Zombie Agreements are agreements that were made before 1 January 2010, when the modern awards were introduced under the Fair Work Act 2009 (FWA). These agreements have been in effect ever since and differ from agreements made after that date.
Unlike the agreements made under the FWA, “zombie” agreements were not subject to the better-off overall test (BOOT) against the modern awards. This means that employees covered by these agreements may have less favourable terms and conditions than what they would receive under the applicable modern award.
All "zombie" agreements will automatically expire on 7 December 2023. However, there is an opportunity to extend this period for up to 4 years by submitting an application to the Fair Work Commission on or before 6 December 2023.
Following the termination of these zombie agreements, most impacted employees will revert to a Modern Award. For businesses, this means all new pay rates and entitlements & conditions and rostering arrangements for employees.
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* Yellow Canary content on this website is intended solely for the purpose of offering commentary and general knowledge. The content is not intended to constitute legal advice. You should seek legal or other professional advice before acting or relying on any of the content.
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