Industrial Relations laws are changing. First there was “WorkChoices” – now we have “Forward with Fairness”.

In March, the federal parliament passed the Workplace Relations Amendment (Transition to Forward With Fairness) Act 2008 which bans future Australian Workplace Agreements (AWAs), phases out existing AWAs by 2013, and introduces interim individual transitional employment agreements (ITEAs). A more substantial workplace relations Bill will be introduced in Parliament this year and it is expected that the Government’s new system will be fully operational by 1 January 2010.

Forward with Fairness will override some changes introduced under WorkChoices in 2006, but not all. It will maintain the federal industrial relations system introduced by WorkChoices.

The new IR platform is based on six
key elements:

• a uniform national industrial relations system;

• the creation of a new industrial “one stop shop” called Fair Work Australia which will provide information, advice and assistance to settle disputes and ensure compliance with the new laws;

• the introduction of a safety net of 10 National Employment Standards including hours of work and parental leave, plus up to 10 further minimum conditions enshrined in awards which will provide a base for collective bargaining;

• collective rather than individual bargaining;

• retention of industrial action rules; and

• expansion of the unfair dismissal jurisdiction.

The changes have several implications for employers and employees. The new ITEAs are designed to be a workable alternative to AWAs over the next two years for employers who use individual statutory agreements. Employers who don’t want to collectively bargain with a union will continue to be able to offer employee collective agreements for up to five years.

The new Act replaces the “fairness test” with a “no-disadvantage test”, which is administered by the Workplace Authority Director. The director will determine whether an agreement maintains an employee’s overall terms and conditions of employment.

The new Federal Government’s industrial relations reform continues to be rolled out. It is important that employers and employees keep up with their rights and responsibilities. n

More information

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Stewart’s Guide to Employment Law by Andrew Stewart. $60.