An enterprise agreement doesn’t automatically get re-tested against the Better Off Overall Test (BOOT) every time award rates move.

The BOOT is applied once, at a specific “test time” – when the application for approval (or variation) is made. At that point, the Fair Work Commission checks whether every award-covered employee, and every reasonably foreseeable employee, would be better off overall under the agreement than under the relevant modern award (Fair Work Act, 2009)
But the award doesn’t stand still. So an agreement’s original margin over the award can quietly narrow, even though the agreement itself hasn’t changed a word.

What is wage compliance, and why does it matter to CHROs?
Wage compliance means ensuring every employee is paid correctly under the Fair Work Act, Modern Awards, Enterprise Agreements and superannuation law, while being able to demonstrate that with evidence.