Document background
Employment Bargaining Agreements are fundamental instruments in Australian workplace relations, governed by the Fair Work Act 2009. These agreements are used when an employer wishes to establish standardized employment terms and conditions for a group of employees, often improving upon industry award minimums. An Employment Bargaining Agreement is particularly valuable for organizations seeking to create consistent workplace conditions while potentially streamlining administration of employee entitlements. The agreement must pass the Better Off Overall Test (BOOT) administered by the Fair Work Commission, ensuring employees are better off than under the relevant modern award. Once approved, it operates to the exclusion of any modern award that would otherwise apply, typically with a nominal expiry date of three to four years.
