FAIR WORK ACT AND WHAT DOES IT MEAN?

Who is covered?

Trading, financial and foreign corporations and all employers in Victoria, ACT and NT. 

At this stage Tasmania has not ceded its powers however this is an option they have.

You are not covered by these changes if you are in the State Government, Partnerships, sole traders and not trading entities.  Some trusts are also not covered by this Act.

What are the main changes?

• FWA is established as Flexible Work Arrangements.  

• Unfair dismissal -employees must have completed  the relevant qualifying period.  Small business is   defined as one with fewer than 15 full time equivalents.  

• A small business code is implemented that must be complied with in terminating employees.

• Casual employees may have access to unfair dismissals.

Rights of entry to -

• Unions may enter a work site regardless of whether the employees are covered by a union Award or agreement.
• 10 National employment standards commence.
• Modern Awards will be introduced.
• Good Faith Bargaining will be introduced and managed by FWA.
• Agreements will not have any distinction between union and non-union.  Agreements must all be approved by FWA prior to commencement.
• Employees will be able to take protected industrial action during collective bargaining.
• Transfer of Business rules change.
• Flexible work arrangements for employees with school aged children or carers of disabled children.

Agreement Making -

• Single enterprises will be those engaged in a joint venture or common enterprise, related corporate entities or specified in a  single interest employer authorisation.
• Multi-enterprises are 2 or more employers who are not single interest employers but may be a voluntary grouping or subject of a low-paid  authorisation.
• Permissible content must involve a relationship between the employer and employees or be a matter      between the employer and the unions covered by the agreement and the operation of the agreement.
• Agreements cannot discriminate against an employee or be inconsistent with:  rights of entry, OHS, freedom of association or general protections.

WHAT ARE BUSINESSES DOING?

Currently owners are looking at how they can manage their business while still controlling quality and cost. 

Some are:-

• Reviewing their organizational structure.
• Offering employees  access to annual leave,  long service leave or leave without pay as options.
• Reducing work hours with appropriate notice.
• Job sharing
• Training employees out of their current role and into their career choice.

* Take care that you do not make agreements with employee’s that are outside legal requirements*

For further information or assistance contact the Centre for Tasmanian Industry.

WHAT DATES ARE IMPORTANT?

• 1 July 2009 will be the start of Fair Work Australia and the implementation date for the majority of the new systems
• After 31 December 2009 no new ITEA'S will be allowed
• 1 January 2010 will commence the introduction of the National Employment Standards and Modern Awards.
• July 2011 will commence changes to the unfair dismissal rules regarding how to calculate 15 employees.