Of course, entry into an EA can sometimes be a requirement of a prime contractor before entering into a contract to carry out work, especially on large construction sites. This type of application is as controversial as «settlement agreements» with a union, but which are not approved by the FWC. However, it is not enough to simply offer, answer questions and explain the agreement to workers on demand, especially if the proposed agreement removes the important rights that workers would otherwise have enjoyed. The High Court of Australia`s decision in Electrolux v. the Australian Workers` Union has given rise to a major legal issue in the case of enterprise agreements. The question was what these industrial instruments could cover. The Australian Industrial Relations Commission set the issue in 2005 for the three certified agreements. On the one hand, collective agreements benefit at least in principle employers, as they improve «flexibility» in areas such as normal hours, flat-rate hourly wage rates and benefit conditions. On the other hand, collective agreements benefit workers, since they generally offer higher wages, bonuses, additional leave and higher rights (such as redundancy pay) than a bonus.

[Citation required] An agreement is reached with a single company between a single employer (or more than two or more employers with a single interest) and workers who are employed at the time of the agreement and who are covered by the agreement. Employers with a common interest are employers who are in a joint venture or joint venture or who are related companies. They may also be employers approved by the Commission for fair work as an employer with a single interest, which can be either franchised or by other employers, if the Minister of Labour has made a statement. In addition, «vulnerable workers», such as workers from different cultural and linguistic backgrounds, young workers and/or workers who do not have negotiators for the agreement, must be declared as keywords.