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Zombie Enterprise Agreements

In this context, we recommend that employers check whether their company agreements have expired, in particular whether the agreement was created at the time of WorkChoices, and come to the fore. As the Merivale Group has shown, the termination of an agreement can have a significant negative effect on a company that is not well prepared when employees and/or unions request the termination of a contract. For example, merivale Group not only received significant negative publicity regarding its outdated agreement, but only had 6 weeks to update its entire payroll system and convert its 3,000 employees across 70 locations at the appropriate modern price. Merivale`s group`s human resources director said the company should also conduct a comprehensive review of its workforce and consider reclassifying some employees based on attribution. Tip 1 – Check the wage agreements in your company agreements Tip 2 – When the operating contract has expired, take active steps to mitigate the risk of dismissal But lawyers and unions claim that tens of thousands of employees of other companies across the country are stuck in WorkChoices-era agreements and often don`t know about it due to a gap in the modern labor relations system, which the federal government has so far rejected. It is important to note that agreements entered into under the Choice of Work Act were not subject to the „global better off test” and could put employees in a worse position than they would be under a modern price. The WorkChoices Act was later repealed, but many of the agreements created during this period are still in force. This created the term „zombie deals” in the media. He advises all employees to review their company agreements to ensure they are paid according to a modern reward. This instruction may work in the short term, but over time, the base rates of modern premiums tend to catch up and exceed those of agreements, making this instruction a dangerous proposition. Under the FWA, WorkChoices-era agreements or those entered into under the FWA will continue to be under threat after their nominal expiration date until the FWC approves a replacement or terminates the agreement. .