When does enterprise bargaining officially start?

Bargaining formally starts at notification time. That may arise when the employer agrees to bargain or initiates bargaining; when the employer receives a qualifying request to bargain for an agreement replacing an existing one; or when a majority support determination, scope order, single interest employer authorisation or supported bargaining authorisation comes into operation. The substance of communications matters, so notification time should be identified and recorded at the time rather than assumed.

How long does an employer have to issue the NERR?

For a single-enterprise agreement the Notice of Employee Representational Rights must be given as soon as practicable, and no later than 14 days after notification time, to each employee who will be covered by the agreement and is employed at that time. It must be in the prescribed form, and altering its required content risks invalidating the notice.

Do bargaining representatives have to make concessions?

No. The good-faith bargaining requirements in s 228 of the Fair Work Act concern conduct — attending and participating, disclosing relevant non-confidential information in a timely way, responding to proposals, genuinely considering them and giving reasons, and recognising other bargaining representatives. They do not require a party to make concessions or to reach agreement.

When can employees vote on a proposed agreement?

Where the NERR is required, employees cannot be requested to approve the agreement until at least 21 days after the day the last notice was given. For notification times on or after 6 June 2023, the Statement of Principles addresses reasonable access to the agreement and incorporated material and reasonable notice of voting arrangements. Providing these at least seven full calendar days before voting starts satisfies the relevant reasonable-opportunity principles.

What majority is required for the agreement to be made?

A single-enterprise agreement is made when a majority of the employees who cast a valid vote approve it. Unanimity is not required, and neither is a majority of everyone who will be covered — but the voting cohort itself must be correct, which is why coverage and employment status need to be settled before the ballot.

How does the better off overall test work?

The Commission applies the BOOT as a global comparison: each award-covered employee and each reasonably foreseeable employee must be better off overall under the agreement than under the relevant modern award, having regard to patterns or kinds of work that are reasonably foreseeable. It is not a clause-by-clause test, and more favourable terms can offset less favourable ones.

Can an enterprise agreement displace the National Employment Standards?

No. An enterprise agreement cannot exclude the NES or provide for terms detrimental to an employee compared with the NES; a term that does has no effect to that extent. Agreements can supplement the NES and deal with matters in more detail, but the statutory minimum remains.

Workplace Advisory & Compliance

Preparing for enterprise bargaining: an employer's roadmap

Making a single-enterprise agreement is a statutory process with fixed steps and deadlines. This roadmap follows the pathway from scoping and notification time through to approval and payroll implementation.

By the AWS Editorial Team5 February 2026Updated 3 August 2026

Executive team preparing for enterprise bargaining negotiations

Key points

Enterprise agreements are made under Part 2-4 of the Fair Work Act 2009 and operate alongside the National Employment Standards, which they cannot exclude.
Notification time fixes the clock: for a single-enterprise agreement the Notice of Employee Representational Rights must be given no later than 14 days afterwards, in the prescribed form.
Good-faith bargaining under s 228 requires participation, timely disclosure of relevant information other than confidential or commercially sensitive information and genuine consideration of proposals — but not concessions or agreement.
Where the NERR is required, employees cannot be asked to approve the agreement until at least 21 days after the last notice was given. Plan document access and voting notice against the Statement of Principles on genuine agreement.
The agreement is made when a majority of employees who cast a valid vote approve it — not a majority of all covered employees.
Commission approval turns on genuine agreement, the better off overall test and other statutory requirements, with the application generally filed within 14 days of the agreement being made.

What enterprise bargaining actually involves

An enterprise agreement is a statutory instrument. It is made under Part 2-4 of the Fair Work Act 2009 (Cth), approved by the Fair Work Commission, and it operates together with the National Employment Standards, which it cannot exclude. That framing matters, because bargaining is not simply a negotiation that ends in a signed document. It is a sequence of steps with prescribed notices, waiting periods, voting rules and approval tests, and a failure at an early step is often only discovered when the Commission looks at the approval application months later.

This roadmap principally follows the ordinary single-enterprise agreement pathway — an employer bargaining with its own employees for an agreement covering its enterprise. Agreements involving more than one employer, including supported bargaining, single-interest employer and cooperative workplace agreement arrangements, are governed by additional and different rules about how bargaining commences, who may be represented, what notices are required and how approval is obtained. This article does not attempt an exhaustive taxonomy of those arrangements; if one of them is in issue, take separate current advice on the differences before relying on the steps below.

The Commission maintains detailed public material on making an enterprise agreement, and employers running their first round in some years should read it alongside their own planning. What follows is general information for employers rather than advice on any particular bargaining strategy or agreement.

Start with the proposed coverage and what you want the agreement to do

Almost every serious bargaining problem can be traced back to coverage. Before anything else, settle which employing entities are involved, which groups of employees the agreement is intended to cover, which classifications and locations sit inside and outside that group, and whether an existing agreement applies to any of them (and when it passed its nominal expiry date). Coverage decides who receives the representational rights notice, who votes, whose award comparison drives the better off overall test, and what the Commission is being asked to approve. Change it late and you may have to repeat steps you thought were finished.

Objectives should be written down at the same time and in plain terms: what operational flexibility the business actually needs, what it can afford, what it wants to simplify, and what it is prepared to leave alone. Vague ambitions such as "modernise the agreement" tend to collapse under the first counter-claim.

None of that is possible without an evidence base. Assemble the workforce profile (headcount by classification, employment type, site and shift pattern), a mapping of the modern award or awards that would otherwise apply, the current agreement's terms and any past interpretation disputes, current earnings and entitlement data, labour cost by category, rostering and demand constraints, and — critically — an honest assessment of what your payroll system can and cannot calculate.

The cost work is where most employers underestimate. Take a proposal to lift base rates by three per cent. Penalties, overtime, casual loading, shift and higher-duties allowances, leave loading, redundancy scales and superannuation may all move with that rate, and some allowances are set as a percentage of a standard rate that also moves. A modest headline figure can land well above three per cent once flow-ons are modelled across the real roster, and higher again if the increase compounds each year. Model the full nominal term using actual rostered hours, not an average employee.

Set up governance — without letting governance replace the law

Bargaining runs better with a defined internal structure: a bargaining team with a nominated spokesperson, subject-matter support from payroll, finance, operations and legal, clear authority limits for what the team can offer without going back for approval, a costing owner, a records owner, and an escalation path for matters that exceed the mandate. Confidentiality expectations should be settled early, including what may be shared with the wider management group.

It is worth being precise about the difference between two things that are easily confused. Your internal mandate is a business decision about what the employer is prepared to agree to. The statutory duties of a bargaining representative are separate obligations owed under the Act and enforceable by the Commission. Having an approvals process does not answer a good-faith complaint, and no internal governance document can override a statutory requirement.

Managers need particular attention, because they will be asked questions long before anything is settled. Give them a short written brief covering what has been proposed, what has not been decided and what they should refer on, and remind them not to promise outcomes, discourage employees from appointing a bargaining representative, or say anything misleading about the process or the effect of proposed terms. An off-hand assurance from a supervisor can become an issue in the approval application.

Work out when bargaining starts and calculate notification time

Notification time is the trigger for the notice obligations, and it is a specific concept rather than a general sense that talks have begun. On the Commission's current guidance, notification time for a proposed agreement may arise when: the employer agrees to bargain, or initiates bargaining, for the agreement; the employer receives a request to bargain for a proposed agreement that would replace an existing agreement, where the statutory requirements for such a request are met (not every employee request to bargain will satisfy them); a majority support determination comes into operation in relation to the agreement; a scope order comes into operation; a single interest employer authorisation comes into operation; or a supported bargaining authorisation comes into operation.

Two consequences follow. The 14-day period for giving the representational rights notice runs from notification time, so the date should be recorded deliberately rather than reconstructed later. And because the earliest possible voting date is tied to when the last notice was given, notification time effectively fixes the front end of the whole timetable. Drifting from "exploratory discussions" into bargaining without deciding when the shift occurred creates an avoidable argument about whether notices were late.

Bargaining representatives and the representational rights notice

Each employee who will be covered is entitled to be represented. If an employee is a member of a union entitled to represent their industrial interests for the work to be performed under the agreement, that union is the employee's default bargaining representative unless the employee appoints someone else or the union's status is revoked in accordance with the Act. Any employee may appoint a representative in writing, including themselves. The employer is also a bargaining representative and may appoint one — an external adviser, for example — in writing.

For a single-enterprise agreement, the employer must take all reasonable steps to give the Notice of Employee Representational Rights to each employee who will be covered by the agreement and is employed at the notification time. It must be given as soon as practicable and no later than 14 days after notification time. This obligation attaches to single-enterprise agreements; do not assume the same rule applies in identical terms across every multi-enterprise stream.

The notice content is prescribed by regulation. Use the prescribed form and resist the temptation to improve it: editing wording, adding commentary or bundling it with other campaign material has caused notices to be found defective, and a defective notice can undo the round. Keep records of when it was given, to whom and by what method, including employees on leave or without email access.

Good-faith bargaining: what section 228 actually requires

The good-faith bargaining requirements in s 228 of the Act apply to each bargaining representative. In summary, a representative must attend and participate in meetings at reasonable times; disclose relevant information (other than confidential or commercially sensitive information) in a timely manner; respond to proposals made by other representatives for the agreement in a timely manner; give genuine consideration to the proposals of others and give reasons for its responses; refrain from capricious or unfair conduct that undermines freedom of association or collective bargaining; and recognise and bargain with the other bargaining representatives. The Commission publishes practical good-faith bargaining guidance for parties.

Two qualifications matter. The requirements do not oblige a representative to make concessions or to reach agreement on any term. And the disclosure requirement is expressly limited — it does not extend to confidential or commercially sensitive information, though refusing to provide any support for a position while continuing to assert it tends to attract scrutiny. Aggregated or de-identified data, or sensitive material provided under an agreed confidentiality arrangement, is often the workable middle path.

A representative who considers the requirements are not being met can seek bargaining orders from the Commission, usually after raising the concern in writing and allowing a reasonable time to respond. That is why records matter concretely: agendas, minutes or file notes, dated correspondence and written reasons for rejecting a claim are what an employer relies on if its conduct is challenged.

Running the negotiations

Settle the mechanics at the first meeting: who attends, how often the parties will meet, how meetings are minuted and whether minutes are agreed, how documents are exchanged, and how claims will be tabled. Ask for a written log of claims from each representative and maintain your own consolidated log showing each claim, the employer's position, the reasoning given, the current cost estimate and the status.

A log of claims is a negotiating document, not the agreement. Terms that seem settled in bullet-point form routinely fall apart when someone tries to draft them: "an extra day of leave for shift workers" raises questions about accrual, pro-rating, part-timers, interaction with the NES, payment on termination and what counts as a shift worker. Draft the actual clause as each item is agreed, and have payroll test it before it is treated as closed.

Keep employee communications factual and consistent with what has actually been agreed, and be careful with material exchanged on a without-prejudice or confidential basis — mark it clearly and brief the bargaining team on what may be repeated outside the room.

It helps to run a single working table that ties each open issue to the evidence needed and the person who must approve movement:

Wage increases — evidence: full flow-on cost model across the nominal term, comparison to award rates, affordability analysis — approval: CFO and steering group.
Classification structure — evidence: current headcount by classification, progression criteria, translation table from the award or existing agreement — approval: operations lead and HR.
Hours and rostering — evidence: demand profiles, current roster patterns, overtime and penalty exposure, payroll system capability — approval: operations lead.
Allowances — evidence: current spend, eligibility rules, award equivalents, whether the amount is fixed or indexed — approval: payroll and finance.
Leave and NES-related terms — evidence: NES comparison, accrual and payment mechanics, system configuration — approval: HR and legal review.
Redundancy and consultation terms — evidence: award and NES baseline, historical usage, cost exposure — approval: HR and steering group.
Dispute settlement and flexibility terms — evidence: current clause performance, statutory requirements for these terms — approval: legal review.

Industrial action and other pressure points

Not all industrial action taken during bargaining is lawful or immune from liability. The Act distinguishes protected industrial action, which attracts statutory immunities, from action that is not protected. Protected employee claim action generally depends on a series of preconditions being met: the action must be organised or engaged in for a proposed enterprise agreement, the employees must be genuinely trying to reach agreement, a protected action ballot order must have been obtained from the Commission, the ballot must have authorised the action with the required support, and the required written notice must be given before the action is taken. There are exclusions and timing rules — including limits related to agreements that have not passed their nominal expiry date — and the detail is genuinely technical, so take current advice before forming a view about any particular action. The Fair Work Ombudsman publishes an overview in its industrial action fact sheet.

Employers should also understand the payment rules that apply when protected action is taken, and the concept of employer response action, which is available only in response to protected industrial action by employees and is subject to its own statutory conditions. Whether to consider it is a question for advice at the time.

Other pressure points arise more often than industrial action: media or social media activity, applications for bargaining or scope orders, disputes about the composition of the bargaining group, and internal pressure to settle because a date has been announced. Plan for continuity, decide who speaks publicly, and avoid announcing target dates you cannot control. Include intractable bargaining in escalation planning: after the statutory minimum bargaining period, a bargaining representative may seek a declaration if the other statutory conditions are met, including prior Commission assistance under s 240. A declaration can lead to a binding workplace determination if bargaining remains unresolved; nine months alone does not trigger arbitration.

Drafting the proposed agreement

Drafting deserves more time than most bargaining timetables allow. The agreement must state its coverage clearly (employer, employees, and any union to be covered), specify a nominal expiry date no more than four years after the day the Commission approves the agreement, and include the terms the Act requires — a dispute settlement term that allows the Commission or another independent person to deal with disputes about the agreement and the NES and that allows representation, a flexibility term permitting individual flexibility arrangements on the required matters, and a consultation term about major workplace change and changes to regular rosters or ordinary hours. Include a workplace delegates' rights term complying with s 205A. Statutory model-term incorporation applies to flexibility and consultation terms in the circumstances specified by the Act; it is not a universal cure for missing mandatory terms. A compliant dispute settlement term is an approval requirement under s 186(6).

Beyond the mandatory terms, later disputes usually come from the everyday ones: wage schedules for each year, classification definitions and progression, allowances and indexation, span of hours, overtime and penalty triggers, breaks, roster change notice, higher duties, part-time and casual arrangements, and redundancy. Write them so a payroll officer and a line manager can apply them without interpretation, and re-check cross-references after each round of edits.

An agreement cannot exclude the National Employment Standards or contain terms detrimental to an employee compared with the NES, and it cannot include unlawful terms. Because mandatory and prohibited content changes with amending legislation, check the requirements against the current Act for this round rather than against your last agreement.

Before the vote, configure and test the terms in payroll and rostering using real scenarios: a night-shift employee, a part-timer working a public holiday, a mid-year classification change, a termination with accrued entitlements. If the system cannot produce the right result, either the drafting or the system has to change — and that is far cheaper to discover before the ballot.

Explanation, the access period and the vote

Three obligations converge here, and each has caught employers out.

For notification times on or after 6 June 2023, the former statutory seven-day access period has been replaced by the genuine-agreement framework (ss 188, 188B). The Statement of Principles addresses a reasonable opportunity to access the agreement and incorporated material — award schedules, policies and rate tables included — and reasonable notice of the time, place and method of voting. Providing these at least seven full calendar days before voting starts satisfies the relevant reasonable-opportunity principles. Check that links work and incorporated documents are available.

The explanation obligation is separate. The employer must take all reasonable steps to ensure the terms and their effect are explained to the relevant employees in an appropriate manner, taking account of their particular circumstances and needs. That means explaining what changes and what it means for different groups, with thought given to employees from non-English-speaking backgrounds, young employees, shift workers, those on leave and those without email. Record what was explained, by whom, when, in what format, and what was done for anyone who could not attend.

Timing is fixed at the front as well: employees cannot be requested to approve the agreement until at least 21 days after the day the last representational rights notice was given. Document access and voting notice must also satisfy the genuine-agreement framework; they do not replace the 21-day requirement.

Then the vote. Only employees who will be covered and who are employed at the time should be in the voting cohort. A single-enterprise agreement is made when a majority of the employees who cast a valid vote approve it — not unanimity, and not a majority of everyone who will be covered. Use a method that produces a reliable record of eligibility, participation and result.

Genuine agreement, the BOOT and Commission approval

The Commission must be satisfied that the employees have genuinely agreed to the agreement. It applies a Statement of Principles on genuine agreement, which addresses matters such as informed and genuine choice, whether employees had a sufficient interest in the terms and were sufficiently representative, the adequacy of the explanation given, and the integrity of the voting process. Reading the Statement of Principles while planning the access period — rather than while drafting the approval application — is the single most useful thing an employer can do to avoid late problems.

The better off overall test is a global assessment. Each award-covered employee, and each reasonably foreseeable employee who would be covered, must be better off overall under the agreement than under the relevant modern award, and the Commission has regard to patterns or kinds of work that are reasonably foreseeable. It is not a clause-by-clause comparison, so a less favourable term can be offset by more favourable ones; equally, it is not a guarantee that every employee will be ahead in every conceivable roster. Prepare the comparison properly: identify the reference award and classifications, model representative and reasonably foreseeable rosters, and be ready to explain the offsets.

Where the Commission has a concern, it may accept written undertakings from the employer to address it, subject to consultation with bargaining representatives and to the requirement that undertakings not cause financial detriment or substantial changes. Undertakings are a repair mechanism: they bind the employer, they can be operationally awkward, and they are best avoided by testing the BOOT before the vote.

The application for approval is generally required within 14 days after the agreement is made, though the Act permits the Commission to accept a later application in defined circumstances. Use the current Commission forms and statutory declarations and check them for this round, because their content and supporting material change over time. Approval also depends on matters beyond the BOOT and genuine agreement, including the mandatory terms, the absence of unlawful terms, the nominal expiry date, the group covered being fairly chosen, and compliance with applicable notice requirements and the genuine-agreement framework.

Implementation after approval

An approved agreement operates from seven days after approval or a later date specified in the agreement, and the work does not stop there. Tell employees and managers what has been approved, when it starts and what changes for them in concrete terms. Update payroll rates and rules, rostering configuration, position descriptions, contract templates, policies referred to in the agreement, and any onboarding material that quotes terms.

Train the managers who will apply the agreement day to day, particularly on consultation, roster change, dispute resolution and any new flexibility mechanisms, and publish a plain-language summary alongside the agreement.

Then audit. Check the first two or three pay cycles line by line across classifications, shift patterns and employment types. Keep a register of commitments made during bargaining that sit outside the agreement text, with owners and dates, and diarise the nominal expiry date well in advance. Approval is the start of a compliance obligation, not the end of one, and the agreement continues to operate alongside the NES throughout.

Avoidable failures we see most often

Most bargaining rounds that go wrong do so for a small number of recurring reasons:

Coverage or the voting cohort is defined incorrectly, or changes late in the process.
The representational rights notice is given late, altered from the prescribed form, or not given to every eligible employee.
The explanation of terms is generic and does not address the circumstances of particular employee groups.
Drafting changes are made in the final days before the vote without a clear record of what changed and why.
BOOT modelling is based on averages rather than real and reasonably foreseeable rosters.
Commitments are made at the table that exceed the negotiator's authority.
Payroll cannot implement the terms as drafted, and is asked only after the vote.
Managers give inconsistent or overstated messages to their teams.
Records of meetings, notices, access, explanation and the vote are incomplete when the approval declarations are prepared.

Where this needs specialist input

This roadmap is general information for employers, not legal advice about a particular agreement or bargaining strategy. Several points in the pathway reward specialist attention: whether a multi-enterprise stream applies to you, any question about protected industrial action, contested coverage or scope, the treatment of confidential information in disclosure, and BOOT modelling in workforces with complex rosters. Our workplace advisory and compliance team works with employers on bargaining preparation, evidence and cost modelling, drafting review and approval readiness alongside their own legal advisers.

Staged employer checklist

Before notification time — settle coverage and objectives; map the applicable awards and any existing agreement; build the workforce, cost and payroll-capability evidence base; agree the internal mandate, authority limits and approvals; brief managers; decide and record when bargaining will start.
After bargaining starts — record notification time; issue the prescribed representational rights notice within 14 days and keep distribution records; identify and recognise bargaining representatives; agree meeting protocols; maintain the claims log, cost models and written reasons for responses.
Before the access period and vote — finalise drafting and test it in payroll and rostering; complete BOOT modelling against real and reasonably foreseeable rosters; confirm the 21-day period since the last notice has run; provide reasonable access to the agreement and all incorporated material and reasonable notice of the time, place and method of voting, using the Statement of Principles' seven-full-calendar-day safe harbour; deliver and document a tailored explanation of the terms and their effect.
Before the approval application — confirm the voting cohort and result; compile records of notices, access, explanation and the ballot; prepare the current Commission forms and declarations with the material they require; identify any BOOT concerns and consider whether undertakings may be needed.
After approval — communicate commencement and changes; update payroll, rostering, policies, templates and training; audit the first pay cycles; maintain the register of bargaining commitments; diarise the nominal expiry date and start planning the next round early.

Frequently asked questions

When does enterprise bargaining officially start?: Bargaining formally starts at notification time. That may arise when the employer agrees to bargain or initiates bargaining; when the employer receives a qualifying request to bargain for an agreement replacing an existing one; or when a majority support determination, scope order, single interest employer authorisation or supported bargaining authorisation comes into operation. The substance of communications matters, so notification time should be identified and recorded at the time rather than assumed.
How long does an employer have to issue the NERR?: For a single-enterprise agreement the Notice of Employee Representational Rights must be given as soon as practicable, and no later than 14 days after notification time, to each employee who will be covered by the agreement and is employed at that time. It must be in the prescribed form, and altering its required content risks invalidating the notice.
Do bargaining representatives have to make concessions?: No. The good-faith bargaining requirements in s 228 of the Fair Work Act concern conduct — attending and participating, disclosing relevant non-confidential information in a timely way, responding to proposals, genuinely considering them and giving reasons, and recognising other bargaining representatives. They do not require a party to make concessions or to reach agreement.
When can employees vote on a proposed agreement?: Where the NERR is required, employees cannot be requested to approve the agreement until at least 21 days after the day the last notice was given. For notification times on or after 6 June 2023, the Statement of Principles addresses reasonable access to the agreement and incorporated material and reasonable notice of voting arrangements. Providing these at least seven full calendar days before voting starts satisfies the relevant reasonable-opportunity principles.
What majority is required for the agreement to be made?: A single-enterprise agreement is made when a majority of the employees who cast a valid vote approve it. Unanimity is not required, and neither is a majority of everyone who will be covered — but the voting cohort itself must be correct, which is why coverage and employment status need to be settled before the ballot.
How does the better off overall test work?: The Commission applies the BOOT as a global comparison: each award-covered employee and each reasonably foreseeable employee must be better off overall under the agreement than under the relevant modern award, having regard to patterns or kinds of work that are reasonably foreseeable. It is not a clause-by-clause test, and more favourable terms can offset less favourable ones.
How quickly must approval be sought after the vote?: An application for approval is generally required within 14 days after the agreement is made, although the Act allows the Commission to accept a later application in defined circumstances. Use the current Commission forms and declarations rather than templates from an earlier round, because their content changes.
Can an enterprise agreement displace the National Employment Standards?: No. An enterprise agreement cannot exclude the NES or provide for terms detrimental to an employee compared with the NES; a term that does has no effect to that extent. Agreements can supplement the NES and deal with matters in more detail, but the statutory minimum remains.

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