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Employment Law - The New Fair Work Act - New National Employment Standards (2)

Date: August 14, 2009

Authors: Michael Pickering B.A., LL.B. (Hons.), LL.M., M. A.

Welcome to our 5 Part series on The New Fair Work Act. We hope you find the series interesting and informative. You can find the rest of the series at the links below

 


 

Under the Fair Work Act, the new National Employment Standards provide a new national safety net, irrespective of whether or not businesses enter into a Workplace Agreement.

The key difference, therefore, is that unlike Work Choices, Workplace Agreements do not displace the safety net. The National Employment Standards also apply to employees earning less than $100,000.00 per year in respect of whom a collective agreement cannot be made. 

The new awards created as part of the award modernisation process will commence on 1 January 2010. The number of allowable award matters will be reduced from 15 to 10 which will now operate as conditions of employment. Where employees earning more than $100,000.00 were employed under award conditions prior to 1 January 2010, those entitlements will continue even after the new system commences in 2010. However, such employees will be free to negotiate and agree with their employer their future pay and conditions without reference to awards.

The Fair Work Act provides there will be regular reviews of awards every four years commencing in 2013. The matters that may now be included in awards are as follows:

  • Minimum wages
  • Categories of employment
  • Hours of work
  • Overtime rates
  • Penalty rates
  • Annualised salary arrangements
  • Allowances
  • Leave
  • Leave loadings
  • Superannuation and consultative provisions
  • Dispute settlement procedures

The new National Employment Standards, to come into operation on 1 January 2010, will apply to all employees on a “no detriment basis” and will be as follows:

  1. Maximum weekly hours of 38 hours per week plus a request for reasonable additional hours but the right to refuse reasonable overtime.
  2. Parental leave which shall be an additional 12 months unpaid leave.
  3. Flexible work for parents and the guaranteed right for parents to request flexible work arrangements until their child reaches school age (whereby an employer can refuse this on reasonable business grounds).
  4. Annual leave.
  5. Personal leave.
  6. Community service leave for prescribed community activities.
  7. Long service leave, currently State-based.
  8. Public holidays which shall incorporate State-based gazetted public holidays such as (in Victoria) Australia Day, Labour Day, Good Friday, Easter Monday, Queen’s Birthday, Melbourne Cup Day, Christmas Day, Boxing Day and New Year’s Day.
  9. Notice and redundancy entitlements of up to 16 weeks pay which is not a legislative entitlement at the moment.
  10. An information statement of workplace rights for employees.

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