According to the Fair Work Act, a more creative approach to negotiations is now needed, but with a proactive and careful approach, it is still possible that company agreements will be of great use. If an employer takes control of the bargaining process, a company agreement can bring additional benefits to employees while promoting flexibility, simplicity and innovation. It is possible that a company agreement can also ensure compliance, while increasing productivity and reducing administrative costs. The Fair Work Commission can also help employers and workers negotiate with their New Approaches programme. Read more about The New Approaches on the Fair Work Commission website. This, however, has led many employers to question whether there are still benefits for the business repair process. If employers meet national employment standards and any agreement allows workers to be better off, does this mean that an agreement is needed to make the employer less favourable? Where is the bargain? What is the incentive for employers to participate? As organizations diversify and workforces are increasingly likely to move across many types of jobs and industries, company agreements can be very useful for employers who are the subject of a number of distinctions. They allow a company to define its own classification structures, instead of limiting the movement of staff based on the coverage of distinctions or the complex system of classifications beyond several distinctions. This facilitates compliance. The vast majority of workplace disputes over underpayment are due to the general nature of modern premium classifications. For employers and workers, it can be difficult to accurately correlate the very general rankings of distinctions with the very specific roles of the company. A well-developed agreement removes this obstacle.
The effects of this simplification can be a reduction in the time and costs of the pay slip and a reduction in the risk of compliance. Given that staff are indeed involved in the negotiation and approval process, it is likely that the agreements will identify issues that can be addressed and argue for the long-term commitment of staff to the organization. . . .