Workplace Agreements and How to Link Them to Bonuses

A workplace agreement, in simple terms, is a formal agreement between the employer and employee about terms and conditions of employment and entitlements. When a workplace agreement has been made any awards will be devalued and will no longer apply.

Who can make them and why make a Workplace Agreement?

  1. You can build an enterprise agreement under federal industrial laws if you are a national system employer (employers covered by the Fair Work Act).
  2. You can build a workplace agreement under Western Australian State Laws if you are a non-national system (Contractors, Non-constitutional Corporation, and Local Government).

The main reason why you need to make a workplace agreement, in the first place, is to specifically suit the needs of your business and your employees. It’s a big value for your business, thus it can help you maximize productivity and business profit. Even though employers cannot be liable for award entitlements for future payments, then it is best to settle them first before onset.

Linking Workplace Agreements to Bonuses

As previously stated above that workplace agreement does not secure future awards, then linking them to bonuses will not make sense, right? The answer to this question is Performance Incentive Plans.

Performance incentive plans are created specifically to support a high-performance working tradition wherein an employee is actively engaged in searching for customer-centred solutions to develop the business and improve financial performance.

By including this program to the workplace agreement you then will be able to get more than the required output for your business. Aside from that, business owners can reap the benefits of work efficiency and productivity. Employees can also benefit from the flexibility of working and also enjoy these incentives:

  • Allowances
  • Public Holidays
  • Annual leave loadings
  • And more

But first things first…

I want to stress this out in order to make this feasible. Ensure to plan this out especially on the initial process, wherein both the employer and employee need to agree with the terms and conditions of the workplace. This is really important and must be given with utmost priority. Who wouldn’t want to have a great working relationship with their employer? I guess no one, right? Unless otherwise you are unfit for the job.

Bottom-line: Workplace agreements and linking them to bonuses can be beneficial for both the employer and employee. It is a good work courtesy for the employee as they can perceive their employer is compassionate about their needs.

Word of Advice: A satisfied employee is a productive employee

So until next time, keep your employees happy and make the most out of it!

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