“We know that between 2006 and 2009, at least 4,000 contracts have not yet been terminated in the hotel, fast food and retail sectors. There are still hundreds of workers, but that applies only to the basic hourly rate of wages in an enterprise agreement. Many outdated enterprise agreements have expiry dates, but that doesn`t mean they`re automatic. “We believe that these outdated zombie agreements need to be terminated and replaced with Fair Work Act-compliant agreements. He added that the current mechanism for replacing zombie agreements was “an effective way” and confirmed that the database of the Department of Labor Contracts and Small Businesses could not confirm the number of zombie agreements in force. A Krispy Kreme employee gathered for her colleagues across Australia and filed official documents to kill the US company`s unfair “zombie” deal. Under the Fair Labour Act, WorkChoices-era agreements can continue to the Fair Labour Commission after the expiry date: “Zombie Agreement” is a term used by the ACTU to describe collective agreements beyond their nominal expiry date, including agreements reached before the Fair Work Act 2009 came into force. The NoniB case and the Merivale Group attest to this point in which the Fair Work Commission ordered the termination of agreements in force since 2011 and 2007 respectively. Companies were therefore required to update and organize their wage settlement procedures without delay to ensure that their staff now receive at least the minimum rates prescribed in the respective price, thus causing negative publicity to organizations.
In the case of the On The Run agreement, the “zombie” agreement was concluded in 2007 during the WorkChoices era and was due to expire in 2012. If you have a zombie deal that still applies to your workplace, it`s time to review your payment terms and get advice on the best way to proceed.