Permitted matters are specific topics that can legally be included in an enterprise agreement. These matters can cover aspects like the relationship between employers and employees, wage deductions, and terms about how the agreement functions.
Permitted matters in an enterprise agreement are the range of topics and issues that are legally allowed to be discussed and included in these agreements. These might include the terms of the employment relationship, policies on wage deductions, and procedures for how the agreement is implemented and operates. The scope of these matters is to ensure that the agreements are comprehensive, fair, and comply with legal standards.
Under section 172 of the Fair Work Act, an enterprise agreement can deal with matters pertaining to the relationship between the employer and employees, or between the employer and the union, deductions from wages for any purpose an employee authorises, and how the agreement will operate. It must include a flexibility term, a consultation term and a dispute settlement term, and it cannot contain unlawful terms. For example, terms about wages, rosters, leave and redundancy are permitted matters, but a term requiring the business to fund a political campaign is not.
Read our guide to enterprise agreements and see unlawful terms.
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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