Since 28 March 2008 Australian Workplace Agreements (AWAs) can no longer be offered to new or existing employees. However, AWAs currently operating will remain in force until the nominal expiry date (and beyond). AWAs continue to operate indefinitely beyond this date until terminated or replaced. However, after the nominal expiry date, either party can unilaterally terminate the AWA with notice.

An AWA is a formal statutory agreement made between an individual worker and the employer and lodged with the Workplace Authority. While identical AWAs are sometimes used by employers for a group of employees, each employee must sign it for that person to be bound. Employees can use a bargaining agent to bargain on their behalf, but this is not compulsory (see below).

An employee must genuinely consent to entering into an AWA and it is an offence for an employer to apply duress to force an employee into signing an AWA. However, an AWA can be offered as a condition of employment. This means that if you want the job, you have to sign the AWA. The law does not treat this situation as one involving duress.

The conditions of an AWA must at least meet those set in the Australian Fair Pay Commission Standard (AFPCS). AWAs must also contain provisions that aim to avoid discrimination and cannot include provisions that prohibit or restrict any of the parties disclosing details of the AWA to another person.

Once lodged, an AWA completely displaces any CA or award which would otherwise apply for the period of its operation, which is nominally for 5 years unless an earlier date is specified in it. An AWA is not limited to the 15 allowable matters for Federal Awards. The AWA only takes effect after employment has commenced and the AWA has been filed with the Workplace Authority. Successor employers are also bound by the AWA for 12 months.

An AWA can only be terminated by consent of the employer and employee during the life of the agreement. After the 'nominal expiry date' either party may terminate the AWA by providing at least 90 days notice to the other party before lodging a declaration with the Workplace Authority. The employee then reverts to the APFCS and any applicable protected award conditions.