What Is Australian Workplace Agreements
Australian workplace agreements, also known as AWAs, are individual agreements made between an employer and employee regarding the terms and conditions of employment. This type of agreement was introduced in 1996 as part of the Workplace Relations Act and was designed to provide flexibility for employers and employees alike.
Under an AWA, an employer and employee can negotiate and agree on a range of employment conditions, such as pay rates, working hours, leave entitlements, and performance expectations. These agreements must comply with the minimum standards set out in the National Employment Standards, which cover areas such as minimum wage, leave entitlements, and discrimination protections.
AWAs were controversial from their introduction, with critics arguing that they gave too much power to employers at the expense of employee rights. In particular, concerns were raised about the potential for AWAs to undercut award rates and conditions and create a race to the bottom in terms of wages and working conditions.
In response to these concerns, the Australian Government introduced changes to the AWA system in 2007, including the requirement that AWAs could only be made voluntarily by employees and that they must provide overall better conditions than the relevant award.
Despite these changes, the use of AWAs has declined in recent years, as other forms of workplace agreements have become more popular. This includes enterprise agreements, which are made between employers and groups of employees, and individual flexibility arrangements, which allow employees to vary certain conditions of their employment within the framework of their award or agreement.
Overall, while AWAs are still a valid option for some employers and employees, they are no longer as widely used as they once were. This reflects a broader shift in the Australian workplace relations landscape, towards more collective forms of bargaining and greater protections for employee rights.
