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ARTICLE · 02 JUNE 2020

Enterprise agreements - Better Off Overall Test (BOOT)

The BOOT is a test to ensure the employees are not disadvantaged compared to other employees covered by relevant award/s.

AustraliaEmployment and HR

There are two steps to obtaining approval for a new enterprise agreement. The first step is for employees to vote on whether they approve of the proposed enterprise agreement. If the majority of employees vote in favour of the new enterprise agreement the agreement progresses to the second step.

The second step in approving a new enterprise agreement is obtaining approval from the Fair Work Commission (the FWC). One of the key factors that the FWC needs to be satisfied of before approving a proposed enterprise agreement is whether the enterprise agreement passes the Better Off Overall Test (the BOOT).

So what is the BOOT? What does better off overall mean? Who must be better off?

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