Enterprise Agreement

Running Head: ENTERPRISE AGREEMENT 1
Enterprise Agreement
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Enterprise Agreement
Enterprise agreements are signed by two parties who are working together. It contains the
terms and conditions on how the partnership will work. These agreements have maturity time
and before it matures, it is unlawful for a party in the partnership to stop honoring the agreement.
However, there are situations where termination of an enterprise agreement before it matures is
allowed. Fair work commission is an independent body in Australia that has the mandate to
receive termination appeals, hear the reasons for termination and give a verdict whether the
agreement is terminated or not (Agreement, 2013). There are many industrial relation factors
that may make employers and their employees wish to apply for a termination of their enterprise
agreement by the fair work commission.
Unfair dismissal is key issue that may make an employee apply to the fair work commission.
This is because it is unlawful to terminate the employment contract without a good reason to do
so. This is also based on how the dismissing was done. This should be done based to the
stipulated guidelines in the employee's handbook. Typical procedures like verbal warnings,
various documented attempt to rectify the issue, a chance for the victim to defend himself or
herself, and documented final warnings issued before the dismissal of the employee. If this
channel is not followed, Employees apply for this in order to either get there job back or be
compensated by the enterprise (DRAKE, 2013). Cases of the same kind have been submitted to
the fair work commission and the commission has always ensured that the agreement is honored
Violation of general protections is also another factor that can lead to termination of an
enterprise agreement. When some of the things that a member of the agreement is protected from
by law are violated by the other part, an application is made to the fair work commission. This is

ENTERPRISE AGREEMENT 3
done in order to terminate the current agreement and review it in order to have a new agreement
that will be friendly to both parties (Hedwig, Malkowski, & Neumann, 2012 January).
Bullying is a major challenge to employees. The employer is supposed to ensure that an
employee is protected from such and he/she must also ensure that the working environment is
friendly. Thus, if an employee is bullied he/she applies for a termination of the contract.
Employees should talk with the employer and try to come up with a strategy to stop this vice. If
the employer is still unable to protect the employee against such, then he/she can go ahead with
the termination process (O'Neill, 2012).
Misconduct by an employee can refer to a wide range of misbehavior such as breaching of the
company policy and other inappropriate behaviors. Serious misconduct entails fraud, assault,
theft, bullying of junior stuff other unlawful activities and any deliberate or willful conduct that
is fundamentally inconsistent with continuation of the enterprise agreement, and any other
conduct that can lead to a staid and imminent problem to safety and health or the profitability,
viability and reputation of the employer’s business. Company’s policy ought to be plainly set out
so that the employer has grounds to support his/ her actions. It should clearly show the do’s and
don’ts in the company and indicate the magnitude of each violation (Police, A.2012). When
there is enough evidence of misconduct application for the termination of the contract is sent to
the fair work commission. This is because the employer should be protected from such.
Incapacity can similarly make an employer wish to terminate an agreement he/she had made
with an employee. A termination appeal may be sent to the fair work commission when it is
found out that the employee lied about his/ her capabilities when the agreement was being made.