FWC issues final ‘zombie’ agreement warning ahead of December 7 cutoff

Employers have less than weeks to prepare for the sunsetting of ‘zombie’ workplace agreements on December 7, the Fair Work Commission says, in a last-minute warning to workplaces still using agreements struck before 2010.

‘Zombie’ agreement refers to any workplace agreement established before January 1, 2010.

While many of these agreements have collapsed on their own, because they have been replaced by more modern agreements, or they apply to workplaces or sites that no longer operate, some ‘zombie’ agreements persist.

The Albanese government says these ‘zombie’ agreements can include outdated pay structures and conditions for workers, leaving employees worse off than underlying industry awards or new enterprise bargaining agreements.

Businesses can check if they are using a ‘zombie’ agreement at the Fair Work Commission website.

On Monday, the Fair Work Commission again warned employees that ‘zombie’ agreements will automatically terminate on December 7.

Employees on a ‘zombie’ agreement, who are not covered by a new enterprise agreement, may become subject to the conditions set out by a modern award if no replacement is set.

However, employers, employees, and unions representing at least one employee covered by a ‘zombie’ agreement can apply for an extension from the Fair Work Commission before December 7.

The FWC says it will “generally” approve an extension if:

• It is “reasonable in the circumstances” to do so, or,
• Enterprise bargaining is already underway on an agreement that would supersede the ‘zombie’ agreement, or,
• Workers would be better off under the ‘zombie’ agreement than the underlying industry award.

Additional extensions are available for pre-2010 agreements which have already been extended.

You can read more about extending a ‘zombie’ agreement before December 7 at the Fair Work Commission website.

The Fair Work Commission says businesses unsure about their next steps can seek help from their employer representative group, while employees can contact their relevant union.

Businesses that had at least one employee covered by a pre-2010 agreement were required to give written notice of the changes no later than June 6 this year.