An enterprise agreement is a legally binding agreement between employers and employees that sets out the terms and conditions of employment. On the other hand, an award is a legal document that outlines the minimum terms and conditions of employment for a particular industry or occupation.
One of the most common questions that arise in relation to enterprise agreements and awards is whether an enterprise agreement can override an award. The short answer is yes, it can, but with some limitations.
Firstly, an enterprise agreement must meet the requirements of the Fair Work Act 2009 and cannot be inconsistent with the National Employment Standards. The National Employment Standards are ten minimum employment entitlements that apply to all employees in Australia, regardless of the industry or occupation.
Secondly, an enterprise agreement must provide for terms and conditions that are more beneficial to employees than those provided in the relevant award. For example, an enterprise agreement may provide for higher rates of pay, additional leave entitlements or better working conditions than those provided in the award.
However, an enterprise agreement cannot provide for terms and conditions that are less beneficial to employees than those provided in the award. This means that if the enterprise agreement provides for lower rates of pay or fewer entitlements than those provided in the award, the award terms will prevail.
It is important to note that an enterprise agreement must be approved by the Fair Work Commission before it can come into effect. The Fair Work Commission will review the agreement to ensure that it meets the requirements of the Fair Work Act 2009 and that it is not inconsistent with the National Employment Standards or any other applicable laws.
In conclusion, an enterprise agreement can override an award, but only if it meets the requirements of the Fair Work Act 2009 and provides for terms and conditions that are more beneficial to employees than those provided in the award. It is important for employers and employees to seek legal advice before entering into an enterprise agreement to ensure that it complies with all applicable laws and provides for fair and reasonable terms and conditions of employment.
