Unfeathering the undead: The end of Zombie Agreements

Unfeathering the undead: The end of Zombie Agreements
Drew Cutler
Drew Cutler
minute read
June 22, 2023
Workforce compliance
Industry news

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.  

Employers will not get many opportunities to make mistakes when implementing new entitlements for employees. The Federal Government’s proposed wage theft legislation is on the horizon, now is the best time for employers to address their compliance concerns. Yellow Canary offers an automation solution to workforce compliance that is built for speed, scalability and accuracy. Our purpose-built, reliable platform is designed to be configured to your business, and the Enterprise Agreements, awards and legislation of your operations.

We work with your employee data and advisory partners to provide actionable insights and intelligence through reports, analytics and dashboards to ensure you remain compliant, always.

* 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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