GOVERNMENT TABLES BILL TO STRIP BACK WORKCHOICES

Author: Giri Sivaraman

Publish Date: February 15, 2008

On Wednesday 13 February 2008 the Federal Government tabled the Workplace Relations Amendment (Transition to Forward with Fairness) Bill 2008 (“the Bill”).  The Bill makes significant changes to the Workplace Relations Act 1996 (“WRA 1996”). 

The following is a summary of some of the key changes and their implications for employers and employees:

1.             The Bill abolishes Australian Workplace Agreements (“AWAs”).  Employers and Employees will no longer be able to make AWAs.  However, AWAs that have been lodged prior to the bill being passed will continue to apply and operate under the provisions of the WRA 1996 prior to the amendments effected by the Bill .

2.             The Bill creates a new Individual Workplace Agreement, the Individual Transitional Employment Agreement (“ITEA”).  An ITEA can only be created between an employer and employee when certain conditions are met, including if the employee is employed under an AWA.  The ITEA must have a nominal expiry date no later than 31 December 2009.

3.             Federal Awards will no longer automatically cease to apply when a Workplace Agreement is terminated and parties will be able to incorporate Terms of Awards into their Workplace Agreement.

4.             The “Fairness Test” is removed but the “No Disadvantage Test” is re-introduced for collective and individual agreements.

5.             The Government is introducing a new Award Modernisation Process and ending the Award Simplification and Rationalisation Process.  The Modernisation Process will create a new form of industrial instrument, a “Modern Award”.  Modern awards will have ten allowable award matters and are likely to be linked to National Employment Standards, standards that will be introduced by the Government in the future as part of a new Federal Industrial Relations System.

6.             The Government is continuing with the policy of converting all State Awards that apply to constitutional corporations into federal instruments (a NAPSA).  Furthermore, NAPSA’s still have an end date as they did as a result of WorkChoices, however the end date has now been extended to 31 December 2009.

However the Bill is not a complete list of the changes intended by the Government to the WRA 1996.  The Government and the explanatory memorandum accompanying the Bill have alluded to further bills that will make other changes.  The opposition, after initially opposing the bill have now announced they do not oppose the substance of the bill, raising the possibility that it will become law by Easter.  Harris Wheeler will be running a series of seminars for its clients on the details of the Bill and its proposed changes.  In the meanwhile if you have any queries about this alert, please contact Giri Sivaraman on 4907 6328.

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