WorkChoices

for Everyone

A new era of workplace relationsA new era of workplace relations

National CoverageNational Coverage

Aims and Objectives of Aims and Objectives of WorkChoicesWorkChoices

WorkChoicesWorkChoices

Subjects to be coveredSubjects to be covered

The Australian Fair Pay CommissionThe Australian Fair Pay Commission The Australian Fair Pay and Conditions The Australian Fair Pay and Conditions

StandardStandard The Award SystemThe Award System Workplace AgreementsWorkplace Agreements Employer ComplianceEmployer Compliance Industrial Relation IssuesIndustrial Relation Issues Business ConsiderationsBusiness Considerations

The Australian Fair Pay The Australian Fair Pay Commission (AFPC)Commission (AFPC)

Statutory body established to set and adjust:Statutory body established to set and adjust:-federal minimum wages (FMW) for each -federal minimum wages (FMW) for each hour worked;hour worked;- award classification rates of pay; - award classification rates of pay; - special FMW for juniors, - special FMW for juniors, trainees/apprentices, employees with trainees/apprentices, employees with disabilities; &disabilities; &- casual loadings- casual loadings

Previously undertaken by the AIRC in an Previously undertaken by the AIRC in an adversarial natureadversarial nature

The Australian Fair Pay The Australian Fair Pay Commission (AFPC)Commission (AFPC)

First decision delivered 26 October First decision delivered 26 October 20062006

Effective 1 December 2006Effective 1 December 2006 Decision has 3 elements:Decision has 3 elements:1.1. $27.36 per week increase in Federal $27.36 per week increase in Federal

Minimum Wage.Minimum Wage.2.2. $27.36 per week increase in all Pay Scales $27.36 per week increase in all Pay Scales

up to and including $700 per week.up to and including $700 per week.3.3. $22.04 per week increase in all Pay Scales $22.04 per week increase in all Pay Scales

above $700 per week.above $700 per week.

The Australian Fair Pay The Australian Fair Pay Commission (AFPC)Commission (AFPC)

Pay Scales derived from pre-Pay Scales derived from pre-reform Awards and NAPSAsreform Awards and NAPSAs

One pay scale for each AwardOne pay scale for each Award If not covered by a Pay Scale, If not covered by a Pay Scale,

covered by FMWcovered by FMW

The Australian Fair Pay The Australian Fair Pay Commission (AFPC)Commission (AFPC)

No employee can be paid below the No employee can be paid below the standard FMW UNLESS the FMW does standard FMW UNLESS the FMW does not apply to them. not apply to them.

The FMW does not apply to:The FMW does not apply to:-piece rate workers;-piece rate workers;

-Employees who may be covered by a SPECIAL -Employees who may be covered by a SPECIAL FMW:FMW:

JuniorsJuniors Apprentices Apprentices Employees with a disabilityEmployees with a disability

Australian Fair Pay Australian Fair Pay and Conditions and Conditions

Standard (AFPCS)Standard (AFPCS)

Five basic/minimum entitlements:Five basic/minimum entitlements:

Minimum Wage – currently $12.75 ($13.47 Minimum Wage – currently $12.75 ($13.47 from 1 Dec 2006) per hour for an adult if not from 1 Dec 2006) per hour for an adult if not under an Australian Pay & Classification Scale under an Australian Pay & Classification Scale (APCS)(APCS)

Ordinary Hours of Work (38 hours per week Ordinary Hours of Work (38 hours per week plus reasonable additional hours)plus reasonable additional hours)

Annual Leave – up to 4 weeks (up to 5 weeks Annual Leave – up to 4 weeks (up to 5 weeks for continuous shift workers)for continuous shift workers)

Australian Fair Pay and Australian Fair Pay and Conditions Standard Conditions Standard

cont.cont.

Personal Leave – Personal Leave – up to 10 days per year up to 10 days per year for sick and carer’s leavefor sick and carer’s leave

- Two days paid - Two days paid compassionate leave on each occasion a compassionate leave on each occasion a family or household member is seriously ill family or household member is seriously ill and dying, or to attend a funeraland dying, or to attend a funeral

Parental Leave – 52 weeks unpaid Parental Leave – 52 weeks unpaid leaveleave

Award Rationalisation Award Rationalisation and Simplificationand Simplification

Award Review Taskforce – examine Award Review Taskforce – examine wage and classification structures wage and classification structures in all pre-reform Federal and state in all pre-reform Federal and state awardsawards

The purpose is to rationalise these The purpose is to rationalise these awards to a simplified structure of awards to a simplified structure of wages and classificationswages and classifications

Workplace AgreementsWorkplace Agreements

Various types:Various types: AWA’sAWA’s Employee Collective AgreementEmployee Collective Agreement Union Collective AgreementUnion Collective Agreement Employer Greenfield AgreementEmployer Greenfield Agreement Union Greenfield AgreementUnion Greenfield Agreement Multiple Business AgreementMultiple Business Agreement

Workplace AgreementsWorkplace Agreements

All agreements now lodged with the Office of All agreements now lodged with the Office of Employment Advocate (OEA)Employment Advocate (OEA)

All agreements must meet the Australian Fair All agreements must meet the Australian Fair Pay and Condition Standard Pay and Condition Standard

Nominal 5 year lifespanNominal 5 year lifespan

Agreements can override AwardsAgreements can override Awards

Workplace AgreementsWorkplace Agreements

Required content – Required content – protected award protected award conditions, including Public Holidays, Rest conditions, including Public Holidays, Rest breaks, incentives and bonuses, annual breaks, incentives and bonuses, annual leave loading, allowances, penalty rates.leave loading, allowances, penalty rates.

Prohibited content – Prohibited content – examples include examples include prohibiting entering AWA’s, union entry prohibiting entering AWA’s, union entry and industrial action, union fee deductions and industrial action, union fee deductions etcetc

The Award systemThe Award system

AFPCS overrides some award termsAFPCS overrides some award terms Allowable award matters – include ordinary Allowable award matters – include ordinary

time earnings, span of hours, annual leave time earnings, span of hours, annual leave loading, allowances, public holidays, loading, allowances, public holidays, redundancy, penalty ratesredundancy, penalty rates

Non-allowable award matters – include union Non-allowable award matters – include union right of entry, union picnic days, casual right of entry, union picnic days, casual conversion, part-time min. hours, trade union conversion, part-time min. hours, trade union training leavetraining leave

The Award systemThe Award system

State awardsState awards:: if business is incorporated will still apply and if business is incorporated will still apply and

are called Notional Agreements Preserving are called Notional Agreements Preserving State Awards (NAPSA)State Awards (NAPSA)

State laws still apply for leave, notice of State laws still apply for leave, notice of termination and redundancy paymentstermination and redundancy payments

Prohibited content rules applyProhibited content rules apply NAPSA displaced if Federal agreement is NAPSA displaced if Federal agreement is

enteredentered

Industrial RelationsIndustrial Relations

Right of Entry – permit holders, alleged Right of Entry – permit holders, alleged breaches, OHS or discussionsbreaches, OHS or discussions

Industrial Action - Protected and Industrial Action - Protected and UnprotectedUnprotected

AIRC has jurisdiction over industrial AIRC has jurisdiction over industrial disputationdisputation

TerminationTermination

100 or fewer employees exempted 100 or fewer employees exempted from unfair dismissal lawsfrom unfair dismissal laws

All employees must complete 6 month All employees must complete 6 month qualifying period before making claimqualifying period before making claim

Termination based on genuine Termination based on genuine “operational requirements” is no “operational requirements” is no longer a basis for an unfair dismissal longer a basis for an unfair dismissal

TerminationTermination

Businesses with fewer than 15 employees Businesses with fewer than 15 employees are exempted from making severance are exempted from making severance payments* when redundancy occurspayments* when redundancy occurs*Notice based on length of service is still *Notice based on length of service is still required.required.

Unlawful termination continues to operateUnlawful termination continues to operate

Common law and Trade Practices Act Common law and Trade Practices Act based actions continue to operatebased actions continue to operate

Employer ComplianceEmployer Compliance

Detailed requirements for record keepingDetailed requirements for record keeping

Leave accruals and paymentsLeave accruals and payments

Procedures must be in place by 26 March Procedures must be in place by 26 March 20072007

Office of Workplace Services (OWS) can Office of Workplace Services (OWS) can prosecute for failing to keep appropriate prosecute for failing to keep appropriate recordsrecords

Employer ComplianceEmployer Compliance

Employee Status Record Keeping Requirements

Employee has provisions for overtime and is paid an annual salary of less than $55,000.

Starting and finishing times and total hours worked.

Employee has provisions for overtime and is paid an annual salary of $55,000 or more.

Starting and finishing times each day.

Employer Compliance Employer Compliance contcont..

Employee Status Record Keeping Requirements

Employee has no entitlement to overtime and is paid an annual salary of less than $55,000.

Total hours worked each day.

Employee has no entitlement to overtime and is paid an annual salary of $55,000 or more.

No record keeping requirements for starting and finishing times or hours worked.

Considerations for Considerations for BusinessBusiness

Review and consider the following:Review and consider the following: Corporate structure and practicesCorporate structure and practices Award coverageAward coverage Existing workplace agreementsExisting workplace agreements Existing common law contractsExisting common law contracts Workplace policiesWorkplace policies

Do they comply with the new laws?Do they comply with the new laws?

ChoicesChoices

Consider what potential benefits Consider what potential benefits and opportunities can be derived and opportunities can be derived for both business and employeefor both business and employee

What next? Plan ahead and move What next? Plan ahead and move toward compliancetoward compliance

Further assistanceFurther assistance

www.printnet.com.auwww.printnet.com.au

www.workchoices.gov.auwww.workchoices.gov.au

www.oea.gov.auwww.oea.gov.au

www.ows.gov.auwww.ows.gov.au