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home arrow publications arrow monitor arrow Winter 2007 arrow The facts on the Fairness test
The facts on the Fairness test

From 20 July 2007, all employers who operate under the Federal system of workplace relations must give a Workplace Relations Fact Sheet to employees.

The Fact Sheet provides a brief summary of the Workplace Relations Act, including the amendments of March 2006 such as the Fairness Test, the Australian Fair Pay and Conditions Standard, record keeping obligations, unlawful dismissals and freedom of associations provisions.

Employers can download the Fact Sheet from www.workplaceauthority.gov.au and email it to all staff or provide every employee with a printed copy.

Employers must provide current employees with a copy of the Fact Sheet by no later then 20 October 2007 and provide the Fact Sheet to new employees within seven days of them starting work.

Failure to provide the Fact Sheet within the time required may result in the employer being fined $110 for each employee who does not receive it.

Fairness Test

On 28 June 2007, the Commonwealth Government introduced a Fairness Test which must be applied to workplace agreements lodged on or after 7 May 2007.

The amendments also renamed two important federal bodies – the Office of Employment Advocate is now known as the Workplace Authority and the Office of Workplace Services is now known as the Workplace Ombudsman.

The Fairness Test introduces an additional layer of inspection to the process of registering Australian Workplace Agreements (AWAs) with the Workplace Authority.

The Workplace Authority will now inspect AWAs against the Fairness Test and will only register them if it is satisfied that fair compensation has been provided to employees for modifying or removing ‘protected award conditions’, such as penalty rates and public holiday pay.

If an AWA does not pass the Fairness Test, it will need to be changed and resubmitted for further inspection. The employer will also be required to make up any back pay.

The Workplace Ombudsman’s role is still to investigate and prosecute employers for failing to provide workers with the correct pay and conditions, failing to comply with agreement making rules and failing to comply with record keeping obligations.

The Workplace Ombudsman also provides free pre-lodgement advice to employers about AWAs.


Further information:
Rachel Drew
T (07) 3292 9717
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