Negotiate an Enterprise Agreement Early for Greater Business Certainty

In today’s complex industrial relations environment, greater business certainty is one of the most valuable commodities a business can secure. 

Enterprise Agreements (EAs) provide tailored employment terms that override modern awards once approved by the Fair Work Commission (FWC). While every agreement includes a nominal expiry date, it does not cease to operate at that point, it continues until replaced or terminated (Fair Work Commission, 2024). Waiting until expiry to negotiate a replacement, however, can create significant risks. By contrast, early negotiation provides clarity, stability and confidence for both employers and employees.

After an EA passes its nominal expiry date, employees and unions gain the right to take protected industrial action, such as strikes, to push their bargaining claims (Solo, 2025). This introduces uncertainty, operational disruption and reputational risks for employers. Early negotiation keeps the agreement “in term” and removes the immediate threat of industrial action. It also helps employers avoid being drawn into multi-employer bargaining processes, which have been expanded under the Secure Jobs, Better Pay reforms (King & Wood Mallesons, 2023).

Labour costs represent a major expense for most organisations. An EA negotiated early can lock in future wage increases and conditions for the life of the agreement, providing businesses with a clear picture of their cost base. This predictability supports long term planning, budgeting and investment decisions. For employees, certainty around entitlements builds confidence and engagement. As Peninsula (2025) observes, stability on pay and conditions fosters stronger workplace culture and morale.

Delaying renegotiation until after expiry can lead to compliance issues. If award rates rise above the expired agreement’s wage rates, employers may be forced to make ad-hoc adjustments to remain compliant with minimum standards (Solo, 2025). Early negotiation avoids this scenario, ensuring the agreement reflects current legal obligations and best practice. It also allows employers to modernise clauses, streamline rostering and introduce provisions such as flexible work arrangements or the right to disconnect, important updates in today’s changing industrial landscape (Fair Work Ombudsman, 2025).

Commencing bargaining before expiry signals to employees and unions that management is proactive and committed to fair outcomes. This can strengthen trust and reduce adversarial behaviour at the table. Meaningful consultation also gives employees a greater sense of involvement and ownership, which can translate into higher productivity and retention (Sprintlaw, 2025a). Starting negotiations early also prevents negotiations being rushed, and can give time to modernising the agreement particularly where previous clause need to be rewritten to be upgraded.

Negotiating an EA is complex. It involves legal compliance, operational and strategic thinking and an understanding of day to day workplace realities. An experienced employee relations specialist with direct industry experience can bridge these gaps. They bring practical insights into operations, model wage impacts, manage union engagement and ensure compliance with the Better Off Overall Test (BOOT). Their guidance allows businesses to secure certainty without overlooking employee needs.

Business certainty cannot be overstated in a competitive economy. Negotiating a replacement enterprise agreement before expiry allows employers to avoid disruption, maintain compliance, and lock in predictable wage outcomes. It also fosters stronger engagement and culture. By seeking advice early and involving experienced employee relations specialists, businesses can secure an agreement that balances operational requirements with employee wellbeing, providing certainty in an uncertain world.