Click here to view information from Federal AMA about WorkChoices.
On 25 November 2008 the Labor Government tabled the Fair Work Bill (2008) (the Bill) into parliament. We expect the Bill to pass through the senate with minor adjustments. The proposed Legislation will replace the existing Workplace Relations Act 1996 and will signify a major departure from the current provisions. These changes will occur on 1 July 1009 and 1 January 2010. This will have significant implications for those of you in private practices run by an incorporated company where considerable changes will have to occur in a short time frame.
If unsure if these changes will have implications for your practice please contact the Workplace Relations and Legal Department on (07) 3872 2222.
The first set of changes are to occur on 1 July 2009. This includes amendments to unfair dismissal provisions and bargaining frameworks. The changes will see the undertaking of good faith bargaining and compulsory bargaining for the low paid. It is critical that you know and understand what responsibilities your practice will have from this date.
1 JULY 2009
Currently employees who are dismissed in workplaces with less than 100 employees are unable to lodge an unfair dismissal claim. Signifying a substantial change, the new unfair dismissal system will provide special arrangements which will apply to small businesses. Employees employed in a small business with fewer than 15 employees will not be able to lodge an unfair dismissal before completing 12 months of service. It is also proposed the government will provide small businesses with a simple six-paragraph Fair Dismissal Code which will assist employers in ensuring a dismissal is not unfair. This will mean there will be additional regulatory processes for business to follow and adhere to during the termination process. These changes will extend to redundancies where employers will be required to follow consultation procedures and extended regulations.
Collective bargaining
The new bargaining framework will include good faith bargaining, protected action and arbitration where agreements cannot be reached. There will also be provisions for multi-employer bargaining for the low paid with the potential for arbitrated outcomes.
1 JANUARY 2010
The predominant changes however, will occur on 1 January 2010 and will include the commencement of the new governing body – Fair Work Australia and the new Safety Net of Employment Conditions, which include the National Employment Standard and the start of the Modernised Awards.
Fair Work Australia
Currently employers and employees are required, where necessary, to consult with up to seven agencies. However the new institution, Fair Work Australia will be a ‘one stop shop’, which will replace the:
· Australian Fair Pay Commission
· Australian Fair Pay Commission Secretariat
· Australian Industrial relations Commission
· Australian Industrial registry
· Workplace Authority
The institution aims to create a fair, simple and modern workplace relations system, easily accessible to the public. It will have the power to vary awards, determine the minimum wage, approve agreements, resolve unfair dismissal claims, make orders and assist employees and employers in resolving workplace disputes.
Safety Net of employment conditions
The safety net will comprise the 10 National Employment Standards (NES) and new modernised awards. The NES will provide the minimum standards for employees, including:
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Maximum weekly hours of work
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The right to rquest flexible working arrangments
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Parental leave and related entitlements
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Annual leave
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Personal/Carer's leave and Compassionate leave
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Community service leave
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Long Service leave
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Public holidays
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Notice of termination and redundancy pay
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Provision of Fair Work Information Statement
Of these conditions the primary changes occur in the maximum hours, right to request flexible work arrangements, parental leave entitlements and community services provisions.
Employers will need to be conscious of the new terms defining reasonable additional hours, as this is a term commonly utilised in managerial staff contracts.
Preparation will be necessary for employers to understand their obligations in providing flexible working arrangements for employees who are carers of below school aged children. Additionally, the proposed Paternity Leave provisions will grant employees the opportunity for up to 24 months unpaid maternity leave, which could have a substantial impact on business.
Modern Awards
Currently, the Federal Government is in the process of simplifying thousands of awards and will create awards that will be industry or occupation based. The modern awards build on the NES and may include up to 10 further minimum conditions. The Clerical Award has now been completed and the Nurses Award is due for completion in April.
Employers must be aware that the modern awards may cover employees not necessarily covered by the previous awards such as practice managers with the right to hire and fire staff. This will see the need for employment contracts to be re-drafted before 1 January 2010.
Australian Workplace Agreements
Under the new system, Australian Workplace Agreements (AWAs) will continue to exist until their nominal expiry date; five years from lodgement at the latest. After the expiry of the AWAs any employees on the agreements will need to be transferred to the new system of modernised awards or if above the wage threshold to new agreements based on the National Employment Standard.
Call us today on (07) 3872 2222.
Seminars
With the new changes coming into affect on 1 July 2009 and 1 January 2010, AMA Queensland will be conducting seminars on the changes. Click here to find out more.
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