Aged Care Enterprise Agreement Template for Australia

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What is a Aged Care Enterprise Agreement?

The Aged Care Enterprise Agreement serves as a crucial industrial instrument in Australia's aged care sector, negotiated between aged care providers and their employees (often represented by unions). This agreement type is specifically designed to meet the requirements of the Fair Work Act 2009 while addressing the unique operational needs of aged care facilities. It is used when establishing facility-specific employment conditions that exceed the minimum standards set by the Aged Care Award 2010, particularly in areas such as shift arrangements, special allowances, and career development opportunities. The agreement typically remains in effect for 3-4 years and must be approved by the Fair Work Commission to ensure it meets the Better Off Overall Test (BOOT).

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Imad Mohammed Nazar

Legal Engineer, GenieAI

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A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

Australia

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Aged Care Enterprise Agreement

An Aged Care Enterprise Agreement is a legally binding workplace agreement that governs the employment relationship between aged care facility operators and their staff in Australia. Operating under the Fair Work Act 2009, this agreement type allows aged care providers to establish customised employment conditions that better reflect their operational needs while ensuring employees receive terms that exceed the minimum standards of the Aged Care Award 2010.

When do you need this document?

You need an Aged Care Enterprise Agreement when establishing or updating employment conditions at your aged care facility that go beyond the basic award requirements. This is particularly important when implementing new shift patterns to meet 24/7 care demands, introducing performance-based incentives, or establishing career progression pathways for nursing and care staff. Many aged care operators use enterprise agreements to attract and retain skilled workers in a competitive employment market, especially when offering enhanced leave entitlements, professional development funding, or facility-specific allowances for tasks like medication administration or dementia care.

Key legal considerations

Your enterprise agreement must pass the Better Off Overall Test (BOOT), demonstrating that covered employees are genuinely better off under the agreement compared to the relevant modern award. Critical clauses include dispute resolution procedures, consultation requirements for major workplace changes, and flexibility arrangements that comply with the National Employment Standards. You must also address work health and safety obligations specific to aged care environments, including manual handling requirements and infection control protocols. The agreement should clearly define employee classifications, overtime rates, and any industry-specific allowances while ensuring compliance with aged care quality standards that may impact working conditions.

Legal requirements in Australia

Under Australian law, your enterprise agreement must be approved by the Fair Work Commission before taking effect. The agreement requires genuine agreement from the majority of affected employees through a formal voting process, with at least seven days' access period before voting commences. You must ensure the agreement covers all employees performing work in the aged care classification structure and complies with the Aged Care Quality and Safety Commission's worker screening requirements. The agreement must include a nominal expiry date not exceeding four years from approval and contain a flexibility term allowing individual arrangements. All provisions must align with the Fair Work Act's requirements for enterprise agreements, including prohibition of unlawful terms and inclusion of a dispute settlement procedure covering all disputes about matters arising under the agreement.

GOVERNING LAW

Applicable law

This Aged Care Enterprise Agreement is drafted to comply with Australia law. Key legislation includes:

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