ATO warns employers they have two weeks left to tell workers about ‘zombie’ workplace agreements

Businesses whose employees are covered by pre-2010 ‘zombie’ workplace agreements have just two weeks to inform their staff that those pay deals will expire at the end of the year.

As part of the Labor government’s crackdown on more than 100,000 ‘zombie’ agreements used by employers, agreements enacted before 2010 will automatically terminate on December 7 this year.

Workers currently covered by a ‘zombie’ agreement may be able to transfer to an underlying modern award or separate enterprise agreement.

Employees and employers who wish to extend their pre-2010 agreements can also apply for an extension from the Fair Work Commission (FWC) before December 7.

But before that point, businesses have been urged to reach out to any affected workers.

Australian Taxation Office on Monday reminded businesses that workplaces reliant on those antiquated agreements must inform their employees of this ‘sunsetting’ scheme in writing by June 7 this year.

“Failing to give the required written notice to your employees is a breach of a civil penalty provision,” FWC documents state.

“This means a financial penalty may be imposed on you by a court.”

To aid business operators in the process, the FWC has published a written template for businesses hoping to inform their employees of the sunsetting timeline.

The FWC has also published resources for employers hoping to navigate those changes, which are available on the FWC site.