Introduction
When you create or vary an agreement, the terms must pass the ‘Better Off Overall Test’. Follow these steps so your agreement meets the requirements.
Content
1. Find the award
Find and check the award or awards that covers your industry or occupation.
If you know the name of the relevant award, view our List of awards A to Z.
Not sure which award(s) apply to you? Use the Fair Work Ombudsman’s website to Find the right award.
2. Compare the agreement to the award
Next, you must compare the agreement to the relevant award(s) and identify:
- which terms in the agreement are more beneficial to employees
- which terms in the agreement are less beneficial to employees
- which award conditions are not in the agreement.
Consider these terms and conditions and ensure all award covered employees and all reasonably foreseeable employees are better off overall under the agreement compared to the relevant modern award(s).
3. Add details to the employer declaration (Form F17)
When you apply for approval of your agreement with us, you must show how the agreement compares to the relevant award(s) in the Form F17. Employers often forget to add this information, which delays the approval process.
Questions in Part 2 of the form ask if the agreement, compared with the relevant award(s):
- contains any terms and conditions that are more beneficial
- contains any terms and conditions that are less beneficial
- contains extra benefits that are not in the award
- leaves out any benefits that are in the award
- contains any other different terms or conditions that you have not already described.
If you answer ‘yes’ to any of those questions, you must list the relevant terms and conditions from the relevant award(s) and/or the agreement.
Transitioning from a multi-enterprise agreement
Content
If you are transitioning from a supported bargaining agreement or a single interest employer agreement, you will be asked to identify the current supported bargaining agreement or single interest employer agreement that covers you and your employees.
Next, you must compare the agreement to the supported bargaining agreement or single interest employer agreement and identify:
- terms in the agreement are more beneficial to employees
- which terms in the agreement are less beneficial to employees
- which supported bargaining agreement or single interest employer agreement conditions are not in the agreement.
Consider these terms and conditions and make sure all employees are better off overall under the agreement compared to the relevant supported bargaining agreement or single interest employer agreement.