Greenfields agreements and payroll: what changes

A greenfields agreement changes payroll by setting project-specific wages, allowances, overtime, super and roster rules before workers are hired. Once approved and operating, payroll must apply those terms instead of simply continuing with the relevant modern award setup.

What is a greenfields agreement?

A greenfields agreement is an enterprise agreement made for a genuinely new enterprise that has not yet employed any of the workers who will be covered.

In construction, the new enterprise might be a major project, a new business activity or a distinct undertaking. Calling an existing site “new” does not make it greenfields. The employer cannot already have employed people to perform the work covered by the proposed agreement.

The agreement is made between the employer, or employers, and one or more relevant employee organisations, usually unions. There is no employee vote because there are no covered employees yet.

You can read more about construction enterprise agreements in the EBA hub.

When do the payroll changes start?

Do not load the new rates just because bargaining has finished or the agreement has been signed.

The Fair Work Commission must approve the agreement. As at November 2026, an enterprise agreement generally starts operating 7 days after approval, unless the agreement specifies a later date. Check the approval decision and the agreement itself before changing payroll.

This creates three dates worth recording:

1. The date the agreement was made.
2. The Fair Work Commission approval date.
3. The date the agreement starts operating.

The third date is the one payroll usually needs. If it falls during a pay cycle, split the calculation where required. Hours worked before commencement stay under the previous lawful arrangement. Hours worked after commencement use the new agreement.

As at November 2026, a greenfields agreement can have a nominal expiry date no more than 4 years after Fair Work Commission approval. That does not mean pay rates stay fixed for four years. Many agreements contain annual increases on stated dates.

There is also a 6-month notified negotiation period available under the Fair Work Act greenfields bargaining process, as at November 2026. If agreement is not reached during that period, an employer may have a pathway to seek Commission approval, subject to the statutory tests. It is not automatic approval.

What changes in the pay run?

The modern award remains important when the agreement is assessed, including through the better off overall test. But once the approved agreement operates, payroll must follow its enforceable terms.

Here is the practical comparison.

Payroll item	Typical award-based setup	Greenfields agreement setup
Base rates	Award classification and current award rate	Agreement classification and rate, subject to legal minimums
Wage increases	Usually linked to award updates	Dates and percentages written into the agreement
Site allowances	Award allowance where applicable	Project, site, height, productivity or disability allowances specified by the agreement
Rostered days off	Award rules and workplace arrangements	Agreement-specific accrual, banking and payment rules
Overtime	Award triggers and penalty rates	Agreement triggers, daily spread, minimum payments and penalty rates
Shiftwork	Award shift definitions	Agreement definitions, start times and shift loadings
Travel and fares	Award entitlement if conditions are met	Fixed daily amount, reimbursement or another stated method
Superannuation	Statutory SG and applicable industrial terms	Statutory SG plus any agreement minimum, fund or contribution rules
Redundancy and other funds	Award or statutory treatment	Contributions to named redundancy, income protection or other permitted schemes

Never assume two construction greenfields agreements use the same definitions. One may treat a site allowance as an all-purpose allowance. Another may exclude it from overtime calculations. That difference flows through ordinary pay, overtime, leave and sometimes super.

Set up classifications and rates first

Start with the classification structure. Match each role to the agreement description, not just the worker’s job title.

A carpenter, operator, labourer or apprentice may have several levels. The correct level can depend on duties, qualifications, experience or responsibility. Record why the classification was selected.

Then load every scheduled rate increase before the effective date. Test future-dated changes in a spare pay run if your system allows it. A 4-year nominal term can contain several separate increases.

Also check whether a stated hourly rate already includes particular allowances. Do not add an allowance twice. On the other hand, do not treat every higher agreement rate as absorbing every entitlement. Absorption must be supported by the wording and still produce the required result.

Check allowances line by line

Construction greenfields agreements often have more allowance detail than an ordinary payroll template expects. Common examples include:

• site and project allowances
• fares and travel payments
• multistorey or height allowances
• meal allowances
• leading hand allowances
• first aid payments
• tool allowances
• living-away-from-home arrangements
• wet weather or inclement weather provisions

For each item, record the trigger, amount, tax treatment and whether it is all-purpose. Also note whether it applies per hour, per day, per week or per occasion.

The wording matters. A weekly allowance might require a full payment after any attendance, or it might be reduced for unpaid absence. Do not guess from the allowance name.

Rebuild overtime, shifts and RDO rules

Here is where payroll errors usually become expensive. Check the agreement’s ordinary hours, span of hours, daily overtime trigger, weekly overtime trigger and weekend penalties.

Then check how the rules interact. For example, a worker might perform 10 hours on a weekday, exceed the daily ordinary-hours limit and also work outside the stated span. The agreement should tell you which penalty applies and whether penalties are cumulative or substituted.

RDO rules need their own review. Confirm how hours accrue, whether the RDO component is shown separately, what happens on termination and how work performed on an RDO is paid.

Public holiday, night shift and weekend clauses should also be tested with sample timesheets before the first live run.

Super may be more than 12 per cent

As at November 2026, the statutory super guarantee rate is 12% of ordinary time earnings. A greenfields agreement can create an additional or higher contribution obligation.

Some construction agreements state a minimum weekly super contribution. Others require the greater of the statutory calculation and a specified minimum. The treatment of apprentices, part-time employees, unpaid absences and partial weeks depends on the clause.

Use the minimum weekly super calculator to compare the percentage calculation with the agreement minimum. Make sure the pay code also handles contribution caps and ordinary time earnings correctly.

Keep evidence of every payroll rule

As at November 2026, employee records generally need to be kept for 7 years. Payslips must generally be issued within 1 working day of payment.

Keep the approved agreement, Commission decision, classification record, rate schedules and payroll configuration notes together. If a clause is later varied or interpreted by an order, keep that material too.

Finally, run a parallel check before the first payment. Test an ordinary week, overtime, an RDO, a public holiday, a shift, leave and termination. A greenfields agreement is built before the workforce arrives. That makes early testing much easier than fixing months of underpayments later.