Transcript EMPLOYEE RELATIONS

WorkChoices
for Everyone
WorkChoices
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A new era of workplace relations
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National Coverage
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Aims and Objectives of WorkChoices
Subjects to be covered
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The Australian Fair Pay Commission
The Australian Fair Pay and Conditions
Standard
The Award System
Workplace Agreements
Employer Compliance
Industrial Relation Issues
Business Considerations
The Australian Fair Pay
Commission (AFPC)
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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
The Australian Fair Pay
Commission (AFPC)
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First decision delivered 26 October 2006
Effective 1 December 2006
Decision has 3 elements:
$27.36 per week increase in Federal Minimum
Wage.
$27.36 per week increase in all Pay Scales up to
and including $700 per week.
$22.04 per week increase in all Pay Scales above
$700 per week.
The Australian Fair Pay
Commission (AFPC)
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Pay Scales derived from pre-reform
Awards and NAPSAs
One pay scale for each Award
If not covered by a Pay Scale, covered
by FMW
The Australian Fair Pay
Commission (AFPC)
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No employee can be paid below the
standard FMW UNLESS the FMW does not
apply to them.
The FMW does not apply to:
-piece rate workers;
-Employees who may be covered by a SPECIAL
FMW:
 Juniors
 Apprentices
 Employees with a disability
Australian Fair Pay and
Conditions Standard
(AFPCS)
Five basic/minimum entitlements:
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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)
Annual Leave – up to 4 weeks (up to 5 weeks for
continuous shift workers)
Australian Fair Pay and
Conditions Standard cont.
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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
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Parental Leave – 52 weeks unpaid leave
Award Rationalisation
and Simplification
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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
Workplace Agreements
Various types:
 AWA’s
 Employee Collective Agreement
 Union Collective Agreement
 Employer Greenfield Agreement
 Union Greenfield Agreement
 Multiple Business Agreement
Workplace Agreements
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All agreements now lodged with the Office of
Employment Advocate (OEA)
All agreements must meet the Australian Fair Pay
and Condition Standard
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Nominal 5 year lifespan
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Agreements can override Awards
Workplace Agreements
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Required content – protected award
conditions, including Public Holidays, Rest
breaks, incentives and bonuses, annual
leave loading, allowances, penalty rates.
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Prohibited content – examples include
prohibiting entering AWA’s, union entry and
industrial action, union fee deductions etc
The Award system
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AFPCS overrides some award terms
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, parttime 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)
 State laws still apply for leave, notice of termination
and redundancy payments
 Prohibited content rules apply
 NAPSA displaced if Federal agreement is entered
Industrial Relations
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Right of Entry – permit holders, alleged
breaches, OHS or discussions
Industrial Action - Protected and
Unprotected
AIRC has jurisdiction over industrial
disputation
Termination
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100 or fewer employees exempted from
unfair dismissal laws
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
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Businesses with fewer than 15 employees
are exempted from making severance
payments* when redundancy occurs
*Notice based on length of service is still required.
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Unlawful termination continues to operate
Common law and Trade Practices Act based
actions continue to operate
Employer Compliance
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Detailed requirements for record keeping
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Leave accruals and payments
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Procedures must be in place by 26 March 2007
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Office of Workplace Services (OWS) can prosecute
for failing to keep appropriate records
Employer Compliance
Employee Status
Record Keeping Requirements
Employee has provisions for Starting and finishing times and
overtime and is paid an annual total hours worked.
salary of less than $55,000.
Employee has provisions for Starting and finishing times each
overtime and is paid an annual day.
salary of $55,000 or more.
Employer Compliance cont.
Employee Status
Record Keeping Requirements
Employee has no entitlement to Total hours worked each day.
overtime and is paid an annual
salary of less than $55,000.
Employee has no entitlement to No record keeping requirements
overtime and is paid an annual for starting and finishing times or
salary of $55,000 or more.
hours worked.
Considerations for
Business
Review and consider the following:
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Corporate structure and practices
Award coverage
Existing workplace agreements
Existing common law contracts
Workplace policies
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Do they comply with the new laws?
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Choices
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Consider what potential benefits and
opportunities can be derived for both
business and employee
What next? Plan ahead and move
toward compliance
Further assistance
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www.printnet.com.au
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www.workchoices.gov.au
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www.oea.gov.au
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www.ows.gov.au