s) and a union(s), which sets out the terms and conditions of employment. An agreement may cover businesses run by more than one employer.

A union collective agreement comes into operation on the seventh day after the issue of a notice advising that the agreement has passed the no-disadvantage test.

Once a union collective agreement starts to operate, it replaces any award that would otherwise apply. However, it does not replace a current ITEA or AWA or another collective agreement that has not reached its nominal expiry date.

A union collective agreement overrides employment conditions in state or territory laws, if the agreement mentions those conditions. However, it cannot override state or territory laws which cover occupational health and safety, workers' compensation discrimination, child labour, equal employment opportunity, or training arrangements.

Employer Greenfield Agreement

An employer greenfields agreement is an agreement in relation to a new project, business or undertaking which the employer is proposing to establish. When making an employer greenfields agreement the employer must not have any employees employed in the new project, business or undertaking. After a greenfields agreement has started to operate and employees have been employed, the agreement may be changed by making a variation.

An employer greenfields agreement comes into operation on the day that the agreement is lodged.

After it is lodged, the Workplace Authority will determine whether or not the agreement passes the no-disadvantage test. The no-disadvantage test ensures that the agreement does not, on balance, reduce the overall terms and conditions of employment of the employees whose employment will be subject to the agreement. This generally is a comparison between the terms of the agreement and the terms of a relevant award or former state award.

If the agreement does not pass the no-disadvantage test and the agreement is not varied within the required time period so that it does pass the no-disadvantage test, it will cease to operate. The employees whose employment was covered by the agreement may be entitled to compensation.

Once an employer greenfields agreement starts to operate, it replaces any award that would otherwise apply. For an employee however, it does not replace a current ITEA or AWA or another collective agreement that has not reached its nominal expiry date.

An employer greenfields agreement overrides employment conditions in state or territory laws, if the agreement mentions those conditions. However, it cannot override state or territory laws which cover occupational health and safety, workers' compensation, discrimination, child labour, equal employment opportunity, or training arrangements.

A greenfields agreement would have been made and lodged with the Workplace Authority before any employees covered by the agreement were hired. When new employees are employed, a variation may be negotiated.

Union Greenfield Agreement

A union greenfields agreement is an agreement between a union(s) and an employer(s) in relation to a new project, business or undertaking which the employer is proposing to establish. The agreements are negotiated between the employer and a union on behalf of your future employees. An agreement may cover businesses run by more than one employer.

A union greenfields agreement comes into operation on the day that the agreement is lodged. After it is lodged, the Workplace Authority will determine whether or not the agreement passes the no-disadvantage test. The no-disadvantage test ensures that the agreement does not, on balance, reduce the overall terms and conditions of employment of the employees whose employment will be subject to the agreement. This generally is a comparison between the terms of the agreement and the terms of a relevant award or former state award.

If the agreement does not pass the no-disadvantage test and the agreement is not varied within the required time period so that it does pass the no-disadvantage test, it will cease to operate. The employees whose employment was covered by the agreement may be entitled to compensation.

Once a union greenfields agreement starts to operate, it replaces any award that would otherwise apply. However, it does not in relation to an employee replace a current ITEA or AWA or another collective agreement that has not reached its nominal expiry date.

A union greenfields agreement overrides employment conditions in state or territory laws, if the agreement mentions those conditions. However, it cannot override state or territory laws which cover occupational health and safety, workers' compensation discrimination, child labour, equal employment opportunity, or training arrangements.

Multiple Business Agreement

An employer MUST obtain authorisation from the Workplace Authority Director to make a multiple business agreement.

Lodging a multiple business agreement without authorisation may result in the imposition of a fine up to $33,000.

A multiple business agreement is an agreement that would be a collective agreement except for the fact that it relates to any combination or combinations of:

  • one or more single businesses
  • one or more parts of single businesses carried on by one or more employers.

A multiple business agreement can be one of the following:

  • an employee collective agreement
  • a union collective agreement
  • a union greenfields agreement
  • an employer greenfields agreement.