09 May 2007
You will probably be aware that the Prime Minister has announced amendments to the Workplace Relations Act and Regulations. To view a copy of the paper "A Stronger Safety Net for Working Australians", please click here.
The amendments proposed will make changes to the rules governing the content of workplace agreements, including:
- The introduction of a new "Fairness Test", which is similar to the pre-WorkChoices "No Disadvantage Test", although limited to protected award conditions: penalty rates, shift and overtime loadings, monetary allowances, annual leave loadings, public holidays, rest breaks, and incentive-based payments and bonuses;
- The Fairness Test will apply to AWAs where the employee earns less than $75,000 per year, and to all other workplace agreements in industries "covered by an award" where the agreement modifies or removes any or all of the protected award conditions; and
- The Fairness Test will apply to all workplace agreements (not just AWAs) lodged on or after Monday 7 May 2007.
The amendments to the Act and Regulations have not yet been released. As you would expect, there are some areas where the impact of the change cannot be fully ascertained until the amending Bill is tabled. Once we receive further details of the amendments we will contact you again.
Until the details of the amendments are known, you may wish to hold off on lodging any workplace agreements.
Disclaimer
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this bulletin. Persons listed may not be admitted in all states and territories.
For more information, contact...
Email:
Hedy Cray, Partner
Tel: +61 7 3292 7003