The BOOT

The 'better off overall test' (BOOT) applies to the making of enterprise agreements under the Fair Work legislation. This is known colloquially as the 'Boot Test'.

The ‘better off overall test’ (BOOT) applies to the making of enterprise agreements under the Fair Work legislation.
 
From 1 January 2010, enterprise agreements have to pass the BOOT, which means that each employee must be better off under the agreement than (s)he would be overall in comparison to the relevant modern award and the NES.
 
Minimum wage provisions in awards or the National Minimum Wage override less generous provisions in an enterprise agreement. This means that where minimum award rates increase during the life of an agreement to above the agreement rates, employers have to make up any difference.
 
Also, the NES automatically overrides any condition in an enterprise agreement that is less generous.
 
Role of the Fair Work Commission
 
The Fair Work Commission (FWC) is able to look at different classes of employee to be covered, rather than each individual employee, to determine whether each employee is better off overall. The FWC must also be satisfied that the employees covered, or to be covered, by the agreement were 'fairly chosen'.
 
The FWC must also be satisfied that approving a greenfields agreement (ie no existing applicable award or agreement coverage) lodged with it would be in the public interest.
 
Sample documentation
 
For an extensive library of policies, agreements, forms, correspondence and checklists, designed to make human resources (HR) management easy for your business see our HR Advance website.
 
 

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