If you are an employer with a have a pre-2010 agreement that covers one or more employees (also known a ‘zombie agreement’), you are required to notify affected employees in writing about the sunsetting of the agreement. You must do this before 7 June 2023. Failing to give the required written notice to employees is a breach of a civil penalty provision.
Fair Work has provided an example template letter that can be used for this purpose.
Please note, it is not a requirement to advise your employees of what you intend to do next, however people respond best to certainty, so if you are aware of what your decision is, we recommend letting your team know.
Your options in relation to a Zombie Agreement are:
- Allow your agreement to lapse and therefore default to the Horticulture Award 2020 (or other applicable Modern Award) OR
- Apply to Fair Work for an extension of your current agreement OR
- Renegotiate a new Enterprise Agreement based on being able to prove this new agreement will pass the Better Off Overall Test (BOOT).
If you require further assistance with a Zombie Agreement, please contact us to discuss your options.