Agreement Variations

In most cases, a commercial contract contains an explicit clause specifying whether one or more of the contracting parties may modify their terms and the procedure for amending the treaty, such as whether an amendment must be made in writing and signed by all parties. The Commission makes available a checklist to help with the variation of an agreement: company agreements can vary in two ways with the agreement of the Fair Work Commission: the period of access to an agreement is the period that ends just before the start of the voting process. During the access period, employees must have access to a copy of a proposed amendment to a company agreement. Staff members must be informed of the details of the vote on the amendment before the start of the access period. Employers and their employees may agree to vary a company agreement, but such an amendment has no impact unless it is approved by the Fair Work Board. Read the COVID-19 Fact Sheet: Filing an Application to Amend an Agreement (PDF) The Fair Work Amendment (Variation of Enterprise Agreements) Regulations 2020 (April Amendment) temporarily reduced the period of access to a proposed amendment to a company agreement from 7 calendar days to one calendar day. Variation clauses go hand in hand with « Waiver » and « Whole Agreement » clauses – which are also standard clauses in English contracts. (The waiver clauses make it clear that a party`s wilful or accidental omission from the performance of a contractual right in a contract does not mean that the terms of the contract have changed in order to permanently distance it from the party that has that contractual right. Entire contractual clauses confirm that no other document or condition is part of the contract, i.e.

what you read in the document is what you get and no more.) However, in many cases where changes need to be made by mutual agreement between the parties, the agreed changes may not be legally binding or enforceable in the absence of a properly implemented amending document – so it is important that the parties take into account the modification requirements and implement waivers in accordance with the applicable contractual terms. This will reduce the scope for time- and cost-intensive litigation in the future. The purpose of an amending clause is to prevent attempts to undermine the written agreement informally and to avoid any dispute over whether a change was being considered and its precise terms. Such clauses are often present in commercial contracts, and in the 2018 Rock Advertising case, the courts confirmed that the law would enforce such clauses. In the event of a dispute as to whether the parties have entered into a valid agreement on the modification of their contract, the Tribunal will determine the question taking into account the relevant facts in the light of the usual rules of contract interpretation. . . .