The AAS had a unique characteristic in Australia: during the negotiation of a federal enterprise contract, a group of workers or a union without legal sanctions could take union action (including strikes) to pursue their demands. Organizations that are negotiators (employers, employers` organizations and trade unions) for a proposed enterprise agreement must disclose certain financial benefits that they (or certain related parties) may obtain (or could obtain) because of the length of the proposed agreement. Although there are no longer individual legal contracts under the Fair Work Act 2009, workers and employers can enter into an Individual Flexibility Agreement (IFA) that varies the terms of an enterprise agreement to meet the needs of the worker and employer. An enterprise agreement must have the following conditions: any enterprise agreement must include a concept of flexibility with individual modalities of flexibility. An enterprise agreement can be reached between one or more employers and two or more employees with their elected representatives. The Fair Work Act 2009 provides a simple, flexible and fair framework that helps employers and workers negotiate in good faith to enter into an enterprise agreement. For more information on agreement-based transitional instruments, including the modification and termination of these agreements, see www.fairwork.gov.au. An IFA can be terminated either by a written agreement between the employer and the worker, or by the employer or worker by written notification. Modern rewards require 13 weeks` notice, but this may be different in an enterprise contract (but no more than 28 days).

If the parties fail to agree on the terms of a proposed enterprise agreement, a representative of the negotiations may ask the Commission for assistance in fair work. Note: For requests for agreement with several companies or if you are about to start a series of sectoral negotiations that will result in the submission of a large number of applications for contract authorization. Communication to the Commission prior to the submission of the application will help the Commission to process applications in a timely and consistent manner. The Fair Work Commission will check company agreements to verify illegal content. The Fair Work Commission cannot approve an enterprise agreement containing illegal content. Fair Work Commission publishes enterprise agreements on this website. The trial can last for many weeks or months. Much research, meetings and discussions are required with employers, workers and negotiators. Before the process begins, employers must inform employees of their intention to negotiate and give them sufficient time to find an appropriate negotiator. On the one hand, collective agreements benefit at least in principle employers, as they improve « flexibility » in areas such as normal hours, flat-rate hourly wage rates and benefit conditions. On the other hand, collective agreements benefit workers, since they generally offer higher wages, bonuses, additional leave and higher rights (such as redundancy pay) than a bonus.

[Citation required] The proposed application for an enterprise agreement must be submitted to the Fair Labour Commission within 14 days of the date of filing or within an additional period of time, as permitted by the Fair Work Commission. The FWC will apply a strict need-based test, called the « Better Off Overall Test » against an enterprise agreement, to ensure that the worker has not been disadvantaged by the agreement. Negotiators are required to act in good faith in the process of negotiating a proposed enterprise agreement.