It is important to understand the difference between a common class agreement and an employment contract. While there is a common law contract when you mandate a worker, whether it is an oral or written contract, the term employment contract, as used in labour law, refers to a formal document containing certain clauses and formally submitted to a public authority. The Fair Work Commission will check company agreements to verify illegal content. The Fair Work Commission cannot approve an enterprise agreement containing illegal content. 2.49 The second loophole in Section 170WG is the ability of employers to block workers to coerce or induce them to sign an AWA under certain conditions. Employers can also block workers to enter into a certified agreement or to respond to union measures taken to pursue an agreement. The ACTU filing argued that the lockout was essentially a coercive instrument against employees. There are many examples where lockouts have been used to deny workers the right to negotiate collective agreements, to force workers to accept AWAs, and to reduce billing conditions in collective bargaining. In some cases, they are used as a disproportionate reaction to trade union actions.  The Committee is particularly concerned about the effects of lockouts on productivity, particularly when they result from disputes over the form of an agreement and are extended over a long period of time. Organizations that are negotiators (employers, employers` organizations and trade unions) for a proposed enterprise agreement must disclose certain financial benefits that they (or certain related parties) may obtain (or could obtain) because of the length of the proposed agreement. Enterprise agreements must have an expiry date of no more than four years from the date the Fair Work Commission approves the agreement. The terms of an enterprise agreement, transitional instruments (assignment or convention) and modern rewards cannot exclude the NES, and those who do so will have no effect.
An agreement is reached with a single company between a single employer (or more than two or more employers with a single interest) and workers who are employed at the time of the agreement and who are covered by the agreement. Employers with a common interest are employers who are in a joint venture or joint venture or who are related companies. They may also be employers approved by the Commission for fair work as an employer with a single interest, which can be either franchised or by other employers, if the Minister of Labour has made a statement. If the parties fail to agree on the terms of a proposed enterprise agreement, a representative of the negotiations may ask the Commission for assistance in fair work. 2.42 As has already been mentioned, the EAC Act is based on the principle that collective agreements and collective agreements must be “treated on the same model” without both being privileged. However, when the law facilitated employers` access to the introduction of AEA, it created the conditions for unscrupulous employers who should harass, frustrate and circumvent their workers` preference for collective representation. The Committee is concerned about two shortcomings in the worker protection legislation provided for by Section 170WG of the Trade in Services Act of the Committee on Economic Affairs and Workers` Protection. The first loophole is “Take it or leave it” AWAs, where employers can legally make signing an AWA a condition of employment upon entering a job: sign the AWA, accept that salary and a number of conditions and sign up for collective bargaining, or you will not get the job. 2.7 The Melbourne Centre for Employment and Labour Relations Law, which was presented to the government in 2004 for review of the CEC Act, argued that the law does not regulate how workers could choose the employment agreement they deem appropriate: an employment contract differs in several important ways from a common law employment contract.