The new Federal Labor Government introduced the Workplace Relations (Transition to Forward with Fairness) Bill into Federal Parliament on 13 February 2008. It was passed by both Houses of Parliament into law and commenced on 28 March 2008.
The introduction of this law represents the first step in the transition to another “new” workplace relations system advocated by Labor in opposition and envisaged to be in place and operating from 1 January 2010.
Essentially the Bill does the following:
- Puts an end to employers and employees making Australian Workplace Agreements (AWAs). However it introduces an Individual Transition Employment Agreement (ITEA) which may be used by employers currently using AWAs up until the beginning of 2010.
- Resurrects the ‘no disadvantage test’. This test is applied by the Workplace Authority Director when considering the registration of an ITEA or Collective Agreement. Those agreements will have passed the no disadvantage test if they do “not result, on balance, in the reduction in the employees overall terms and conditions of employment” when compared to a reference instrument. The reference instrument varies depending on the circumstances but generally will be an otherwise applying collective agreement or Award (including pre-WorkChoices instruments).
- Ends the employer requirement to issue the Workplace Relations Fact Sheet.
- Starts the Award modernisation process. That process will be conducted by the Australian Industrial Relations Commission when requested by the Minister. It is likely to be a Full Bench hearing process.
Modern Awards will be limited in scope to:
- 10 allowable modern award matters;
- industry specific detail about the National Employment Standards; and
- any other additional matters in the request from the Minister.
The National Employment Standards will replace the Australian Fair Pay and Conditions Standard under Work Choices and add a number of other elements such as flexible work for parents, community service leave and long service leave (currently governed by state Acts). The National Employment Standards are currently the subject of a discussion paper and community comment.
What is not contained in the Bill and left for further legislation after a period of consultation are provisions to do with unfair dismissal.
There has also been consultation with State Industrial Relations Ministers in relation to the harmonisation of occupational health & safety and workers’ compensation laws. It remains to be seen exactly how such harmonisation may be effected.
