Are you Fair Work ready?
Modern Awards
The new system of Modern Awards takes effect on 1 January 2010 and provides 122 awards, covering various industries and occupations. Employers should be aware that many industries and occupations which were previously award free, are now covered by a Modern Award. Modern Awards will apply to most employers unless they are party to a registered workplace agreement.
Most conditions within the Modern Award take effect from 1 January 2010, however pay rate changes do not take effect until 1 July 2010 and employers have a five-year transition period (in most but not all cases) to meet the new pay requirements.
Award Flexibility Agreements (designed to replace AWAs) will apply where the Employer and Employee “genuinely” agree to vary arrangements for work, overtime and penalty rates, allowances and leave loading. This cannot happen until after the employee has commenced employment, so cannot be a condition of employment.
There is a general ruling under the Fair Work Act and the Modern Awards which stipulates that an employee cannot be “worse off” under the new system. So if an employee feels that they are worse off under the new system due to a reduction in pay, entitlements or conditions, they can make a claim to Fair Work Australia who will make appropriate arrangements with the employer to ensure the employee is no worse off.
For more information about the Fair Work Act visit:
www.fairwork.gov.au
www.fairworkforsmallbusiness.com.au
www.fwa.gov.au
- Kristy-Lee Johnston is the director of Footprint Recruitment Pty Ltd (www.footprintrecruitment.com.au)
These changes are amusing. I feel these are more employee friendly and will lead to a happier work environment.
Amusing for some, confusing for others…….I worry that small business will struggle to meet the compliance requirements for years to come.