Section 143A — Fair Work Act 2009: Coverage terms of modern enterprise awards

Coverage terms must be included (1) A modern enterprise award must include terms (coverage terms) setting out, in accordance with this section: (a) the enterprise or enterprises to which the modern enterprise award relates; and (b) the employers, employees and organisations that are covered by the modern enterprise award. Enterprises (2) A modern enterprise award must be expressed to relate: (a) to a single enterprise (or a part of a single enterprise) only; or (b) to one or more enterprises, but only if the employers all carry on similar business activities under the same franchise and are: (i) franchisees of the same franchisor; or (ii) related bodies corporate of the same franchisor; or (iii) any combination of the above. Employers and employees (3) A modern enterprise award must be expressed to cover: (a) a specified employer that carries on, or specified employers that carry on, the enterprise or enterprises referred to in subsection (2); and (b) specified employees of employers covered by the modern enterprise award. Organisations (4) A modern enterprise award may be expressed to cover one or more specified organisations, in relation to: (a) all or specified employees covered by the award; or (b) the employer, or all or specified employers, covered by the award. Outworker entities (5) A modern enterprise award must not be expressed to cover outworker entities. How coverage etc. is expressed (6) For the purposes of subsection (2), an enterprise must be specified: (a) if paragraph (2)(a) applies to the enterprise—by name; or (b) if paragraph (2)(b) applies to the enterprise—by name, or by the name of the franchise. (7) For the purposes of subsections (3) and (4): (a) an employer or employers may be specified by name or by inclusion in a specified class or specified classes; and (b) employees must be specified by inclusion in a specified class or specified classes; and (c) organisations must be specified by name. Employees not traditionally covered by awards etc. (8) A modern enterprise award must not be expressed to cover classes of employees: (a) who, because of the nature or seniority of their role, have traditionally not been covered by awards (whether made under laws of the Commonwealth or the States); or (b) who perform work that is not of a similar nature to work that has traditionally been regulated by such awards. Note: For example, in some industries, managerial employees have traditionally not been covered by awards.