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‹ HR Glossary

Better Off Overall Test (BOOT)

Fair Work and entitlements
What is the Better Off Overall Test (BOOT)?

The Better Off Overall Test (BOOT) is the test the Fair Work Commission applies before approving an enterprise agreement: every award-covered employee, and every prospective employee, must be better off overall under the agreement than under the relevant modern award.

How does the BOOT work?

The FWC compares the agreement as a whole against the award as a whole for each class of employee. Better pay can offset reduced penalty rates, extra leave can offset longer ordinary hours, but the overall position of each employee must land ahead of the award. It is a global comparison, not a line-by-line one, which is exactly why marginal agreements get intense scrutiny on rosters and shift patterns.

Why does the BOOT matter to employers?

It defines what an enterprise agreement can and cannot buy. An agreement that trades penalty rates for a flat rate only survives the BOOT if the flat rate genuinely leaves shift-working employees ahead, calculated on the hours they actually work. Agreements have been refused, and existing agreements terminated, over rosters that made some employees worse off in practice.

What happens if an agreement fails the BOOT?

The FWC can seek undertakings from the employer to cure the shortfall, and since the 2022 reforms it can also amend an agreement directly to pass the test. If neither fixes it, approval is refused and the award keeps applying.

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Related terms

Enterprise agreementModern awardPenalty ratesAll terms ›
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Common questions

Does the BOOT apply to every employee individually?

The test is applied to each award-covered employee and each prospective award-covered employee, but as an overall assessment per employee, not entitlement by entitlement.

When is the BOOT assessed?

At approval, and it can be revisited. Reassessment can be triggered where working patterns change materially from what the FWC was told at approval.

General guidance, not legal advice. Entitlements depend on the applicable award, agreement and jurisdiction. Rules and figures current as at July 2026 and reviewed annually.