What is the Better Off Overall Test?
The Better Off Overall Test (BOOT) requires an enterprise agreement to leave each employee better off overall than the relevant modern award.
The Better Off Overall Test, usually shortened to BOOT, is the standard the Fair Work Commission applies when approving an enterprise agreement. Each employee covered by the agreement must be better off overall than they would be under the relevant Modern Award.
The test looks at the agreement as a whole, weighing more generous terms against any that are less favourable. An agreement can trade off some award entitlements as long as the overall package leaves the employee better off than the award would.
Key facts
- •Applied by the Fair Work Commission under the Fair Work Act 2009
- •Each employee — and each prospective employee — must be better off overall than under the relevant award
- •The Commission assesses the agreement as a whole, not clause by clause
- •If an agreement fails the BOOT, the Commission can refuse to approve it or accept undertakings to fix it
- •The Modern Award is the benchmark the agreement is compared against
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Who carries out the Better Off Overall Test?
The Fair Work Commission applies the BOOT when it decides whether to approve a proposed enterprise agreement.
Can an enterprise agreement pay less than the award for some things?
An agreement can have terms that are less favourable than the award on individual points, but only if the overall package still leaves each employee better off overall than the award.
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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.