federal IR changes from 1 july 2009
Michele Jones, Industrial Relations Manager
The Fair Work Bill has the potential to significantly change workplace practices. In particular, how businesses should deal with poor performers and redundancies in the future. Prior to 1 July 2009, poor performance could be a factor in the dismissal of an employee without a lengthy consultation or improvement procedure, as long as there was a genuine operational requirement behind the decision as well (which rendered the dismissal a redundancy).
With the new Bill changes, the “operational requirement” element will no longer be able to be used without following the strict procedural fairness process outlined for redundancies. Furthermore, severance payments will be embedded in the National Employment Standards and will now apply to non-award employees, potentially adding up to 3 months additional pay to the cost of a redundancy for such staff.
All this adds up to a more rigorous and costly process for dealing with poor performance and redundancy selection, even for the small employers who will be subject to the simpler Fair Dismissal Code. Casual employees (temps and contractors) will also be covered by the new laws after six months in regular employment.
With these changes, sound recruitment, selection and HR practices will be more critical than ever, as such practices focus on prevention and risk minimisation rather than “curing” the problem once it has occurred. In the recruitment industry clients and recruiters will need to work together cooperatively to make the most of the new IR framework and ensure compliance.
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