The current Safe Jobs, Higher Pay reforms to the Truthful Work Act require employers to inform workers lined by so-called ‘zombie agreements’ – being agreements that have been made earlier than 1 January 2010 – that:
- the worker is roofed by an settlement based mostly transitional instrument; and
- the instrument will terminate on 7 December 2023 (except an software for extension is made to the Truthful Work Fee earlier than that point).
Employers who’re lined by such operative ‘zombie agreements’ are required to adjust to the duty to inform workers by 6 June 2023.
It’s important that employers adjust to this this obligation as a failure to take action constitutes a breach of a civil treatment provision of the Truthful Work Act.
The Truthful Work Fee has printed details about the notification obligation and the automated sunsetting of such agreements (together with a listing of pre-2010 agreements) on its web site.
What ought to employers lined by ‘zombie agreements’ be doing?
Employers who’re lined by operative ‘zombie agreements’ also needs to give consideration to the next issues:
- whether or not to make an software to increase the termination date from 7 December 2023 to as much as 7 December 2027;
- how to answer any software by an worker or union to increase the termination date;
- the extent to which any relevant trendy award phrases will apply to their workers from the termination date, and any payroll reconfiguration required to use such phrases; and
- whether or not it’s prudent to provoke bargaining for an enterprise settlement to exchange the Zombie Settlement.
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This text was ready by Rohan Doyle, Associate, and Mitchell Brennan, Senior Affiliate.
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