Award Information
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- Fair Work Act 2009 - Implications for Employers What employers need to know before 1st January 2010
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Special annoucement - New Modern Award
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The Australian Industrial Relations Commission has handed down its decision on variations and transitional arrangements sought by ASIAL in respect of the new Security Services Award 2010 (the Award).
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Commencement and Operation
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This award commences on 1 January 2010.
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Transitional arrangements commence from 1 July 2010
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Details on the actual operation of the transitional arrangements will be made available in early 2010.
The monetary obligations imposed on employers by this award may be absorbed into overaward payments. Nothing in this award requires an employer to maintain or increase any overaward payment.
The award contains transitional arrangements which specify when particular parts of the award come into effect. Some of the transitional arrangements are in clauses in the main part of the award. There are also transitional arrangements in Schedule A and Schedule B. The arrangements in Schedule A and Schedule B deal with:
• Minimum wages and piecework rates
• Casual or part-time loadings
• Saturday, Sunday, public holiday, evening or other penalties
• Shift allowances/penalties.
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Neither the making of this award nor the operation of any transitional arrangements is intended to result in a reduction in the take-home pay of employees covered by the award. On application by or on behalf of an employee who suffers a reduction in take-home pay as a result of the making of this award or the operation of any transitional arrangements, Fair Work Australia may make any order it considers appropriate to remedy the situation.
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Fair Work: Modern Awards and National Employment Standards (NES) Commence
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There has been little advertising regarding the second stage of the Fair Work Act and it is not surprising that confusion reigned went it commenced on 1 January 2010. Fair Work Australia’s help line went into melt down.
Tony Abbott has called for a moratorium on prosecuting small businesses that breached the new laws. The hidden danger is that under the old system, many businesses used to simply ignore awards believing, mistakenly, that if they paid “above award wages” the awards didn’t apply. In reality the new system is simpler, it is also easier to enforce and employers who don’t comply will find themselves at high risk of fines, penalties and employee claims.
Julia Gillard argues that the new system will reduce compliance costs for small business in the long run, the reality is that you can’t reduce compliance costs if you weren’t complying in the first place. There is no way to avoid the fact that, irrespective of the employers’ previous levels of compliance, they will need to undertake work to upgrade their policies, procedures and employment contracts in order to comply with the new regime.
If you need help in this area please call ASIAL or register for one of our upcoming Employee Relations workshops in your State.
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Links to Awards
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Other useful links
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Fairwork online
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For information about record keeping, pay and leave conditions, workplace disputes etc.
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Fairwork Australia
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For information about agreements, awards, legislation regulations, minimum wages etc.
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New 'Fair Work for Small Business" website
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An online one-stop-shop for education and information for small businesses on the Fair Work Act. Fair Work for Small Business provides free information including free online webinars, educational guides and information papers.
Go to: http://www.fairworkforsmallbusiness.com.au
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Overview
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Major changes to workplace laws came into effect from 1 July 2009 and it is vital that all businesses, regardless of size, prepare themselves for these changes.
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Key changes include:
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From 1 January 2010:
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- A new set of 10 National Employment Standards that will apply to all employees
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- A new national award system
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ASIAL members can have their questions answered by our Industrial Relations Advisor, Chris Delaney, on 02 99707125 or email: ir@asial.com.au
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For your information, here is a fact sheet which highlights some of the challenges your business may face.
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Award Updates
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Modern Awards
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The Australian Industrial Relations Commission has handed down its decision on variations and transitional arrangements sought by ASIAL in respect of the new Security Services Award 2010 (the Award).
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Transitioning Provisions in Modern Awards.
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The impact of the new modern awards on the private security industry is significant. Labour costs will increase for employers in most state and territories as a result of the new modern awards. Some employers will find that their employees are covered by a modern award where those employees were not previously covered by any award, for example RTOs, or covered by different industry awards (some “control room operators.")Read more...
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Sole traders and partnerships currently covered by State Awards will move to the Federal system by 2011.
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Sole Traders and partnerships currently covered by State Awards will move to the Federal system by 2011
State awards that move to the national system will continue to operate for a year before terminating in 2011 under a new bill introduced into federal parliament giving effect to the South Australian and Tasmanian IR referrals.
Workplace Relations Minister Julia Gillard said the referrals were a further step towards ending the "...confusion and complexity" the current corporations power-based arrangements had caused.
The federal government will provide additional financial assistance to referring States to educate transferring employers and employees on the new system.
State employees move to modern awards from 2011
State agreements in referring States will continue to operate until they expire under the legislation, while State awards will be replaced by modern awards after 12 months.
Referring State awards, other than enterprise awards, will become "Division 2B State awards" and continue to apply for 12 months from the referral commencement - anticipated to be January 1, 2010 - before terminating and being replaced by the relevant modern award.
State employers and employees who are not covered by a State award but who are capable of being covered by a modern award will be covered by that modern award from referral commencement.
A "no-detriment" test will apply to Division 2B awards to ensure they comply with the NES and they must pay above minimum wage as set in the national minimum wage order.
Where a federal system agreement is made for employees covered by a Division 2B award, it will be required to satisfy the better-off-overall test in relation to that award.
State enterprise agreements – or, once referred, Division 2B State employment agreements – will continue to operate until they are terminated after nominally expiring or by agreement of the parties.
Once part of the national system Division 2B agreements will be required to satisfy the NES and pay above the minimum wage in the appropriate modern award or the national minimum wage order, but the Fair Work Act's prohibited content rules will not apply.
Further, where Division 2B agreements confer power on State industrial bodies (or other third parties) to resolve disputes, they will continue to be able to exercise that power. The bill provides that Division 2B agreements without a dispute resolution clause will have inserted a model clause.
For both Division 2B awards and agreements, an employer can apply to FWA to phase-in any increase in wages resulting from the transition if it is "necessary to ensure the ongoing viability of the employer’s enterprise".
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Disclaimer
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Note: The information provided above is for convenient reference only. ASIAL and Chris Delaney & Associates Pty Ltd provide this information on the basis that it is not to be relied upon in any or all cases, as the circumstances in each matter are specific. Accordingly, we provide this information for general reference only, but we advise you to take no action without prior reference to an Employee Relations professional. ASIAL members can contact Chris Delaney by emailing ir@asial.com.au
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