Agreements made before 2010 that continue to operate are known as ‘zombie’ agreements.
The Secure Jobs, Better Pay Act automatically terminates these zombie agreements on 7 December 2023 if the agreement has not already been terminated before this time. This is known as ‘sunsetting’.
If you have a ‘zombie’ agreement and do not want it to be terminated. You can apply to the FW Commission to extend a zombie agreement in certain circumstances and before 6 December 2023.
Any organisations with ‘zombie’ agreements still in place from 7 December 2023, may be penalised up to $82,500 (company) or $16,500 (individual) per breach.
For some employers, this change will significantly impact the pay and conditions they provide their employees.
If you think you are covered by a ‘zombie’ agreement or would like to learn more about these changes, please contact our Workplace Relations and Legal Team on (02) 6175 5900.