Which type of contract would apply to all employees in a specific business, such as a chain's workforce?

Which type of contract would apply to all employees in a specific business, such as a chain's workforce?

• A. Enterprise Agreement
• B. Modern Award
• C. Common Law Contract
• D. Verbal Agreement

Answer: (A)

An enterprise agreement is the contract that fits a whole business. In Australia, this is a binding collective agreement negotiated at the workplace level and covering all employees in that enterprise (the chain and its locations). Once approved, it applies to every worker covered by it, setting terms like pay, hours, and leave tailored to that specific business. It can provide terms beyond the minimums in an industry-wide award, as long as the agreement meets the National Employment Standards. In contrast, a modern award is an industry-wide set of minimum terms that applies across many employers in that industry, not specifically to one business. A common law contract is an individual contract between a single employee and employer, not the whole workforce. A verbal agreement is informal and does not reliably bind the entire workforce.

An enterprise agreement is the contract that fits a whole business. In Australia, this is a binding collective agreement negotiated at the workplace level and covering all employees in that enterprise (the chain and its locations). Once approved, it applies to every worker covered by it, setting terms like pay, hours, and leave tailored to that specific business. It can provide terms beyond the minimums in an industry-wide award, as long as the agreement meets the National Employment Standards.

In contrast, a modern award is an industry-wide set of minimum terms that applies across many employers in that industry, not specifically to one business. A common law contract is an individual contract between a single employee and employer, not the whole workforce. A verbal agreement is informal and does not reliably bind the entire workforce.