As a professional, I understand that the world of enterprise agreements can be complex and often confusing. With so many moving parts and legal considerations to keep in mind, it can be challenging to know when exactly an enterprise agreement is made.

An enterprise agreement is a legally binding agreement between an employer and its employees, which outlines the terms and conditions of their employment. These agreements can cover a wide range of issues, from pay and working conditions to leave entitlements and dispute resolution processes.

So, when exactly is an enterprise agreement made? The answer to this question depends on a few key factors.

Firstly, it is important to understand that enterprise agreements are negotiated between employers and employees, usually with the assistance of a bargaining representative or union. This negotiation process can take time, with both parties working to reach a mutually agreeable outcome.

Once an agreement has been reached, it must be put to a vote by the affected employees. This vote must be conducted in accordance with the requirements set out in the Fair Work Act 2009, including providing access to the proposed agreement and conducting a ballot that meets certain standards.

If the majority of employees who vote approve the agreement, it is then submitted to the Fair Work Commission for approval. The Commission must be satisfied that the agreement meets the legal requirements set out in the Fair Work Act and does not disadvantage employees in any way.

Assuming the agreement is approved by the Fair Work Commission, it then comes into effect seven days after approval. This is the point at which the enterprise agreement is officially made and becomes legally binding on both the employer and employees.

It is worth noting that enterprise agreements have a nominal expiry date, which means that they will remain in force until that date, unless a new agreement is negotiated and approved before then.

In summary, an enterprise agreement is made through a negotiation process between employers and employees, followed by a vote and approval by the Fair Work Commission. Once approved, the agreement takes effect seven days later and becomes legally binding on both parties.