Reminder: requirement to give employees covered by a ‘zombie’ agreement notice before 7 June 2023

As outlined in our 15 February 2023 Legal Alert, an employer covered by a ‘zombie’ agreement must, before 7 June 2023, give employees covered by a ‘zombie’ agreement written notice advising:

• That the employee is covered by that agreement; and
• That the agreement will terminate unless an application is made to the FWC before 7 December 2023, for the FWC to extend the ‘default period’; and
• Of the day on which part 13 of the Fair Work Amendment (Secure Jobs Better Pay) Act 2022 (Amendment Act) commenced (i.e. 7 December 2022).

Because failure to provide this written notice will expose employers to penalties, employers are urged to prioritise this requirement. We can assist employers to draft the appropriate notice, if required.

Employers should also consider what these changes mean for their operations. If a zombie agreement terminates at 7 December 2023 without an extension, a modern award (or awards) is or are likely to apply. If this cannot meet the needs of the employer’s enterprise, or is otherwise not desired, employers should consider whether an extension of the ‘zombie’ agreement is appropriate, and if not, whether bargaining for a new agreement is suitable.

EMA Legal can assist employers to understand these changes and provide advice about bargaining strategies.