An enterprise agreement, also known as an enterprise bargaining agreement or EBA, is a legally binding document between an employer and employees that sets out the terms and conditions of employment. These agreements are negotiated by employers and employees, or their representatives, and can cover a wide range of issues, such as wages, hours of work, leave entitlements, and dispute resolution procedures.
So, who is covered by an enterprise agreement? The short answer is that any employee who is covered by a modern award can be covered by an enterprise agreement. Modern awards are industry or occupation-specific instruments that set out minimum terms and conditions of employment, such as minimum wages and allowances.
An enterprise agreement can be made between an employer and one or more of its employees. However, for an enterprise agreement to be approved by the Fair Work Commission, it must be supported by a majority of employees who vote in a formal ballot. This means that the terms and conditions of the enterprise agreement will only apply to those employees who vote in favor of it.
Employers and employees covered by an enterprise agreement must also ensure that the agreement complies with the National Employment Standards (NES), which are minimum employment standards that apply to all employees covered by the Fair Work Act 2009. The NES includes entitlements such as annual leave, personal/carer`s leave, and parental leave.
It`s important to note that employees who are not covered by a modern award are not automatically covered by an enterprise agreement. For example, senior executive employees or employees who are employed on an individual contract may not be covered by an enterprise agreement.
In conclusion, an enterprise agreement can cover any employee who is covered by a modern award and has voted in favor of it. Employers and employees covered by an enterprise agreement must also ensure that the agreement complies with the National Employment Standards. If you`re unsure whether you`re covered by an enterprise agreement, it`s always best to check with your employer or consult a legal professional.