Agreements explained

On this page ...

Certified agreements

A certified agreement is a written collective employment agreement which sets out the wages and working arrangements for a particular group of employees. The group of employees may be the whole of a workforce or a specific group that is somehow separate and distinct. Certified agreements may cover a single workplace or be made to cover a group of associated employers.

A certified agreement can ‘stand alone’ by setting out all conditions and provisions of employment thereby effectively replacing the relevant award, or it can operate in conjunction with the relevant award. For example, a certified agreement may only provide for a wage increase or change the hours, overtime and shift work conditions and the remainder of the relevant award would continue to apply to the work.

Where there is any inconsistency between the provisions stated in a certified agreement and those contained with an award, an industrial agreement or apprenticeship/traineeship order, the certified agreement provision prevails. Certified agreements prevail in a similar manner over a Queensland workplace agreement – unless the certified agreement provides for the Queensland workplace agreement to override its terms.

Different types of certified agreements

As outlined above, a certified agreement can cover the whole of the workforce at a particular workplace or be made to apply only to a specified group of employees. Certified agreements can be negotiated either directly with employees or with the unions entitled to represent employees to be covered by the agreement.

Certified agreements may also be made to cover government employees.

In addition to agreements which apply only to a single workplace or business, the Act provides for other types of certified agreements:

‘Multi-employer’ agreements covering two or more employers that are related corporations; are engaged in a joint venture or common enterprise or are undertaking similar work. Multi-employer agreements can not be made for new businesses. An agreement of this type may be attractive to a group of employers on a common franchise arrangement.
‘Project’ agreements (e.g. covering construction work). A project agreement can be made before the commencement of the project and may cover either a single employer or a group of employers involved in the project. Project agreements operate for the life of the project and override any other agreement that would otherwise apply. Such agreements have the advantage of ensuring that there is no need to renegotiate conditions mid-term and also establish a common set of conditions for all employers and their employees involved in the project.
‘New business’ agreements cover a new business being established at or relocated to a new workplace. New business agreements may only be made to cover a single employer and may not be made to cover the actual construction of a new workplace. New business agreements have the advantage of allowing a business to plan ahead with some certainty by negotiating an agreement before any employees commence work. As there are no employees employed at that time, a new business agreement must be made with union/s entitled to represent the types of employees to be employed.

How does a certified agreement become legally binding?

To be legally binding, certified agreements must be approved by the Commission.

The Commission considers the application to approve the certified agreement, supporting documentation and any submissions by parties at a formal hearing (i.e. the employer and employee or their respective representatives must attend).

Fact Sheet - Awards and Agreements - Appendices 1 and 2 set out important information in relation to filing documentation and the procedures and practices of the Commission in dealing with applications to approve certified agreements.

All relevant unions are entitled to make submissions relating to an application to approve a certified agreement. This includes:

any union that is bound by an award or industrial agreement that binds the employer, or
where there is no award or agreement that binds the employer – any union entitled to represent the interests of the employees to be covered by the agreement.

As soon as practicable after the application is made the Commission notifies all relevant unions that they are entitled to be heard in relation to the proposed agreement.

Once approved, certified agreements are binding on all the parties, i.e. the employer, existing employees, employees hired after the agreement is approved and the unions with which the agreement has been made.

Where a business which is covered by a certified agreement is sold, and employees transfer to the purchaser/new employer, then the new employer is bound by the existing agreement.

To be approved the certified agreement must also satisfy particular legal requirements.

For example, it must:

have been negotiated and/or made in accordance with the requirements of the Act;
have the genuine approval of a ‘valid majority’ of the employees to be covered by the agreement;
pass the no disadvantage test (i.e. a comparison of the entitlements and protections for employees under the certified agreement with those under the relevant award);
include or exclude all required provisions; and
be accompanied by all required information. (See fact sheet – Awards & Agreements)

What can be included in a certified agreement?

The actual content and scope of a certified agreement is up to the negotiating parties to decide. However, it should focus on work arrangements which cater for the needs of both the business and the employees. In this regard, certified agreements need not be limited to traditional industrial relations arrangements.

In developing a certified agreement, the parties are responsible for ensuring the content of the agreement meets all the legal requirements. The Act requires that all certified agreements must include:

a nominal expiry date for the agreement. (A maximum of three years after the date from which the agreement commences to operate. For project agreements, the expiry date may be the date on which the project ends).
a dispute-resolution procedure. Note - A mandatory model dispute resolution procedure is required in a Queensland workplace agreement. See Schedule 2 Industrial Relations Regulations 2000. A similar procedure could serve equally well, with minor amendment, as the dispute resolution procedure required in all certified agreements.

In addition to this, the Act requires that a certified agreement must not include:

discriminatory provisions; or
provisions inconsistent with Act provisions, orders or injunctions relating to equal remuneration for work of equal or comparable value, dismissals or freedom of association.

How must a certified agreement be negotiated?

The Act sets down provisions that emphasise the importance of negotiation and genuine bargaining in good faith in the making of certified agreements.

To assist negotiations during the making of a certified agreement, the Act provides for a 21-day peace obligation period. This period commences from the time the proposer of the agreement gives advice of their intention to begin negotiations to all other parties. Parties cannot take industrial action or ask for the assistance of the Commission in negotiation of the agreement during the peace obligation period.

The Act also requires that parties are to negotiate a certified agreement in good faith. Examples of this include:

agreeing to meet at reasonable times proposed by another party;
attending meetings that the party has agreed to attend;
complying with negotiation procedures agreed to by the parties;
not capriciously adding or withdrawing items for negotiation;
disclosing relevant information as appropriate for the negotiations; and
negotiating with all of the parties.

Queensland workplace agreements

A Queensland workplace agreement is a written individual employment agreement setting out the wages, conditions and working arrangements between an employer and an individual employee.

An employer can negotiate a Queensland workplace agreement with each employee individually, or with a group of employees. If it is negotiated on a group basis, it must be signed individually by each of the employees covered.

An employee has the right to appoint a bargaining agent to represent them in negotiations. A bargaining agent can be any person or even a union.

A Queensland workplace agreement is a stand-alone agreement that completely overrides an award. It replaces the award under which an employee is currently working unless the Queensland workplace agreement specifies otherwise.

A Queensland workplace agreement overrides a certified agreement only if the certified agreement contains specific provisions that allow this to happen. Depending on its wording:

the provisions of a certified agreement that are not changed in a Queensland workplace agreement may still continue to apply; or
the Queensland workplace agreement will completely override the certified agreement (i.e. the Queensland workplace agreement replaces the certified agreement).

A Queensland workplace agreement can only be made with an employee who is 18 years of age or older.

A Queensland workplace agreement may not be made to cover the employment of an employee of a public sector employee (e.g. State government departments or agencies; or local government).

For a Queensland workplace agreement to be legally binding, it must be approved by the Queensland Industrial Relations Commission (QIRC) , though there is usually no need for a public hearing in the approval process.

Queensland workplace agreements are not available to the public.

Industrial agreements

An industrial agreement existed under the Industrial Relations Act 1990. The agreement was between industrial organisations of employees (unions) and industrial organisations or associations of employers, groups of employers, or individual employers. An industrial agreement in force immediately before the commencement of the Industrial Relations Act 1999 (PDF, 1.9MB) continues to have effect until a party retires from the agreement or it is terminated, but the term of the agreement cannot be extended.

For legislative reasons, Industrial Agreements have not been able to be amended since 1997. This has resulted in many Industrial Agreements being declared obsolete and replaced by either a new Award, incorporated into an existing Award or included in a Certified Agreement.

Last updated: 10 June 2008

Rights & obligations

Agreements explained

On this page ...