What do I need to know for 1st January 2010?
From 1 January 2010 there are several important changes in Australia’s workplace laws that affect all employers and employees in the national workplace relations system.
The changes include the introduction of new National Employment Standards (NES), many employers in New South Wales, Queensland, Tasmania and South Australia moving into the national system, and the commencement of modern awards.
Employers and employees need to be prepared for these changes.
National Employment Standards (NES)
The Fair Work Act provides a safety net of enforceable minimum employment terms and conditions through the National Employment Standards (NES).
The NES sets out 10 minimum workplace entitlements which apply to all employers and employees in the national workplace relations system from 1 January 2010 (however only certain entitlements apply to casual employees).
The NES replaces the non-pay rate provisions of the Australian Fair Pay and Conditions Standard (the Standard), which applies up to and including 31 December 2009.
Fair Work Information Statement
From 1 January 2010, all employers covered by the national workplace relations system have an obligation to give each new employee a Fair Work Information Statement (the Statement) before, or as soon as possible after, the employee starts employment.
Modern awards
From 1 January 2010 modern awards replace existing awards in most industries.
Modern awards are industry or occupation-based enforceable minimum employment standards which apply in addition to the NES.
Modern awards cover all employers and employees who perform work in those industries or occupations covered by a particular modern award. However, modern awards may not apply to some managers or higher income employees (who have an appropriate guarantee of annual earnings of more than $108,300 annually) even if a modern award covers the industry in which they work.
Modern awards contain terms and conditions about:
- minimum wages
- overtime and penalty rates
- types of employment
- work arrangements (eg. rosters, variation to working hours)
- hours of work
- rest breaks
- classifications
- allowances
- leave and leave loadings
- superannuation
- procedures for consultation, representation and dispute settlement.
Some modern awards also contain terms about redundancy.
Transition to modern awards
Modern awards were created to establish one set of minimum conditions for employers and employees across Australia who work in the same industries and occupations.
As the modern awards replace thousands of federal and state-based awards, the impact of the wages and conditions in the modern awards vary between states, industries and employers.
To lessen the financial impact of the new arrangements, modern awards may contain transitional provisions which allow increases and decreases in minimum conditions to be progressively phased in.
Modern awards may contain:
- a model phasing schedule
- transitional provisions specific to the modern award
- no transitional arrangements at all.
In modern awards containing the model phasing schedule, new rates of pay will not come into force until 1 July 2010 and may be phased in over 5 annual instalments.
If there are no transitional provisions in a modern award, then the wages specified in a modern award need to be paid from 1 January 2010.