Sunset

A sunset clause in a legal document like a registered agreement signifies an automatic termination of its terms on a specific future date. After this date, the agreement no longer has legal effect. This is a way to ensure that agreements are revisited and updated as needed. Agreements made before 2010 that kept operating long after their nominal expiry date were called 'zombie agreements', and under the Secure Jobs, Better Pay changes they sunset (ended automatically) on 7 December 2023 unless the Fair Work Commission extended them.

Sunsetting and today's agreements

Enterprise agreements made under the Fair Work Act have a nominal expiry date of up to 4 years, but they keep applying after that date until they are replaced or terminated. The Fair Work Commission can terminate an agreement that has passed its nominal expiry date on application, in limited circumstances. Employees covered by an older agreement must still be paid at least the base rates in the current modern award. For example, a business still using a 2015 agreement should review whether it remains suitable.

See zombie agreements and our guide to enterprise agreements.