(1) While a copied State award for a transferring employee:
(a) covers the employee, or an employer (whether the new employer or another national system employer) or other person in relation to the employee; and
(b) is in operation;
a modern award does not cover the employee, or the employer or other person in relation to the employee.
Note 1: When the copied State award for a transferring employee ceases to cover the employee, a modern award will start to cover the employee, or an employer or other person in relation to the employee.
Note 2: This subsection may operate in relation to an employer that is not the new employer in the situation where there has been a later transfer of business by the new employer (see Part 2 - 8).
(2) Subsection (1) does not apply for the purposes of section 193 (which is about the better off overall test for enterprise agreements).
Note: For the purposes of determining whether an enterprise agreement that covers a transferring employee passes the better off overall test, subsection (2) allows the enterprise agreement to be compared against a modern award that covers the employee.
(3) This section has effect subject to any FWC order about coverage under subsection 768BA(1).