Dear Firstname,

 

The Federal Government has introduced a new Workplace Relations Fact Sheet which employers who are corporations must provide to all their employees. The fact sheet is attached to this Bulletin and we have also reproduced the following information from Ebsworth and Ebsworth lawyers on this subject and other important changes to the minimum wage conditions:

 

Please circulate this Bulletin to the appropriate person(s) within your organisation

As we foreshadowed in our last Workplace Relations Bulletin, recent amendments by the Howard Government to the Workplace Relations Act 1996 have introduced a new Workplace Relations Fact Sheet which employers who are corporations must provide to all their employees.

The required Fact Sheet has now been published and is attached to this email. As of 20 July 2007 employers are legally required to provide new employees with the fact sheet within seven days of commencing work and for current employees it must be provided no later than 20 October 2007.

In order to minimise time and expense, we suggest that for current employees the Fact Sheet be distributed by email (where possible) or otherwise a hard copy be attached to their next pay slip. For all new starters the Fact Sheet should be attached to the letter of appointment or contract of employment. Employers may want to explain to their employees that the Fact Sheet is provided in accordance with new legal requirements under WorkChoices.

Should you require any clarification on the requirement to provide Fact Sheets to your employees please contact us.

We advise that the Australian Fair Pay Commission has today handed down its Wage Setting decision for 2007 [clients will recall that the last AFPC decision was made in October 2006 with effect from December 2006]. The Commission has granted a general pay increase that will adjust the standard Federal Minimum Wage (FMW) and Pay Scales for all Federal Awards and NAPSA's as follows:

1. an increase of $10.26 per week ($0.27 per hour) to the FMW bringing the weekly rate to $522.12. The FMW increases from $13.47 to $13.74 per hour;
2. an increase of $10.25 per week ($0.27 per hour) in all adult Pay Scales up to and including $700 per week;
3. an increase of $5.30 per week ($0.14 per hour) in all adult Pay Scales above $700 per week.

The increases will take effect from the first full pay period on or after 1 October 2007. Please note that the increase will not apply to employees who are on EBAs or AWAs, or who earn above the award rates for their respective Pay Scale, or who are on higher award classifications not reflected in Pay Scales.

In arriving at its decision today the Commission has taken into account:

• the 10 month period since the last Fair Pay increase (December 2006) to the FMW and Pay Scales.
• the sensitivity of low paid employment to changes in wage levels, as well as incentives for individuals to to seek and remain in paid employment.
• the fact that the economy and labour market have continued to perform strongly (though not uniformly).
• movements in consumer prices; and
• the requirement to provide a safety net for the low paid.

The FPC increases flow on to casual employees, junior employees, employees with disabilities and employees to whom training arrangements apply. Upon implementation of the Fair Pay Commission increase in October 2007, the minimum wage will be some 7.8% higher than in June 2005.

The Commission has announced that it will conduct an annual minimum wage review and announce its wage setting decisions in July each year with an implementation date from the first pay period of October each year.

The Commission has also announced that it will commence the rationalisation of Pay Scales later this year. The process will commence with the release of an issues paper in September this year and will inform interested parties of its Stakeholder Research Consultative Committee about the issues for consideration and assist the parties to consider how the rationalisation process may affect them. Submissions in response to the paper will be requested and considered by the Commission.


Mark Diamond Partner
e: mdiamond@ebsworth.com.au
t: 2 9234 2391

Alice De Boos Senior Associate
e: adeboos@ebsworth.com.au
t: 2 9234 2430

Joe Moses Lawyer
e: jmoses@ebsworth.com.au
t: 2 9234 2571