fair work laws update
Michele Jones, Employee Relations Manager

Overview of main changes occurring from 1 July 2009

Unfair dismissal laws will apply to a wider number of employers and employees than was previously the case. This is due to;

• Redundancy decisions will have to demonstrate fairness in selection and consultation otherwise it could be an unfair dismissal.
• The removal of the exemption from unfair dismissal for employers with under 100 employees
• Casual employees (i.e. temps and contractors) will be able to lodge an unfair dismissal claim if have regular employment for 6 months or more (previously was 12 months service).
• Broadening the scope of the type of circumstances that would constitute and ‘unlawful dismissal’ for discriminatory reasons.

Consolidation of IR authorities – the Australian Industrial Relations Commission, the Workplace Authority, the Fair Pay Commission and the Workplace Ombudsman will not longer operate from 1 July 2009. These institutions will be replaced by Fair Work Australia (awards, agreements, minimum conditions, industrial action, unfair dismissals) and the Office of the Fair Work Ombudsman (inspection, investigation, compliance, prosecution).

No new statutory individual agreements i.e. ITEAs . The emphasis is on collective agreements to customise any conditions that are different to the award. The requirement for “bargaining in good faith” has been introduced into the IR system for the first time and has the potential to add to the complexity of negotiating agreements.

Overview of main changes occurring from 1 January 2010

There will be an increase to the number of statutory minimum conditions of employment applicable to all employees under the federal system, known as National Employment Standards (NES). Following are just some of the changes:

• The extension of the statutory right to severance pay in a redundancy to non-award employees
• The right for parents of children under school age or with a disability to request more flexible working arrangements
• Annual leave will accrue for each hour worked (currently accrued monthly). Sick leave will be able to be taken while on annual leave.
• Greater unpaid parental leave – up to 2 years – the partner can apply for a full year so more males are likely take up leave
• Written notice of termination must be provided on last day

Award modernisation - There will be fewer awards (about 100, down from 3,000), with national industry awards covering all states. Modern awards can be contracted out of by a written agreement within 14 days of hire, provided the employee earns more than $100,000 base salary. There will be an individual flexibility clause in awards to agree on certain changes to working hours and penalty rates, among other things, provided the employee is better off overall.