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Milestone for Individual Agreements

An important milestone in the transition to Fair Work Australia occurs on 1 January 2010 when the new system for making individual employee agreements commences.

Under the Fair Work legislation, employers and individual employees have been able to continue to make individual employment agreements (ITEAs) which could override awards or collective agreements.

From 1 January 2010 individual agreements overriding awards or collective agreements can only be made by using the individual flexibility clauses included in all new awards and new collective agreements.

Current AWAs and ITEAs will continue to operate indefinitely. They can be terminated by either the employer or employee on 90 days notice but they cannot be automatically overridden by a new collective agreement.

Employees covered by an ITEA or AWA cannot enter into a collective bargaining agreement.

You should give careful consideration to how and when an individual should be terminated or how any new collective agreement could interact with individual agreements and, therefore, how this could affect your rights and obligations.

Contact one of our experienced employment lawyers to obtain advice on the impact which this important transitional period may have on you as an employee or an employer.

Posted on 4th December 2009