Zombie Agreements – Employers must take action
A mechanism to automatically terminate so-called “Zombie Agreements”, introduced in the Secure Jobs, Better Pay amendments to the Fair Work Act, will take effect on 7 December 2023.
Zombie Agreements are Enterprise Agreements or other collective agreements that were made before 1 January 2010 and continued to operate for the purposes of the Fair Work Act when it commenced.
The automatic expiration will happen on 7 December 2023 unless an application is made to the Fair Work Commission before 7 December 2023 to extend the default period for the agreement.
There is an additional deadline that employers need to be aware of under this amendment. Before 7 June 2023 Employers need to provide written notice to employees of the automatic expiration of Zombie Agreements on 7 December 2023. A failure to provide the written notice is a breach of a civil penalty provision.
Resources are available from the Fair Work Commission to assist employers to comply with the written notice requirement.
Alternatively, contact our Hobart or Kingston Office Employment Law team on 03 6226 1200.
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