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An Australian Workplace Agreement (AWA) is a written agreement between an employer and an employee about the employee’s terms and conditions of employment. The introduction of the ‘work choices legislation’ gives an AWA precedence over all other federal and state agreements, awards and industrial instruments.
An AWA cannot override state laws dealing with occupational health and safety, workers’ compensation, long service leave or public holidays but overrides all other conditions of employment in your business.
An AWA enables the employer and employee flexibility in working conditions and remuneration.
Am I eligible to make Australian Workplace Agreement
The main categories of employers who can make valid AWAs with their employees are those where:
- The employer is a constitutional corporation (Pty Ltd, Ltd) or
- The employer is the Commonwealth of Australia, or
- The primary workplace of the employee is in a territory, (e.g. ACT or NT) or Victoria.
If your business operates through a ‘trust’, partnership or you are a sole trader you are not eligible to make an AWA and your State Industrial Relations legislation applies to your business. As there are grey areas in the detail you would be prudent to seek advice. Biz Momentum can answer your questions in this regard.
My employees want a four-day working week but I don't want to incur penalty rates and overtime – what can I do?
If your employees want a four-day working week, and this suits your particular business operations, an Australian Workplace Agreement can include a four-day working week without penalty rates and overtime payments in certain circumstances. Your employees, however, must genuinely consent and agree to these terms and conditions.
I own a business where my employees' work hours are unpredictable – what can I do?
You can have an Australian Workplace Agreement written to reflect the unique requirements of your business.
You may in certain circumstances provide that your employees start and finish outside the span of ordinary hours of work without penalty rates and overtime and third party intervention.
Can I pay my employees an all-inclusive rate of pay that includes cashing out of annual leave and other employee entitlements?
Yes, an AWA can be written to cash out some annual leave, leave loading, and bargain away other conditions that the employer and employee do not consider necessary to the employment relationship to obtain an upfront higher hourly rate.
I have a problem with employee absenteeism – what can I do?
An Australian Workplace Agreement gives you flexibility. Some employers include incentive clauses into their Agreements that provide the employee with an incentive to reduce sick leave that isn't genuine.
Is Consent required to enter into an Australian Workplace Agreement?
All Australian Workplace Agreements must be entered into with genuine consent of both parties. Asking a new employee to sign an AWA as a pre condition of employment is not considered duress under Work Choices.
Must an Australian Workplace Agreement be Lodged?
An AWA becomes immediately operational, with effect, on lodgment of the AWA with the Office of Employment Advocate.
It is the responsibility of the Office of Employment Advocate to ensure an AWA does not contain prohibited content.
How long does my Australian Workplace Agreement last?
An Australian Workplace Agreement has a maximum life of five years.
Grow your business with certainty of wages and conditions!
Remember, operating your business without a formal written agreement between you and your employee is at risk to claims before industrial tribunals and courts. An Australian Workplace Agreement goes a long way towards protecting your business.
Biz Momentum has written many Australian Workplace Agreements, in a number of Australian states, for numerous business clients. We've assisted our clients with a range of simple to very complex agreements.
Contact us today and see how we can help your business move forwards! Whenever you consider embarking on a new employment agreement and arrangements you are prudent to seek advice. Biz Momentum can assist you.
Further Information
Philip Lye is CEO of Biz Momentum Pty Ltd. He works with small to medium businesses to help them cut through the maze of people matters. Clients get specific actionable strategies to protect their business interests. For more information on Philip, visit www.biz-momentum.com and subscribe to his free monthly e-zine.
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