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Single Enterprise Agreement Example

Single Enterprise Agreement Example

Single Enterprise Agreement Example: Understanding the Importance of Workplace Agreements

In today`s fast-paced and ever-changing business environment, it`s crucial for companies to establish a strong and cohesive relationship with their workforce. One effective way to achieve this is through a single enterprise agreement (SEA), which is a written agreement between an employer and their employees that outlines the terms and conditions of employment. This article will delve into the concept of SEA and provide an example of how it can benefit both employers and employees.

What is a Single Enterprise Agreement?

A single enterprise agreement is a legally binding agreement between an employer and their employees that outlines their rights and responsibilities. SEA covers a range of employment conditions, such as wages, working hours, overtime pay, leave entitlements, and dispute settlement procedures. A SEA can be entered into by a single employer or a group of employers who are considered to be a single business entity.

A SEA can be established through a negotiation process between the employer and their employees or through the Fair Work Commission (FWC). The FWC must approve the agreement, ensuring that it meets the requirements under the Fair Work Act 2009.

SEA Example

To better understand the benefits of SEA, let`s take a closer look at an example. ABC Company is a manufacturing firm that employs over 300 staff. To ensure that its workforce of diverse backgrounds is catered to, the company negotiates a single enterprise agreement with its employees’ representative. The agreement outlines a range of employment conditions, including the following:

• Wages: ABC Company will pay its employees according to a set wage scale that is in line with industry standards. The wage scale will be reviewed annually.

• Working hours: The standard working hours for all employees will be 38 hours per week. Overtime will be payable at a rate of 1.5 times the base rate.

• Leave entitlements: All employees are entitled to four weeks` annual leave, ten days` sick leave, and long service leave as outlined in the company`s policy.

• Dispute resolution: Any disputes between ABC Company and its employees will be resolved through an internal dispute resolution process.

Benefits of SEA

SEA provides numerous benefits for both employers and employees. For employers, an SEA helps to:

• Improve communication and collaboration between the company and its employees.

• Establish a framework for resolving disputes and resolving conflicts internally, which can save time and money.

• Increase employee satisfaction and reduce employee turnover.

For employees, an SEA enables them to:

• Have a say in their working conditions and negotiate better employment terms.

• Gain greater job security and certainty.

• Enjoy better work/life balance through clear guidelines on working hours and leave entitlements.


In conclusion, SEA is an essential tool for companies to establish a productive and collaborative relationship with their workforce. It provides benefits for both employers and employees by outlining clear employment conditions, improving communication, and reducing disputes and conflicts. By establishing a single enterprise agreement, companies can ensure a harmonious and productive workplace culture that promotes innovation and success.

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