WorkChoices for Everyone. A new era of workplace relations A new era of workplace relations National...
Transcript of WorkChoices for Everyone. A new era of workplace relations A new era of workplace relations National...
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