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Major Recent Developments

(1) The new Government’s industrial relations policies

 

The ALP document “Forward with Fairness” contains information about the key aspects of the new Government’s industrial relations policies – this document can be accessed at http://www.alp.org.au/media/1107/msir150.php.

 

 

(2) New Legislation – The First Stage

 

On 13 February 2008, the Government introduced the first stage of its planned legislation to give effect to its industrial relations policies. The Workplace Relations Amendment (Transition to Forward with Fairness) Bill 2008 may be accessed at www.workplace.gov.au. The Government has indicated that its intention is that the Bill will commence operation by late March 2008. However, it should be noted that the Bill has been referred to a Senate Committee for review and report back by 17 March 2008.

 

The key provisions of this Bill are:

 

AWAs

 

No new AWAs will be able to be made after the commencement of the legislation.

 

Existing AWAs made prior to the commencement of the legislation will continue in force until their nominal expiry date, unless they are terminated earlier in accordance with the legislation. However, it will not be possible to vary an existing AWA after the commencement of the legislation.

 

ITEAs

 

Individual Transitional Employment Agreements (ITEAs) may be made by an employer where that employer had at least one employee under an AWA on 1 December 2007. Such an employer may make an ITEA with any new employee or with an existing employee who is a party to an AWA or similar industrial instrument with the employer. All ITEA’s must pass the new no disadvantage test and must have a nominal expiry date of no later than 31 December 2009.

 

No disadvantage test

 

A no disadvantage test will replace the current fairness test. The no disadvantage test will apply to ITEA’s and to collective agreements made after the commencement of the legislation, and to variations of all current and new agreements. The primary basis for applying the no disadvantage test to an ITEA will be the terms of any applicable collective agreement and the Australian Fair Pay and Conditions Standard. The primary basis for applying the no disadvantage test to a collective agreement will be the terms of any applicable award and the Australian Fair Pay and Conditions Standard.   

 

Commencement of Agreements

 

New employer and union collective agreements or an ITEA for an existing employee will not come into effect until 7 days after the Workplace Authority has notified the parties that the agreement has passed the no disadvantage test.

 

Workplace relations fact sheet

 

The requirements for an employer to provide employees with a workplace relations fact sheet will cease from the commencement of the legislation.

 

Effect of termination of agreements

 

New provisions to ensure that where an AWA, ITEA or a collective agreement is terminated, the employees will be entitled to the provisions of any applicable workplace agreement or award.

 

Award modernisation

 

New provisions are included for the award modernisation process to be undertaken by the AIRC. There are also provisions concerning the general structure and content of modern awards, including mandatory content and terms that must not be included in modern awards. The modern awards are to be made in a manner that should supplement the proposed 10 National Employment Standards. The Government has requested the AIRC to complete the award modernisation process by 31 December 2009.

 

Expiry date for NAPSAs

 

The expiry date for Notional Agreements preserving State awards (NAPSA’s) will be extended to 31 December 2009.

 

 

(3) Proposed 10 National Employment Standards

 

The Government has released a discussion paper on its proposed 10 National Employment Standards (NES).

 

The proposed NES would deal with the following matters:

 

  • Maximum weekly hours of work
  • Request for flexible working arrangements
  • Parental leave (and related entitlements)
  • Annual leave
  • Personal/carer’s leave and compassionate leave
  • Community service leave
  • Long service leave
  • Public holidays
  • Notice of termination and redundancy pay
  • Fair Work information statement.

 

Details of the proposed NES are set out in the discussion paper, which can be accessed at www.workplace.gov.au. The NES are to be finalised by 30 June 2008 and will be included in the second stage of the Government’s legislation to give effect to its policies. The Government’s intention is that the proposed NES will commence operation on 1 January 2010. The NES would then apply to all employment under the federal system at that time. The NES would operate as a federal legislative minimum safety net. As such the NES would not be able to be excluded or modified to the detriment of an employee by a contract of employment, award or workplace agreement. 

 

 

(4) New Legislation – The Second Stage

 

Under a second stage, the Government will introduce a comprehensive Bill to implement the other changes that are contained in the “Forward With Fairness” document, including the establishment of a uniform national industrial relations system for the private sector, the establishment of Fair Work Australia, the proposed NES and the proposed changes to the unfair dismissal provisions. The Government has indicated that it expects to have an exposure draft of this Bill available later in 2008. The Government’s intention is that this second stage of legislation will commence operation on 1 January 2010.

 

 

IMPLICATIONS FOR EMPLOYERS AND EMPLOYEES

 

It should be noted that the first stage of the Government’s legislation is limited in its scope. It  does not attempt to seek to implement the major new federal industrial relations framework that was proposed in the ALP’s industrial relations document  “Forward with Fairness”. For example, the Transition Bill does not deal with issues such the establishment of the Fair Work Australia that will replace the AIRC, the Workplace Authority, the Fair Pay Commission and the Workplace Ombudsman. Nor does the Transition Bill provide for the proposed NES or for  changes to the current unfair dismissal provisions. These matters, and others, will be the subject of the second stage of the Government’s proposed workplace relations legislative changes.

 

Until legislative amendments contained in the Workplace Relations Amendment (Transition to Forward with Fairness) Bill 2008 are approved by the Parliament, the current provisions of the Workplace Relations Act 1996 and Workplace Relations Regulations will continue to apply. A summary of these current provisions is provided in the next section of this website - Key aspects of the System).

 

DISCLAIMER

This website contains general information only about workplace relations legislation and arrangements. The material on this website is not legal advice.

Before users take any action on any information contained on this website, they should seek appropriate professional advice relevant to their particular circumstances.

 

Last Updated: February 29, 2008