Certain terms have no effect
Unreasonable deductions for benefit of employer (1) A term of a modern award, an enterprise agreement or a contract of employment has no effect to the extent that the term permits, or has the effect of permitting, an employer to deduct an amount from an amount that is payable to an employee in relation to the performance of work, if the deduction is: (a) directly or indirectly for the benefit of the employer or a party related to the employer; and (b) unreasonable in the circumstances. (2) The regulations may prescribe circumstances in which a deduction referred to in subsection (1) is or is not reasonable. Unreasonable requirements to spend or pay an amount (3) A term of a modern award, an enterprise agreement or a contract of employment has no effect to the extent that the term: (a) permits, or has the effect of permitting, an employer to make a requirement that would contravene subsection 325(1); or (b) directly or indirectly requires an employee to spend or pay an amount, if the requirement would contravene subsection 325(1) if it had been made by an employer. Deductions or payments in relation to employees under 18 (4) A term of a modern award, an enterprise agreement or a contract of employment has no effect to the extent that the term: (a) permits, or has the effect of permitting, an employer to deduct an amount from an amount that is payable to an employee in relation to the performance of work; or (b) requires, or has the effect of requiring, an employee to make a payment to an employer or another person; if the employee is under 18 and the deduction or payment is not agreed to in writing by a parent or guardian of the employee.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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