WorkChoices for Everyone

A new era of workplace relations A new era of workplace relations National Coverage National Coverage Aims and Objectives of WorkChoices Aims and Objectives of WorkChoices WorkChoices

Subjects to be covered The Australian Fair Pay Commission The Australian Fair Pay Commission The Australian Fair Pay and Conditions Standard The Australian Fair Pay and Conditions Standard The Award System The Award System Workplace Agreements Workplace Agreements Employer Compliance Employer Compliance Industrial Relation Issues Industrial Relation Issues Business Considerations Business Considerations

The Australian Fair Pay Commission (AFPC) Statutory body established to set and adjust: Statutory body established to set and adjust: -federal minimum wages (FMW) for each hour worked; - award classification rates of pay; - special FMW for juniors, trainees/apprentices, employees with disabilities; & - casual loadings Previously undertaken by the AIRC in an adversarial nature Previously undertaken by the AIRC in an adversarial nature

The Australian Fair Pay Commission (AFPC) First decision delivered 26 October 2006 First decision delivered 26 October 2006 Effective 1 December 2006 Effective 1 December 2006 Decision has 3 elements: Decision has 3 elements: 1. $27.36 per week increase in Federal Minimum Wage. 2. $27.36 per week increase in all Pay Scales up to and including $700 per week. 3. $22.04 per week increase in all Pay Scales above $700 per week.

The Australian Fair Pay Commission (AFPC) Pay Scales derived from pre-reform Awards and NAPSAs Pay Scales derived from pre-reform Awards and NAPSAs One pay scale for each Award One pay scale for each Award If not covered by a Pay Scale, covered by FMW If not covered by a Pay Scale, covered by FMW

The Australian Fair Pay Commission (AFPC) No employee can be paid below the standard FMW UNLESS the FMW does not apply to them. No employee can be paid below the standard FMW UNLESS the FMW does not apply to them. The FMW does not apply to: The FMW does not apply to: -piece rate workers; -Employees who may be covered by a SPECIAL FMW: Juniors Juniors Apprentices Apprentices Employees with a disability Employees with a disability

Australian Fair Pay and Conditions Standard (AFPCS) Five basic/minimum entitlements: Five basic/minimum entitlements: Minimum Wage – currently $12.75 ($13.47 from 1 Dec 2006) per hour for an adult if not under an Australian Pay & Classification Scale (APCS) Minimum Wage – currently $12.75 ($13.47 from 1 Dec 2006) per hour for an adult if not under an Australian Pay & Classification Scale (APCS) Ordinary Hours of Work (38 hours per week plus reasonable additional hours) Ordinary Hours of Work (38 hours per week plus reasonable additional hours) Annual Leave – up to 4 weeks (up to 5 weeks for continuous shift workers) Annual Leave – up to 4 weeks (up to 5 weeks for continuous shift workers)

Australian Fair Pay and Conditions Standard cont. Personal Leave – up to 10 days per year for sick and carer’s leave Personal Leave – up to 10 days per year for sick and carer’s leave - Two days paid compassionate leave on each occasion a family or household member is seriously ill and dying, or to attend a funeral Parental Leave – 52 weeks unpaid leave Parental Leave – 52 weeks unpaid leave

Award Rationalisation and Simplification Award Review Taskforce – examine wage and classification structures in all pre-reform Federal and state awards Award Review Taskforce – examine wage and classification structures in all pre-reform Federal and state awards The purpose is to rationalise these awards to a simplified structure of wages and classifications The purpose is to rationalise these awards to a simplified structure of wages and classifications

Workplace Agreements Various types: AWA’s AWA’s Employee Collective Agreement Employee Collective Agreement Union Collective Agreement Union Collective Agreement Employer Greenfield Agreement Employer Greenfield Agreement Union Greenfield Agreement Union Greenfield Agreement Multiple Business Agreement Multiple Business Agreement

Workplace Agreements Workplace Agreements All agreements now lodged with the Office of Employment Advocate (OEA) All agreements now lodged with the Office of Employment Advocate (OEA) All agreements must meet the Australian Fair Pay and Condition Standard All agreements must meet the Australian Fair Pay and Condition Standard Nominal 5 year lifespan Nominal 5 year lifespan Agreements can override Awards Agreements can override Awards

Workplace Agreements Required content – protected award conditions, including Public Holidays, Rest breaks, incentives and bonuses, annual leave loading, allowances, penalty rates. Required content – protected award conditions, including Public Holidays, Rest breaks, incentives and bonuses, annual leave loading, allowances, penalty rates. Prohibited content – examples include prohibiting entering AWA’s, union entry and industrial action, union fee deductions etc Prohibited content – examples include prohibiting entering AWA’s, union entry and industrial action, union fee deductions etc

The Award system AFPCS overrides some award terms AFPCS overrides some award terms Allowable award matters – include ordinary time earnings, span of hours, annual leave loading, allowances, public holidays, redundancy, penalty rates Allowable award matters – include ordinary time earnings, span of hours, annual leave loading, allowances, public holidays, redundancy, penalty rates Non-allowable award matters – include union right of entry, union picnic days, casual conversion, part- time min. hours, trade union training leave Non-allowable award matters – include union right of entry, union picnic days, casual conversion, part- time min. hours, trade union training leave

The Award system State awards: if business is incorporated will still apply and are called Notional Agreements Preserving State Awards (NAPSA) if business is incorporated will still apply and are called Notional Agreements Preserving State Awards (NAPSA) State laws still apply for leave, notice of termination and redundancy payments State laws still apply for leave, notice of termination and redundancy payments Prohibited content rules apply Prohibited content rules apply NAPSA displaced if Federal agreement is entered NAPSA displaced if Federal agreement is entered

Industrial Relations Right of Entry – permit holders, alleged breaches, OHS or discussions Right of Entry – permit holders, alleged breaches, OHS or discussions Industrial Action - Protected and Unprotected Industrial Action - Protected and Unprotected AIRC has jurisdiction over industrial disputation AIRC has jurisdiction over industrial disputation

Termination 100 or fewer employees exempted from unfair dismissal laws 100 or fewer employees exempted from unfair dismissal laws All employees must complete 6 month qualifying period before making claim All employees must complete 6 month qualifying period before making claim Termination based on genuine “operational requirements” is no longer a basis for an unfair dismissal Termination based on genuine “operational requirements” is no longer a basis for an unfair dismissal

Termination Businesses with fewer than 15 employees are exempted from making severance payments* when redundancy occurs Businesses with fewer than 15 employees are exempted from making severance payments* when redundancy occurs *Notice based on length of service is still required. Unlawful termination continues to operate Unlawful termination continues to operate Common law and Trade Practices Act based actions continue to operate Common law and Trade Practices Act based actions continue to operate

Employer Compliance Detailed requirements for record keeping Detailed requirements for record keeping Leave accruals and payments Leave accruals and payments Procedures must be in place by 26 March 2007 Procedures must be in place by 26 March 2007 Office of Workplace Services (OWS) can prosecute for failing to keep appropriate records Office of Workplace Services (OWS) can prosecute for failing to keep appropriate records

Employer Compliance Employee StatusRecord 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 cont. Employee StatusRecord 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 Business Review and consider the following: Corporate structure and practices Corporate structure and practices Award coverage Award coverage Existing workplace agreements Existing workplace agreements Existing common law contracts Existing common law contracts Workplace policies Workplace policies Do they comply with the new laws? Do they comply with the new laws?

Choices Consider what potential benefits and opportunities can be derived for both business and employee Consider what potential benefits and opportunities can be derived for both business and employee What next? Plan ahead and move toward compliance What next? Plan ahead and move toward compliance

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