The Fair Work Laws - An Introduction

The Federal Government in it’s so called “Forward with Fairness” policies are committed to change the focus and direction of Australia’s Industrial Relations laws.

This was put into action by having the Fair Work Act passed by the Senate which enabled the Government to begin the consolidation and modernisation of the Awards system. Some of the changes took effect in a staged process from the 1st July 2009 and was expected to be in full force as of the 1st of January 2010. However, this has not been the case – with employer and employee organisations still putting in submissions for the amendment of some of the Modern Awards and the projected completion of the new awards systems to be finalised sometime in late March this year.

This is the first of a series of Fact Sheets VECCI, which provides VECCI Members with more information about the changes and their implications. Further details can be obtained by attending one of the Member Briefings VECCI is providing on the new Fair Work laws. VECCI’s Helpline team can also provide further advice and information about what’s involved.

“Forward with Fairness “

The Government’s IR reform proposals were contained in its ‘Forward with Fairness’ policy which it described as “Labor’s plan for fairer and more productive Australian workplaces.” Its policy approach had some key themes.

• “An independent umpire to ensure fair wages and conditions and settle disputes.”
• “A strong safety net of minimum conditions.”
• “The right to bargain collectively.”
• “Abolition of AWA’s … an IR system with no statutory individual employment agreements.”
• “Fair rights if employees are unfairly dismissed.”

Those themes are in turn reflected in key parts of the new laws including:

• A beefed up Safety Net of minimum entitlements
• A revamped  scheme of Bargaining/Agreement Making
• Enhanced Union Representation Rights
• Extended Unfair Dismissal laws
• A re-empowered Industrial Relations Commission to become known as Fair Work Australia
• A revamped framework of awards

Shift in Direction

The Fair Work laws represent a step back to a more traditional framework of regulation.

Greater powers are given to the new Industrial Relations body known as Fair Work Australia, to get involved and intervene. There is less scope to put in place working conditions and work arrangements best suited to the needs of individual businesses. The ability to move from award coverage into an individual agreement has also been closed off.

Removal of the small business exemption from the unfair dismissal laws – that has been in place since March 2006 for businesses with “100 employees or less” would have been sheltered from the operation of those laws – will no longer have that protection. The Small Business Fair Dismissal Code now stipulates that a business is now considered a “small business” if it employs 15 persons or less.

A Different Context

The Government’s IR policies were obviously conceived and developed in an entirely different economic context from that which we confront now.  Whilst the Government has rejected calls from VECCI and others to defer implementation of some of the changes until conditions improve, their introduction at this time will undoubtedly add to the issues already confronting many businesses.

Support from VECCI

VECCI now wants to do what it can to support business through this process of change. The Fact Sheets, our Member Briefings and the additional advice and information available through the Helpline and our consulting team are all designed to provide that assistance and support.

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