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Enterprise Agreements & Better Off Overall Test

Recently there have been a number of applications for approval of Enterprise Agreements which have failed to pass the Better Off Overall Test (BOOT).

Upon investigation by the Fair Work Commission (FWC), a number of concerns were identified in relation to Enterprise Agreements lodged for approval by Small Businesses.

Concerns raised by the FWC have included the lack of compensation for loss of addtitional rates and penalty pay, concern regarding the employee’s understanding of the EA, and inssuficient pay increases.

Due to these concerns, a number of the Enterprise Agreements have been rejected because they do not satisfy legal requirements.

What is an Enterprise Agreement?

An Enterprise Agreement is a collective workplace contract made between you and all of your employees which replaces the Modern Award(s) that would otherwise apply to your business.

More importantly, Enterprise Agreements do not have any legal affect until they are approved by the FWC. An Enterprise Agreement must pass the BOOT in order to be approved.

There are many factors to consider when creating an Enterprise Agreement and we can take the hard work out of it for you by providing expert advice and support. We can help you navigate your way through the complexities of Modern Awards, the National Employment Standards, and even negotiate and submit an Enterprise Agreement on your behalf.

To find out more about Enterprise Agreements, please call the ER Expertise Team on  1300 781 299.