A large not-for-profit organisation, Oxfam Australia, has recently secured an agreement with its workforce to allow a 4-day working week in its organisation.
Summary of the Outcome
Introducing a 4-day work week is a trend which has been adopted overseas, and is an idea which has received support from some Australian organisations recently. This is due to research which shows that a 4-day work week promotes increased work-life balance and decreased absenteeism.
This trend has been a catalyst for Oxfam Australia’s recent enterprise bargaining.
Following negotiations with the employees’ union, the Australian Services Union, Oxfam Australia has since secured an agreement entitling permanent full-time employees working 35-hours per week to elect to work 30-hours over 4-days, without any loss of pay.
Under their new enterprise bargaining agreement, Oxfam Australia’s employees will be entitled to work those reduced hours but will not be penalised for doing so. This is predicted to be the first of many agreements to come in future potentially.
Enterprise Bargaining
Pursuant to the Fair Work Act 2009 (Cth), national system employers and their employees are entitled to negotiate agreements at an enterprise level through collective bargaining in good faith.
Generally, larger organisations engage in this process with their employees (typically through a union) to achieve a negotiated outcome with respect to employee entitlements.
It is important for employers to be mindful of the above.
If you have any employment queries related to your business, or if you wish to implement an enterprise bargaining agreement in your business, please contact Aaran Johnson or Simon Kumar (contact details below) to discuss how Marsdens can assist your business.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
