The Fair Work System and Modern Awards

Why?• Complicated system of pre-reform federal awards,

Notional Agreements Preserving State Awards (NAPSAs), pay scales and other industrial instruments – 3715 separate instruments.

• Compliance with multiple instruments could be difficult for employers.

• Movement to national workplace relations system.

Award modernisation

How it started…

Award modernisation commenced in March 2008.

• Commencement of Transition Act

• Minister for Employment and Workplace Relations, the Hon Julia Gillard MP, issued the award modernisation request to the Australian Industrial Relations Commission (AIRC).

AIRC to create modern awards to replace the existing complicated system of pre-reform awards, NAPSAs and pay scales. Modernisation to be complete by 31 December 2009.

Award modernisation

What was achieved…

• 3715 instruments condensed to 122 modern awards.• Process completed within timeframe set by the Minister.• Modernisation benefited from extensive AIRC consultation:

• Published exposure drafts of each modern award for comment

• Conducted hearings where stakeholders could present submissions

• Considered written submissions from all interested stakeholders.

Award modernisation

Where to from here?

Pay/classification provisions will commence on 1 July

One-off review of awards at the beginning of 2012. • Achieving modern awards objective.• No technical problems or anomalies..

Recurrent substantive review – Fair Work Act 2009• 4-yearly review of modern awards – first in 2014.

Modern awards

Modern awards provide a fair and relevant safety net of standards, taking into account:

• Living standards and needs of the low paid• Promote social inclusion through workforce

participation• Equal remuneration for work of equal or comparable

value• Easy to understand, stable and sustainable award

system

Modern awards objective

The Act is the legislative basis of the Fair Work system. The Act includes the 10 National Employment Standards (NES) that apply to all employees in the national workplace relations system.

The NES:• Maximum weekly hours• Flexible work requests• Parental leave• Annual leave• Personal/carer’s leave

Fair Work Act 2009

• Community service leave• Long service leave• Public holidays• Termination and redundancy• Fair Work Information Statement

The Act and modern awards

The Act is also the legislative basis for the ongoing creation and variation of modern awards. It sets out the modern awards objective, as well as:

• Fair Work Australia can make, vary and revoke modern awards

• Terms that can and cannot be included in awards• 4 yearly review of awards

… Fair Work Act

Modern awards can be variedFWA has the power to vary modern awards in certain situations. Awards can be varied upon application by parties, or by FWA at its own initiative. Reasons for variations:

• To resolve uncertainty or ambiguity• To achieve the modern awards objective• In accordance with human rights and anti-

discrimination principles.

Award variations

Applying to varyAn individual or organisation can apply to FWA to have a modern award varied.

Complete application lodge with FWA provide to relevant parties.

Submissions in support of or opposition to the application FWA may conduct a hearing before determining the matter.

Modern Award variations

When setting, varying or revoking award minimum wages & the national minimum wage

FWA must establish a maintain a safety net of fair minimum wages, taking into account:

• Needs of the low paid • Principle of equal remuneration• Performance/competitiveness of the national

economy• Social inclusion through workforce participation

Minimum wage objective

Award wages can be varied in accordance with the minimum wage decision

FWA can make a determination varying award wages:• Must take into account the national minimum wage• Take effect 1 July• Flow on from national minimum wage determination

Award wages variations

State or national system?

Many businesses were in the federal system prior to the commencement of the Fair Work system – new national system.

Some businesses have moved from state workplace relations systems to the national system. Transitional provisions assist with the changes.

Non-trading corporations, unincorporated entities, partnerships or sole traders in Western Australia continue unaffected in the state system.

Australian Disability Enterprises

Supported Employment Services Award 2010 (SES Award)

Commenced 1 January 2010• Covers employers operating supported employment

services.• Classification grades 1 – 7.• Incorporates the use of listed approved wage assessment

tools.• Includes overtime and penalty rates, superannuation,

hours of work, leave and public holidays.• Includes transitional provisions to enable smooth

transition to the modern award.

SES Award continued

VariationThe award was varied on 15 March 2010. Minor variations:

Adding work descriptors to classification grades Including transitional provisions in the award.

Where to access

Employers can get a copy of the award at www.fwa.gov.au ‘Awards and award modernisation’ ‘Find an award’

FWA is the new independent tribunal

Commenced on 1 July 2009. Has replaced the Australian Industrial Relations Commission.

FWA is a modern, responsive and streamlined institution.• Conduct hearings• Function in an inquisitorial manner• Hold informal conferences• Determine matters on written submissions

Fair Work Australia (FWA)

What FWA does

Fair Work Australia is the national workplace relations tribunal. It is an independent body with power to carry out a range of functions relating to:

• the safety net of minimum wages and employment conditions • enterprise bargaining • industrial action • dispute resolution • termination of employment • other workplace matters.

… Fair Work Australia …

FWA replaced:

• Australian Industrial Relations Commission• Australian Industrial Registry• Australian Fair Pay Commission• Workplace Authority (Agreement

assessment)

… Fair Work Australia

The role of the Fair Work Ombudsman is to work with employees, employers, contractors and the community to promote harmonious, productive and cooperative workplaces.

• Providing education, assistance and advice on relevant Commonwealth workplace laws

• Promoting and monitoring compliance with relevant Commonwealth workplace laws

• Inquiring into and investigating any act or practice that may be contrary to workplace laws.

Fair Work Ombudsman (FWO)

The Office of the Fair Work Ombudsman replaced:

• Workplace Ombudsman• Workplace Authority (Advisory elements,

including Infoline)

… Fair Work Ombudsman

• Fair Work Online – www.fairwork.gov.au or Infoline 13 13 94

• Fair Work Ombudsman – www.fwo.gov.au or 13 13 94

• Fair Work Australia – www.fwa.gov.au or call 1300 799 675

Useful contacts