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.
(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.
(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.
(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.