Macrossans Lawyers Brisbane law firm

By Rachel Drew

On 13 February 2008, the Rudd Government introduced the Workplace Relations Amendment (Transition to
Forward with Fairness) Bill, which represents the first stage of Labor’s election commitments.

The bill phases out AWAs, provides for interim individual agreements, restores a no-disadvantage test, and starts the
award modernisation process. The rollout will continue over the first half of 2008.

Phasing out AWAs

The commencement date for the new legislation for AWAs has not been set, but is likely to be mid-2008. No AWAs
can be made after the commencement date, while any AWAs made and lodged before the commencement date, or
made before and lodged within 14 days of this date, will operate until terminated or replaced.

Individual Transitional Employment Agreement (ITEA)

The Government has proposed a new workplace instrument – the Individual Transitional Employment Agreement (ITEA). Generally, an employer with existing employees on individual agreements (such as AWAs) may continue to make individual agreements with new employees or employees already on AWAs until 31 December 2009.

No Disadvantage Test

The ‘No Disadvantage Test’ will replace the Howard Government’s ‘Fairness Test’, comparing workplace agreements (both ITEAs and new collective agreements) to a reference instrument, such as an award.

Award modernisation

The Australian Industrial Relations Commission (AIRC) will begin the process of modernising the award system
to guarantee minimum wages and conditions for workers and make awards simple to understand and easy to apply.

Awards are to be modernised by 1 January 2010. The AIRC has started identifying priority industries, which may
include clerical, retail, manufacturing and mining, and will start implementing the modernisation process from late this
year.

Modern awards may contain ‘ten allowable matters’ that build on the National Employment Standards and can
be tailored to occupations and industries.  These include minimum wages, type of employment, hours of work, overtime,
penalty rates, allowances, leave, superannuation, dispute procedures and minimum annualised wage or salary
arrangements.

Modern awards will not apply to employees traditionally outside awards or
employees who earn over $100,000 and agree to terms and conditions under the
new system. As yet, it is not clear what employees will need to do to opt out of the award-based system.

Fair Work Australia

One of the prime elements of the Government’s new industrial relations policy is the establishment of Fair Work
Australia (FWA), which is yet to be put into legislation.

FWA will provide a ‘one-stopshop’, replacing the Australian Fair Pay Commission, the Offi ce of the Employment Advocate, the Offi ce of Workplace Services, the Australian Building and Construction Commission, and the Australian Industrial Relations Commission.

FWA will ensure employers and employees comply with new workplace laws and National Employment
Standards and will be responsible for:

• Determining minimum wages
• Reviewing and approving collective bargaining agreements
• Assisting parties to resolve workplace grievances
• Resolving unfair and unlawful dismissal claims
• Monitoring compliance with workplace laws, awards and agreements
• Regulating registered industrial organisations
• Conduct inquiries and advise on the National Employment Standards.

A separate division within FWA will undertake judicial functions.