Introduction
As the employer, you must explain the terms of the agreement, and their effect, to employees. This is a legal requirement. When you apply for approval, you need to show proof that you did this.
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The laws covering agreement making changed on 6 June 2023. Use this information if your notification time is before 6 June 2023. If notification time for your application is on or after 6 June 2023, see Changes to making Agreements for a summary of the new laws.
What you must do
To show you have met the rules in the Fair Work Act, your application should include proof that you:
- explained the terms of the agreement, and their effect, to the relevant employees
- gave the explanation in a way that considered the needs of the relevant employees
- compared the terms between the agreement and the relevant modern award.
You must keep records of how and when you did this so you can fill out Form F17.
For examples of what you need to think about, see Plan to communicate your agreement.
See section 180 of the Fair Work Act 2009.
What we look for in your application
We want to be sure you took all reasonable steps to explain the terms of the agreement and their effect to employees.
To do this, we review:
- what was in the material you gave employees
- how you gave the explanation to employees
- how you thought about the needs of all employees in this process.
We must consider whether the employees understood the agreement and whether it was a genuine agreement.
The impact if you did not explain the agreement
We may not approve the agreement if you did not make a reasonable effort to explain it. In this case, you may have to start the bargaining process again.
Next step
After you explain the agreement to employees, hold an access period at least 7 clear days before the vote.