1. Workplace Relations Reform
WORK CHOICES
Presented by
Employment Relations Services,
Motor Traders’ Association of NSW

2. Work Choices relies on
Corporations Power to bring all corporations into the new federal system
Territories Power – all businesses in ACT
Industrial Relations Power - a Transitional measure only to keep non corporations within the system for 5 years

3. Work Choices – Object of the Act
Encourage high employment, low inflation, international competitiveness via high productivity & fair flexible labour market
That responsibility for employment matters is with parties at enterprise level
Employers & employees choose the form of agreement
Compliance with minimum standards
Awards act as a minimum safety net

4. Work Choices establishes
Australian Fair Pay Commission
Australian Fair Pay & Conditions Standard
Australian Pay & Classification Scale
New Transmission of Business obligations
New Workplace Agreement regime
New Union Right of Entry Requirements
Awards to be Reviewed
Unfair Dismissal exemption for med/small employers & severance pay exemption small business
Unfair contract provisions

5. Australian Fair Pay Commission decisions only apply to constitutional corporations and all employers in ACT (& Victoria).
Est. the Aust Pay & Classification Scale
Conducts wage reviews
Sets the Federal Minimum Wage
Set wages for apprentices, trainees & disabled.
Sets casual loadings

6. Fair Pay & Conditions Standard applies: constitutional corps and all employers ACT, Vic
Applies to all employees (incl. award free)
Federal Minimum Wage $12.75/hr. Paid weekly
Casual loading
Max average 38 ordinary hours per week
Personal/Carers leave of 10 days, plus 2 days compassionate leave
4 Weeks Annual leave
Parental leave of 52 weeks unpaid

7. New Minimum Entitlements
Employees must have a meal break of 30 minutes after not more than 5 hours
Does not apply where award or agreement cover
Entitlement to public holidays –New year, Australia Day, Good Friday, Easter Monday, ANZAC Day, Christmas Day & Boxing Day
Employer right to request work; employee right to refuse on “reasonable grounds”

8. AWARDS State & Territory boundaries removed
Review – Number of Fed Awards
Review to remove non allowable matters
Redundancy provisions altered to ensure only apply to employers of 15 or more employees
Inclusion of model dispute settlement procedure

9. Awards constitutional corporations, employers ACT, Vic
“Preserved” award provisions declared – annual leave, personal/carers leave, long service leave, parental leave, notice periods, Jury service leave & superannuation (till )
Such provisions preserved in existing awards, not permitted in new awards
Where the AFP&C Standard also applies the “more generous” prevails
MTA members will continue to be respondent through MTA membership
State Awards becomes “Notional Agreements Preserving State Awards” for 3 years.

10. Preserved Award Provisions OR AFP&C Standard
Parental leave
As per award
AFP&C Standard
Annual leave
mthly accrual, due when accrued with approval, Er may require leave be taken after 2yrs
Personal/Carers leave
10 days + 2 LWOP compassionate

11. Transition to AFP&C Standard from award effective 27 March 2006
Annual leave – F’time working 38 hours = hours each 4 weeks (nominal hours over 4 weeks divided by 13 = hours accrued.
(award accrual hrs/wk)
Personal/Carers leave – F’time working 38 hours = each 4 weeks (nominal hours over 4 weeks divided by 26 = hours accrued.
(award accrual hrs/wk or 4.676/4 wks)
Compassionate leave – 2 days on each occasion Award bereavement leave does not apply.
(award 3 days bereavement leave does not apply)

12. Awards non constitutional corporations – sole traders/partnerships in NSW
Known as “Transitional Awards” (Schedule 13)
Such businesses respondent to award via MTA membership (for 5 years)
Preserved transitional award terms long service leave, notice periods, jury service leave & superannuation till Can’t be varied
Such employers not bound to observe AFP&C Standard – no “”more generous” test applicable
When varying transitional awards the AIRC to have regard for AFPC decisions (wage adjustments)

13. Termination of Employment constitutional corporations and all employers in ACT & Vic
Exemption from unfair dismissal for employers with 100 or less employees
Employers with over 100 employees - employees will not be entitled to access unfair dismissal regime if terminated inside six months after engagement
Plus – no unfair dismissal available if employee terminated for legitimate economic, structural, operational reasons

14. Termination of Employment all employers
Subject to Unlawful Termination claims – termination based upon race, colour, sex, family responsibilities, physical incapacity, religion, etc
Non constitutional corps – State discrimination and unfair dismissal laws

15. Termination of Employment non constitutional corporations in NSW – sole traders/partnerships
Subject to State unfair dismissal laws

16. Termination of Employment all employers with less than 15 employees
Exemption from having to make severance payments when making an employee redundant

17. AGREEMENTS available only to constitutional corps all employers ACT, Vic
Types of agreements:
Australian Workplace Agreements
Employee Collective Agreements
Union Collective Agreements
Union Greenfield
Employer Greenfield
Multi Business Agreements

18. AGREEMENTS
Once an agreement applies the parties may never resume coverage under an award
AFP&C Standard prevails
Protected award provisions (rest breaks, incentive based payments, leave loading, monetary allowances, overtime, shift work, penalty rates & State gazetted public holidays) will apply unless specifically excluded
Must not include prohibited content (as specified in Regulations – penalties apply)

19. Australian Workplace Agreements constitutional corporations, all employers in ACT, Vic
Individual employee/employer agreement
Approved upon signing and operative when filed
Parties to agreements confidential

20. Other Work Choice Matters
New restrictions on union right of entry
Increased DIR enforcement resources (+300 personnel)
State awards will become “Notional Agreements Preserving State Awards” & will operate for a period of 3 years
Pre-reform agreements continue. Not subject to AFP&C Standard, public holiday minimum entitlement

21. Where to from here? Electronic Employment Relations Service
IR News & MTA Journal
Take a considered approach. Plan. No need for urgent action in most cases.
Take time to review the detailed notes.
Utilise MTA’s Employment Relations Services