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FAIR WORK ACT 2009 - SECT 172

Making an enterprise agreement

Enterprise agreements may be made about permitted matters

             (1)  An agreement (an enterprise agreement ) that is about one or more of the following matters (the permitted matters ) may be made in accordance with this Part:

                     (a)  matters pertaining to the relationship between an employer that will be covered by the agreement and that employer's employees who will be covered by the agreement;

                     (b)  matters pertaining to the relationship between the employer or employers, and the employee organisation or employee organisations, that will be covered by the agreement;

                     (c)  deductions from wages for any purpose authorised by an employee who will be covered by the agreement;

                     (d)  how the agreement will operate.

Note 1:       For when an enterprise agreement covers an employer, employee or employee organisation, see section 53.

Note 2:       An employee organisation that was a bargaining representative for a proposed enterprise agreement that is not a greenfields agreement will be covered by the agreement if the organisation notifies the FWC under section 183 that it wants to be covered.

Single-enterprise agreements

             (2)  An employer, or 2 or more employers that are single interest employers, may make an enterprise agreement (a single-enterprise agreement ):

                     (a)  with the employees who are employed at the time the agreement is made and who will be covered by the agreement; or

                     (b)  with one or more relevant employee organisations if:

                              (i)  the agreement relates to a genuine new enterprise that the employer or employers are establishing or propose to establish; and

                             (ii)  the employer or employers have not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the agreement.

Note:          The expression genuine new enterprise includes a genuine new business, activity, project or undertaking (see the definition of enterprise in section 12).

Multi-enterprise agreements

             (3)  Two or more employers that are not all single interest employers may make an enterprise agreement (a multi-enterprise agreement ):

                     (a)  with the employees who are employed at the time the agreement is made and who will be covered by the agreement; or

                     (b)  with one or more relevant employee organisations if:

                              (i)  the agreement relates to a genuine new enterprise that the employers are establishing or propose to establish; and

                             (ii)  the employers have not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the agreement.

Note:          The expression genuine new enterprise includes a genuine new business, activity, project or undertaking (see the definition of enterprise in section 12).

Greenfields agreements

             (4)  A single-enterprise agreement made as referred to in paragraph (2)(b), or a multi-enterprise agreement made as referred to in paragraph (3)(b), is a greenfields agreement .

Single interest employers

             (5)  Two or more employers are single interest employers if:

                     (a)  the employers are engaged in a joint venture or common enterprise; or

                     (b)  the employers are related bodies corporate; or

                     (c)  the employers are specified in a single interest employer authorisation that is in operation in relation to the proposed enterprise agreement concerned.

Requirement that there be at least 2 employees

             (6)  An enterprise agreement cannot be made with a single employee.



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