Enterprise Agreements in Australia: What Employees Need to Know
Last updated: June 2026
What Is an Enterprise Agreement?
An enterprise agreement (EA) is a collective agreement negotiated between an employer and a group of employees (or their union), then approved by the Fair Work Commission. It replaces the relevant modern award for those employees while it is in operation.
Enterprise agreements must:
- Leave employees better off overall compared to the award (the BOOT test)
- Include a genuine agreement-making process
- Be approved by a majority of employees who vote on it
What Can an Enterprise Agreement Cover?
Enterprise agreements can set out:
- Rates of pay (above award minimum)
- Hours of work and overtime arrangements
- Leave entitlements
- Allowances and penalty rates
- Dispute resolution procedures
- Flexible working arrangements
They cannot include terms that discriminate against employees or are contrary to the National Employment Standards (NES). NES entitlements apply on top of any enterprise agreement.
What Happens When an Enterprise Agreement Expires?
Enterprise agreements have a nominal expiry date: typically 4 years after approval. After expiry, the agreement continues to operate (it does not automatically revert to the award) until it is replaced or terminated.
Either party can apply to the Fair Work Commission to terminate an expired agreement in limited circumstances.
How to Find Your Enterprise Agreement
If you are covered by an enterprise agreement, your employer must give you a copy or tell you how to access it. Agreements are also publicly available on the Fair Work Commission website (fwc.gov.au).
Bargaining for a New Agreement
If your employer is negotiating a new enterprise agreement, employees have the right to be represented by a bargaining representative (including a union). The Fair Work Commission oversees the bargaining process and can intervene if bargaining is not occurring in good faith.