Like to know how an Enterprise Bargaining Agreement (EBA) can grow your business and save it money?
If growing your business, successfully tendering for projects, saving money on human capital costs and managing your employee relations effectively sounds desirable, then read on, because your business can benefit from an Enterprise Bargaining Agreement ( EBA ).
What is an EBA?
An EBA is a legally binding agreement governing how your business will engage, remunerate and manage its employees. An EBA replaces the award conditions that would ordinarily apply to an employee (awards don’t apply when an employer has a registered EBA covering its employees). It allows employers and employees to enter into wage arrangements without the need for Union involvement and establishes binding employment conditions that are tailored to suit the employer’s operations.
An EBA can also save you time and money because you will no longer have to comply with the complexities of multiple awards that apply to employees.
How can an EBA grow your business?
Companies running big projects now expect businesses who wish to supply products or services to their project to have an EBA in place because of the key benefits delivered by an EBA such as:
- Labour Forecasting Predictability . An EBA locks in pay rates for up to 4 years, protecting a business from industrial action which in turn provides site stability.
- Compliant Employee Relations. An EBA contains mandatory provisions that are compliant with Fair Work legislation. This means that when you supply workers to projects or sites, the company running the project can be confident that your workplace relations are compliant with the relevant workplace laws and National Employment Standards.
- Protection from Industrial Action. If your business has an EBA, no Protected Industrial Action can be taken until its expiry (up to 4 years).
- A business can tailor an EBA to suit its operational demands.
- A Simplified Single Industrial Instrument of Employment. An EBA means one documentgoverning how your business will engage, remunerate and manage its employees, rather than having to comply with multiple awards.
All of these benefits are attractive for companies when they are procuring suppliers for big projects,so the secret of successful tendering, whether it’s for a government or privately funded project, is to ensure that your business has an EBA in place.
A prime example – how an EBA can open up opportunities for your business
The Australian Government funds many of the large building and construction projects in Australia. Companies must meet the requirements of the Building Code to work on these projects. Meeting the requirements of the Building Code can open up more opportunities for your business to obtain Australian Government funded construction work.
To meet the requirements of the Building Code, employers must comply with the Fair Work (Building Industry) Act 2012 and the Fair Work Act 2009 (FW Act). A registered EBA complies with both of these pieces of legislation ensuring the workplace relations component of your business meets the requirements of the Building Code.
How does an EBA work?
A registered EBA is an agreement reached privately between the employer and its employees on employment conditions. It provides an employer with the freedom to negotiate with its employees on matters such as pay rates, allowances and penalty rates, rather than having to comply with the conditions set out in modern awards.
In order to register an EBA, the EBA must be voted on and approved by the employees. After a successful vote, the EBA is lodged with the Fair Work Commission. To approve an EBA, the Fair Work Commission must be satisfied that it has been genuinely agreed to by the employees covered by the agreement, and that it passes the Better Off Overall Test (BOOT). Once registered with the Fair Work Commission, an EBA can operate for up to 4 years and can apply to current and future employees employed during the 4 year operational period.
Would you like to know more?
At Capital Legal we manage the EBA process from start to finish. This includes drafting of the EBA, bargaining with employees, assisting with the voting process, lodging the EBA with the Fair Work Commissionand everything in between.
BOOK NOW: COMPLIMENTARY Workplace Relations Health Check for Resonate Clients
This is your chance to find out if your business is compliant with current workplace laws and discuss employee issues such as discipline, poor performance and bullying and harassment. For a limited time, Capital Legal is offering complimentary workplace relations health checks for Resonate clients . A health check involves a Workplace Relations lawyer assessing key workplace practices in your business and examining ways to improve workforce structure, reduce the risk of employee claims and increase workplace efficiency and compliance.
To find out more, call Julie Granton 08 9364 5444, email Julie@capital-legal.com.au or contact your Resonate Accountant info@resbc.com.au.
