An enterprise agreement roll over is the renewal of an existing agreement between an employer and employees in a company. This type of agreement is common in Australia, where it is governed by the Fair Work Act 2009.
The enterprise agreement is a legal document that outlines the terms and conditions of employment within a company. It covers a wide range of issues, including wages, working hours, leave entitlements, and other conditions of employment. The agreement is negotiated between the employer and employees of the company and must be approved by the Fair Work Commission.
When an enterprise agreement is due to expire, the parties involved can opt to renew the agreement through a process known as a roll over. This process involves the continuation of the agreement for a further period of time, usually for another three to four years. It enables the parties involved to avoid the need to start negotiations from scratch, saving time and resources.
To initiate a roll over process, the employer must give a notice of intention to the employees of the company. This notice must be given no less than 90 days before the expiry of the enterprise agreement. The notice must include the terms of the proposed roll over, and a copy of the agreement.
Employees are then given the opportunity to take part in a vote to accept or reject the proposed roll over. The vote is conducted by the Fair Work Commission, and a majority of employees must vote in favor of the agreement for it to be accepted.
There are several benefits to an enterprise agreement roll over. Firstly, it provides consistency and stability for both employers and employees. It allows for the continuation of existing terms and conditions, which can be beneficial for businesses that require long-term planning and investment.
Secondly, a roll over can help to avoid the potential for industrial action or disputes that can arise during the negotiation of a new enterprise agreement. By renewing an existing agreement, the parties involved can avoid the stress and uncertainty that can be associated with bargaining for new terms and conditions.
In conclusion, an enterprise agreement roll over is a process that involves the renewal of an existing agreement between an employer and employees in a company. It provides consistency and stability for both parties and can help to avoid potential disputes and industrial action. It is a valuable tool for businesses that require long-term planning and investment.