Certified agreements are legally binding agreements between employers and employees that outline the terms and conditions of employment. These agreements are created through a negotiation process between the two parties, with the aim of creating a fair and flexible work arrangement that benefits both sides.
Certified agreements differ from other employment contracts in that they are certified by the Fair Work Commission (FWC). This means that they meet the legal requirements set out by the commission, including minimum entitlements for employees such as wages, working hours, and leave entitlements.
There are two types of certified agreements: enterprise agreements and individual agreements. Enterprise agreements are made between an employer and a group of employees in a particular workplace or industry. These agreements can cover a wide range of employment conditions, from wages and hours to training and development opportunities. Individual agreements, on the other hand, are made between an employer and an individual employee. These agreements are less common than enterprise agreements and usually only apply to senior executives or highly skilled workers.
To be certified by the FWC, agreements must meet a number of requirements. Firstly, they must not contain any unlawful content, such as terms that discriminate against certain employees. Secondly, they must provide employees with overall better conditions than what is required by the relevant modern award or legislation. Finally, the agreement must not undermine the fair and democratic collective bargaining process.
One of the benefits of certified agreements is that they create greater flexibility for both employers and employees. For example, enterprise agreements can allow for greater levels of scheduling flexibility, creating a work-life balance that suits the needs of employees. Additionally, certified agreements can provide greater job security for workers, as they provide a clear framework for the terms and conditions of employment.
Overall, certified agreements are an important part of the Australian industrial relations landscape. By providing a legally binding agreement that balances the needs of employers and employees, they create a fair and flexible work environment that benefits both parties.