Workplace Relations - Workchoices on notice
By 20 October, employers are legally required to have distributed the federal government’s “Workplace Relations Factsheet” to all existing employees. The Factsheet is part of recent changes to the workplace relations system and sets out information about the Australian Fair Pay and Conditions Standard, employee protections and the roles of the Workplace Authority Director and Workplace Ombudsman.
With the federal election looming, the issue of workplace relations has become a prominent talking point. Critics of “WorkChoices” have been particularly vocal since the new laws were introduced by the government in March 2006. The Workplace Relations Amendment (A Stronger Safety Net) Act 2007 (Cth), which commenced on 1 July this year, could be seen as an attempt by the Howard government to allay concerns in time to secure an election victory.
The “stronger safety net” established under the new legislation provides for:
• Two new statutory offices – the Workplace Authority and the Workplace Ombudsman;
• A “Fairness test” to assess certain workplace agreements; and
• A compliance framework (including civil remedy provisions) for the Fairness Test.
The Fairness Test, which is essentially a modification of the no-disadvantage test, is administered by the Workplace Authority and applies to agreements that change or remove protected award conditions (such as penalty rates and leave loadings). This is for employees in jobs or industries where an award normally applies. For Australian Workplace Agreements (AWAs), the test only applies for employees earning less than $75,000 per year.
This revised approach was introduced in response to concerns that protections were being traded off under workplace agreements without fair compensation. Under the new laws the Workplace Authority determines whether the agreement meets the fairness test and where an agreement fails the test, parties are given 14 days in which to remedy it.
Also focusing on the “fairness” theme, the Australian Labor Party (ALP) released its “Forward with Fairness” policy, promising to overhaul the WorkChoices regime if elected to government. The ALP’s proposals include encouraging the referral of legislative power from state governments, phasing out AWAs and other statutory individual contracts, reversing certain unfair dismissal provisions, and lifting current restrictions on the content of awards in order to strengthen the safety net in collective bargaining and common law agreements. In addition, “Fair Work Australia” would be established as the single regulatory body replacing the Australian Fair Pay Commission, the Australian Industrial Relations Commission, the Australian Building and Construction Commission, the Office of the Employment Advocate (now the Workplace Authority) and the Office of Workplace Services (now the Workplace Ombudsman).
It seems the workplace relations landscape has become a major battleground in this year’s electoral campaign. The future of workplace relations in Australia appears to be in the hands of the voters.
More information
From the LIV Bookshop: Australian Workplace Relations Act 1996 with Regulations and Rules (12th ed). Plus Fairness test/Safety net entitlements, $150
Useful web links:
www.workplaceauthority.gov.au
Disclaimer:
The information in this newsletter is not intended to be a complete statement of the law relating to the issues raised. Accordingly, no person should rely on this information without first obtaining specific advice from Brendan Kelly of our office. | 
