Approved Agreements

The parties approve the proposed company agreements between them (in the case of workers, the matter is put to the vote). The Fair Work Commission then evaluates them for approval. Since the enactment of the Fair Work Act, parties to Australian federal collective agreements have submitted their agreements to Fair Work Australia for approval. Before approving a company agreement, a tribunal member must be satisfied that the workers employed under the agreement are generally “better off” than if they were employed under the corresponding modern arbitration award. First, AAAs are individual agreements, while certified agreements are collective. In other words, while AWAs can be created with a group of employees, they can only apply for employees who sign them.

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