What is good faith bargaining?
Good faith bargaining is the set of requirements parties must meet under the Fair Work Act when negotiating an enterprise agreement.
Good faith bargaining describes the way parties must conduct themselves when negotiating an enterprise agreement. The requirements are set out in section 228 of the Fair Work Act 2009 and are designed to keep negotiations genuine and constructive — though they do not force any party to agree to a particular term.
The requirements include attending and participating in meetings at reasonable times, disclosing relevant information in a timely manner (other than confidential or commercially sensitive information), responding to proposals in a timely way, giving genuine consideration to and reasons for responses, and refraining from capricious or unfair conduct that undermines bargaining. If a party fails to meet them, the Fair Work Commission can make bargaining orders.
Key facts
- •Set out in section 228 of the Fair Work Act 2009
- •Requires attending meetings, sharing relevant information, and responding to proposals in good time
- •Does not require a party to make concessions or agree to any specific term
- •Bans capricious or unfair conduct that undermines collective bargaining
- •The Fair Work Commission can make bargaining orders if the requirements are breached
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Does good faith bargaining mean my employer has to agree to my claims?
No. The requirements govern how the parties negotiate, not the outcome. An employer or union must bargain genuinely and reasonably, but they are not required to make concessions or agree to any particular term.
What happens if a party doesn't bargain in good faith?
A bargaining representative can apply to the Fair Work Commission, which can make bargaining orders requiring the party to comply. Continued breaches can lead to further orders and, in some cases, a workplace determination.
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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.