Australian Workplace Agreements - How They Work For You

The employer / employee relations environment hasAWAs have a life of 3 years, however if they are
been constantly evolving during the last 25 years. Incarefully written can continue long after the 3 year
Australia, as in many western nations, the balanceexpiry date.
between employers and employees has shifted backBy way of example you may own a farm where
and forwards usually in response to supply andseasonal workers are required. Your AWA can be
demand.designed to reflect seasonal requirements that suite
At times worker organisations, such as unions, haveboth worker and employer.
caused considerable problems for employers whileYou employees may want a 4 day working week.
arguing that unionism protects workers pay andYour AWA can tailor this requirement into the
conditions.agreement and without payment of penalty rates for
While this has been true in some arenas it has alsoworking in excess of 8 hours per day.
been true that this has come at the expense ofTake Australian Zoo owned by Steve and Terri Irwin.
enterprise flexibility.Because of their unique requirements in caring for
Small business today needs the flexibility to rapidlyanimals AWA's have provided flexible working times.
respond to technological and sociological change andWith a workforce of 450 people they have been able
the old award system and its archaic inflexibility haveto grow their business in the certainty of wages and
to change.conditions.
In the late 80's and 90's there was a shift towardsOther advantages of an AWA may be that an
enterprise bargaining agreements and collectiveemployee is able to cash out sick leave at the end of
agreements which gave an individual enterpriseevery year reducing the amount of sick leave taken
increasing workplace flexibility.and providing an added incentive for turning up for
These agreements, at the enterprise level, wherework each day. It all adds up to flexibility.
parties were normally unions on behalf of workers andAn AWA can override state and federal award
small business went some ways in achieving ofprovisions, as long as the terms and conditions of the
flexibility but still retained some of the old thinking andAWA overall do not disadvantage the employee
inflexible practices. In essence the old award systemwhen compared to the award. This gives the
continued to be a reference point for minimum wagesemployer and employee certainty of conditions in the
and entitlements for workers.employment relationship.
In 1996 the federal government introduced AustralianA business without a written formal agreement
Workplace Agreements (AWA) which wasbetween worker and the employer is at risk to claim
specifically designed with individual business andbefore industrial tribunals and courts.
worker in mind.Certainly documenting and agreeing on individual
At its fundamental level an AWA is a formal writtenworkplace wages and conditions means certainty of
agreement between an employer and an individualcost and the ability to be competitive.
employee. A significant advantage to workers andCash, Costs and People are the number one ticket
business is that an AWA can be tailored to cover allitem in many businesses today.
particular requirements for your business.