Appendix 6 - Summary of effects of Work Choice changes on employers

Appendix 6 - Summary of effects of Work Choice changes on employers

Incorporated Employers

Award/

Agreement Coverage - Current

 

Effect of New Legislation

 

Employer entering into new Agreement

 

If Employer does nothing

 

State award (common rule or single enterprise)

 

Deemed a transitional federal agreement (Part 5A)

Terms except those below AFPCS and prohibited content federally enforceable

3 year nominal expiry date (Part 5A)

 

Can be replaced by new federal agreement before expiry date.

existing agreement cannot be varied or extended. (part 5B)

 

Move to most appropriate federal award after expiry date of transitional federal agreement.

AIRC to determine appropriate federal award coverage.

 

State agreement (eg NSW enterprise agreement)

 

Deemed a transitional federal agreement

terms except prohibited content federally enforceable

retain nominal expiry date (Sch 15)

 

Can be replaced by new federal agreement before expiry date subject to Australian Fair Pay and Conditions Standard (AFPCS)

existing agreement cannot be varied or extended.

 

Continue in effect until replaced or terminated but subject to AFPCS after nominal expiry date

 

Federal award

 

Continues to apply. 4 allowable matters (jury service; superannuation; notice of termination and long service leave) not able to be put into new awards or varied.

superannuation continues until 30/06/08 only

wages set by AFPC

annual, personal carers and parental leave removed unless more generous than AFPCS (Part 6)

 

May enter collective or individual agreement subject to AFPCS

some award conditions continue to apply unless explicitly excluded by agreement

agreement lodged with OEA

agreement commences when lodged (Part 5B)

 

Award continues to apply

 

Federal agreement (Div 2 or 3 Certified Agreement; Australian WA)

 

Continues to apply and retains current nominal expiry date.

Current terms apply

(Sch 14)

 

May enter new collective or individual agreement subject to AFPCS

some award conditions continue to apply unless explicitly excluded by agreement, eg personal leave

agreement lodged with OEA. Agreement commences when lodged (Part 5B)

 

Agreement continues to apply after nominal expiry date unless replaced or terminated

relevant conditions subject to AFPC minimum

 

Award free

 

No change

may seek federal award coverage

 

May enter agreement subject to AFPCS (Part 5A)

agreement lodged with OEA

agreement commences when lodged

 

Contract of employment continues to apply

state and federal legislation continue to apply

 

Unincorporated Employers

Award/Agreement Coverage - Current

 

Effect of New Legislation

 

Employer entering into new Agreement

 

If Employer does nothing

 

State award (common rule or single enterprise)

 

No change – state system continues to apply

 

Agreement made under state rules

 

State award continues to apply

 

State agreement (eg NSW enterprise agreement)

 

No change – state system continues to apply

 

Agreement made under state rules

 

Agreement continues in effect subject to state laws

 

Federal award

 

Deemed transitional award and allowable matters continue to apply (Part 6)

superannuation continues until 30/06/08 only

AIRC able to vary wages, allowances in transitional award having regard to AFPC decisions

 

May negotiate state agreement or decide to revert to state award(s)

may apply to AIRC to be released from federal system if intractable industrial dispute

 

Transitional award expires and coverage reverts to state system

 

Federal agreement (Div 3 CA)

 

Deemed transitional agreement (Sch 13)

5 year nominal expiry date

 

May negotiate state agreement or decide to revert to state award(s). May apply to AIRC to be released from federal system if intractable industrial dispute

 

Transitional agreement expires and coverage reverts to state system

 

Award free

 

No change

 

May enter state agreement subject to state rules

 

Contract of employment continues to apply. State and federal legislation continues to apply

 

Source: Dick Grozier, Director of Industrial Relations, Australian Business Industrial, www.WorkplaceInfo.com.au, (provisions of supplied by the Parliamentary Library

Navigation: Previous Page | Contents