Enterprise agreements must correspond to the “best overall test” (BOOT) compared to the corresponding premium. In reality, this means that the worker must turn better financially if he is at the end of the contract than he would have been under the premium. Wage setting by the (then) Commonwealth Court of Conciliation and Arbitration was accepted as beginning with the famous Harvester decision in 1907 (although the first President of the Court, Justice O`Connor, had already made statements confirming that the rates of pay for certain agreements were “fair and reasonable”). The harvester`s decision recommended a base salary (7 shillings per day) plus a small leeway for qualifications (for male workers), but the shutdown did not take the form of an industrial premium. Shortly thereafter, Commonwealth Awards were presented for the resolution of intergovernmental disputes. The number of federal prices gradually increased after the harvester`s decision, first in the marine industry, but they were rejected by employers and states in other sectors. This view of the relationship between employment contracts and subsidies was rejected shortly thereafter at Josephson/Walker (1914) 18 CLR 691. It was there that the High Court s.49 (3) of the NSW Industrial Disputes Act 1908, which provided for the claim of wages earned in the context of an arbitration award, considered. The arbitration and arbitration system excluded the jurisdiction of the common law and replaced it with a legal code for the awarding and enforcement of arbitration awards.
The High Court departed from the earlier notion of inclusion of bonuses in employment contracts and recognized that bonuses were legal instruments that were and worked independently of employment contracts. On this occasion, Justice Isaacs held: The majority of workers have an employment contract rather than an enterprise agreement. There is no obligation to have an enterprise agreement. The development of an employment contract to comply with existing legislation and to optimize the position of the employer or worker has many complexities and intricacies. It is worth having employment contracts established or audited regularly by an employment expert to ensure compliance with existing legislation, to highlight problems and to develop additional provisions that might be desirable. Fair Labour Laws, which came into force in 2008, created individual transitional employment contracts or ITEAs (special agreements that could only be concluded until the end of 2009) and amended collective agreements in July 2009 in enterprise agreements. In labour law, the modern allocation system provides for minimum standards for sectoral or professional employment, in addition to national employment standards (NES). Nes provides a safety net of 10 minimum conditions for all workers in the national industrial relations system. However, few specific conditions apply to casual workers for NES. Federal employment contract laws have changed several times in recent years.
Prior to the WorkChoices Act in March 2006, employment contracts were referred to as certified employment contracts (agreements between an employer and a group of workers) and Australian employment contracts or AWAs (agreements between an employer and a single worker). Enterprise agreements must have an expiry date of no more than four years from the date the Fair Work Commission approves the agreement.