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?