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Enterprise bargaining

Enterprise bargaining is a negotiation process typically involving employers, employees and their representatives. The aim of this process is to establish an enterprise agreement.

Enterprise bargaining is a negotiation dance where the employer and employees (often through representatives like unions) discuss and agree on the terms of employment. This process is all about reaching a mutual agreement that outlines pay, work hours, leave policies, and other job conditions in an enterprise agreement. It's a collaborative effort to tailor the working terms to suit the specific needs of both the business and its employees.

Good faith bargaining rules

During enterprise bargaining, each bargaining representative must meet the good faith bargaining requirements in the Fair Work Act: attend and take part in meetings at reasonable times, disclose relevant information in a timely way, respond to proposals, give genuine consideration to them and avoid capricious or unfair conduct. Employees can choose a bargaining representative, such as a union. For example, if a majority of employees want to bargain and the employer refuses, the Fair Work Commission can make a majority support determination.

Read our guide to enterprise agreements, or get employee relations support before you start bargaining.

General information only

This content is general information about Australian employment law, current at the date it was last reviewed. It does not take your circumstances into account and is not legal advice. For advice about your situation, call Employment Compass on 1300 144 002.

Last reviewed: October 2026

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