If you are an employee, you may be covered by an 'award' or a 'collective workplace agreement'. You may also be asked to sign an 'Individual Transitional Workplace Agreement' (ITEA). This section explains what these terms mean.

Awards

An award is an order, made by the Australian Industrial Relations Commission, which sets out various terms and conditions for employment in various industries. Most workplaces are covered by an award. In recent years, awards have undergone a number of changes and fewer matters are covered by them, but they may still be relevant to identifying what your entitlements are. For example, many awards contain anti-discrimination clauses, which may be important if you have parental, family or carer responsibilities or otherwise suffer discrimination in employment.

In order to find out whether your employment is covered by an award, speak to your union, go to Business Victoria, Workplace Authority or ring the Workplace Infoline on 1300 363 264.

Workplace Agreements

There are two main types of workplace agreement. An individual workplace agreement, which is made between an employer and an individual employee, is called an 'Individual Transitional Employment Agreement' (ITEA). A workplace agreement between the employer and a union or group of employees is called a collective agreement. Both kinds of workplace agreement must contain certain minimum standards and must pass the No Disadvantage Test.

In the past, there used to be other types of workplace agreements, such as Australian Workplace Agreements (AWAs). AWAs can no longer be made, but some employees still work under them or under other old types of agreement. The effect of the old agreements differs, depending on the agreement. For more information, speak to your union, visit the Workplace Authority or call the Workplace Infoline on 1300 363 264.

ITEAs

Where individual workplace agreements are made between an employer and an employee, under the Workplace Relations Act 1996, they are known as Individual Transitional Employment Agreements or ITEAs. There are very limited circumstances in which an employer may ask you to enter into an ITEA. For example, only employers who previously used certain types of individual employment agreements are allowed to make ITEAs with new or existing employees. ITEAs can only be made with new employees before they start employment or within the first 14 days of employment. ITEAS can be made with existing employees only if they are already employed under an ITEA or other specified individual employment agreement. After 31 December 2009, ITEAs cannot be made and it is expected that new laws will be in place to regulate working relationships.

An employer who is entitled to use an ITEA can generally make signing of an ITEA a condition of employment (though there are exceptions). However, duress (unlawful force) cannot be applied in connection with an ITEA. If you believe duress is being applied or has been applied to you in connection with an ITEA, speak to your union or go to Business Victoria or contact the Workplace Ombudsman.

It is important to not to sign an ITEA unless you understand it. Read it carefully and obtain advice on it if there is anything you do not understand. Your employer should give you a copy of the ITEA or access to it, with an information statement, at least seven days before it is signed by the parties, (though you may agree, in writing, to less time). If you would like to be represented in negotiations, go the section on Bargaining agents.

If you have parental, family or carer responsibilities, you need to be aware of any terms in awards or other workplace agreements which may assist you in balancing your parental, family or carer responsibilities, because if you sign an ITEA, you could be giving these up. Similarly, if you feel able, you may wish to ask an employer to insert terms into an ITEA to assist you to meet your parental, family or carer responsibilities.

In addition to passing the No Disadvantage Test, an ITEA must not contain provisions which discriminate on grounds such as sex, marital status, family responsibilities or pregnancy, as well as race, colour, sexual preference, age, physical or mental disability, religion, political opinion, national extraction or social origin.

For more information on ITEAs, speak to your union, vist the Workplace Authority or call the Workplace Infoline on 1300 363 264.

Collective Agreements

Your employment may be covered by a collective employment agreement. To find out if you are (or will be) covered by a collective agreement, speak to your union, go to the Workplace Authority or call the Workplace Infoline on 1300 363 264.

After you commence work, you may be asked to participate in the making of a new collective agreement. All collective agreements must pass the No Disadvantage Test. It is important not to agree to a collective agreement unless you understand it. Your employer should give you a copy of the proposed collective agreement or access to it, with an information statement, at least seven days before approval is sought (though employees may agree in writing to less time). A collective agreement has to be approved by a majority of employees who will be covered by it.

It is unlawful for anyone to coerce you (place you under unlawful pressure) to agree, or not to agree, to make, approve, lodge, vary or terminate a collective agreement.

In addition to passing the No Disadvantage Test, a collective agreement must not contain provisions which discriminate on grounds such as sex, marital status, family responsibilities or pregnancy, as well as race, colour, sexual preference, age, physical or mental disability, religion, political opinion, national extraction or social origin.

If you have parental, family or carer responsibilities, and a collective agreement is being negotiated in your workplace, you may want to suggest that it include provisions which will help you and others with similar responsibilities to balance their parental, family or carer responsibilities.

Bargaining Agents

If you prefer not to conduct negotiations for an ITEA or a collective agreement on your own, you may appoint a bargaining agent, such as a union, friend or relative to negotiate on your behalf. It is unlawful to coerce you to appoint, not to appoint or withdraw a request for a bargaining agent. For more information, speak to your union, go to Workplace Authority or call the Workplace Infoline on 1300 363 264.

What's the No Disadvantage Test?

Every workplace agreement (both ITEAs and collective agreements) must pass a special test known as the 'No Disadvantage Test', administered by the Workplace Authority Director. The No Disadvantage Test is designed to make sure that the workplace agreement does not result, on balance, in a reduction in overall terms and conditions of employment. In order to do this the Workplace Authority Director looks at various industrial instruments (if any), such as awards and agreements, to see how the agreement compares with them.

If the proposed ITEA or collective agreement does not pass the No Disadvantage Test, there are various ways in which it can be amended to improve it, so that it will pass the test. In some cases, it is possible for an agreement to start operating, even though the Workplace Authority Director has not yet decided if it passes the No Disadvantage Test.

An employer must not dismiss or threaten to dismiss an employee because the agreement does not pass the No Disadvantage Test. If the agreement eventually fails the No Disadvantage Test, and it is a type of agreement that has already started operating, it may be possible to obtain compensation for any loss which you have suffered as a result. For more information, speak to your union, go to Business Victoria, Workplace Authority or call the Workplace Infoline on 1300 363 264.