Section 27BW allows employers and unions to collectively agree to exclude workers from the rights and duties in Chapters 2, 3, and 4, where conditions are met.
	A duty or right in Chapters 2, 3, and 4 does not apply in relation to a worker where the following conditions are met:
under subsection (3), a collective agreement must be in writing and made by or on behalf of a worker’s employer and one or more trade unions which have a certificate of independence (issued under section 6 of the Trade Union and Labour Relations (Consolidation) Act 1992);
under subsection (2)(b), the collective agreement must expressly exclude the duty or right and it must include terms that expressly replace the excluded duty or right. These replacement terms could include rights or duties that are modified versions of those they are replacing, for example, a right to payment for short notice cancellations but with a different short notice period to that to be specified in regulations under section 27BP(1). Such replacement terms will, in line with subsection (2)(c), become contractual terms. Collective agreements can also exclude some rights but not others (e.g. they could exclude the right to guaranteed hours under Chapter 2 but not the rights to reasonable notice and payments for short notice under Chapters 3 and 4) but this should be clear in the collective agreement;
under subsection (2)(c), the replacement terms must be incorporated into the worker’s contract. This ensures that the terms are enforceable by workers by way of a breach of contract claim; and
under subsection (2)(d), the employer must notify the worker in writing of the incorporation and effect of those terms.
Part 1: Employment Rights Zero hours workers, etc New Section 27BW