The BOOT is the key test applied by the Fair Work Commission to determine whether an enterprise agreement leaves employees better off than the relevant Modern Award.
Legislation: Fair Work Act 2009 s193 | Category: Enterprise Bargaining
What is Better Off Overall Test (BOOT)?
The Better Off Overall Test (BOOT) is the key test applied by the Fair Work Commission when assessing whether an enterprise agreement should be approved. For an agreement to pass the BOOT, the Commission must be satisfied that each employee covered by the agreement would be better off overall compared to the relevant Modern Award.
The test is applied prospectively, considering all the terms of the agreement against all the terms of the applicable award, including monetary and non-monetary benefits. The comparison is made for each class of employees and award-covered employees at the time the agreement is made.
Key Compliance Points for Employers
- The BOOT is not a line-by-line comparison — some conditions can be below award if the overall package is better
- Undertakings can be given to address BOOT concerns and allow approval of agreements that would otherwise fail
- Changes under the Secure Jobs Better Pay reforms (2022) have made the BOOT assessment more rigorous
- Enterprise agreements that fail the BOOT cannot be approved until concerns are addressed
Frequently Asked Questions
What is Better Off Overall Test (BOOT)?
The BOOT is the key test applied by the Fair Work Commission to determine whether an enterprise agreement leaves employees better off than the relevant Modern Award.
Why is Better Off Overall Test (BOOT) important for employers?
Understanding better off overall test (boot) helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
