Monday, November 16, 2009

The Fair Work Act Australia - Are You Ready

The Fair Work Act begins on 1 July 2009 and has far-reaching changes that dramatically changed the landscape of industrial relations, as we know it.

A second tranche of the requirements 1 begins January 2010 with the introduction of the new awards modernization.

They are meeting increased demands on employees and obligations that companies have, with.

This is a point of view of the law which is not complete and you will be asked to take advice for your ownspecial circumstances.

1. Fair Work Act will start on 1 July 2009;
2. Contains 10 National Employment Standards (NES);
3. Modern award system;
4. The legislation contains far-reaching changes for every small business;
5. Other changes 1 January 2010.

Summary:

1. Employment

38 hours after the normal work, awards and agreements can be used for the averaging of the hour to make, plus a reasonable additional hours.

2. Annual leave

4 weeks (20 days)per year plus an additional week for shift workers;
Proportional (pro-rata leave) for part-time employees.

3. Personal / Carers Leave
To pay full time / part-time employees 10 days personal carers leave per year and 2 days of paid compassionate leave per occasion.
Sports 2 days of unpaid leave for personal tutors.

4. Community Service Leave
10 days of unpaid leave to eligible non-profit work.

5. Parental leave (1 January 2010)
Both parents to separate periods of up to the title12 months unpaid parental leave;
A parent may leave for another 12 months (24 months left in total), which may be refused only on reasonable business purposes.

6. Long Service Leave (no change)

7. Right to require flexible working arrangements
Parents with responsibility for a child of school age to support a change in working arrangements with the care of the child,
The employer may refuse the application, only in justified cases.
EmployersDecision will not be reviewed, not (yet).

8. Holidays
Employees are entitled to one days public holidays;
Employers can make a reasonable request for the employee to work;
The payment of penalty rates of awards won;
There are more changes to penalty rates in the allocation process of modernization, the 1st January 2010 starts.

9. Fair Work Information Statement
The employer must provide a Fair Work Information Statement Australia provides for all new employeesat the beginning of employment with the employer;
From 1 January 2010;
Fair Work Information Statement must be written.
No need for existing employees

10. Termination of employment
Notice by the employer, remain unchanged and must be submitted in writing;
A Fair Dismissal Code was introduced that the accepted guideline is to meet for the employer;
Exclusion for unfair dismissal reduced from 100 to 15 employees;
Remedies for unfair dismissal focus onreinstatement rather than compensation.

Redundancy

1. Operational reasons must be genuine such as;

Job no longer required to be performed by anyone;
The employer has complied with the consultation requirements;
It was not reasonable in all the circumstances to redeploy the employee within the entity or an associated entity of the employer.
Can be investigated to see if the redundancy was genuine;
If an employee was dismissed for performance reasons there must be an audit trail demonstrating that the process was managed within accepted guidelines and the law.
One warning is enough however you must have proof and an audit trail;
Important to diarise all employee discipline and performance matters.

Union Right of Entry Expanded

Official can enter for OHS, a suspected contravention of the Act, modern award, enterprise agreement, workplace determinations;
Official may inspect work, processes, Objects, or check and copy relevant documents, including non-member records and interview workers who are entitled to agree on and are members;
An official may enter, to interviews with staff carrying out the work on the site to be the question of the members, and want to participate in the discussions to keep;
The unions are now contracting jobs that are free (not through a surcharge).

Transfer of busines
New term replacing the transfer of businesses;
It is nowOutsourcing and corporate re-organizations;
12 months previous limitation as to transfer tools from now on, until they removed or replaced;
If an employee transfers between associated companies (with no more than three months break between the two positions), or because he / she is a transfer of employees in a transfer of business, service with the first employer is considered to be service with the second, but Although every break does not count as service, it is not breakcontinuity of service.

Modern Award System

Some features of the new system include:

Wages (classification rates in modern awards and the federal minimum wage) are reviewed annually;
The minimum wages panel must also make a 'national minimum wage order' applying to all employees not under a modern award or agreement.
These minima must also cater for trainees, juniors and the disabled.
Modern awards may contain other terms that supplement the NES.
Some Awards allow opt modern, casual employees, part-time employees will be at 6 or 12 months service and the employer the right to refuse.

Business Concerns
De facto reintroduction of pattern bargaining;
Awards cover all employees earning up to U.S. $ 100,000;
To mobilize good faith collective bargaining and unions;
Modern awards included significant wage increases and allowances (Cleaning Industry 16%) upward adjustment of the cost;
Some awards can be casual employees are entitledhidden part-time work after 6 or 12 months, and the employer has no right, Hasa, the rejection;
Major union demands for collective agreements, where they can co-respondents, the greater the employer time, effort and increase in wages.

What you can do your business?
Minimize risks of employment;
Minimize your corporate business risks;
Implementing a Human Resource Compliance Audit;
Engage specialist, such as momentum and to check Bizminmise your entrepreneurial risk;
Do not think you will not be tested and are safe.

Remember: The unions have publicly said that now its payback time and already applications for 4 to 6% pay increases have been filed against some companies.

What is your business need to know
Make sure every employee has a legitimate up-to-date job description;
Make sure all employees including the management have a current employment contract;
Make sure your company has a strategy andProcedures manual for human resources, so many are mandated by law;
Ensure that all employees have been included and reinduct employee per year.
Ensure OH & S is up to date;
Remember, its not if you are caught, but if you become caught.

For more information and helpful articles to see or contact Biz Momentum