WORKPLACE RELATIONS & SAFETY

 

 

Federal Government announces Transitional IR Bills & Senate Committee delivers Report on Fair Work Bill

3 March 2009

 

On 26 February 2009, Julia Gillard, Federal Minister for Employment and Workplace Relations informed the Senate Education, Employment and Workplace Relations Committee (Senate Committee) of the Government’s intention to introduce two bills containing transitional and consequential amendments to the Workplace Relations Act 1996 and Fair Work Bill 2008 (which was introduced into the lower house on 25 November 2008 and passed to the Senate on 5 December 2008).

The two bills are scheduled to be introduced into parliament on 6 March 2009 and in the week beginning 25 May 2009 respectively. Minister Gillard advised that the main content of the bills will be provisions:

§      to repeal the current Workplace Relations Act 1996 (which will be replaced by the “Fair Work Act” once the Fair Work Bill 2008 is proclaimed);

§      allowing Fair Work Australia to make orders ensuring an employee’s take home pay is not reduced as a result of the employee’s transition to a Modern Award;

§      abolishing the Workplace Ombudsman (to be replaced by the Fair Work Ombudsman) and the Australian Fair Pay Commission (to be replaced by Fair Work Australia);

§      for the continued operation of the Australian Industrial Relations Commission (AIRC), Workplace Authority and Australian Industrial Registry for a limited period;

§      creating the Fair Work Divisions in the Federal Court and Federal Magistrates Court;

§      applying the National Employment Standards (NES) to all national system employees from 1 January 2010;

§      creating rules to enable state-registered organisations to participate in the new Federal industrial relations system;

§      giving power to Fair Work Australia to determine union demarcation disputes;

§      relating to the operation of existing awards and agreements in the new system; and

§      making consequential amendments to over 70 other pieces of Federal legislation.

The Senate Committee has recently handed down a 211 page report on the substantive Fair Work Bill 2008 (Report). The main recommendations of the Senate Committee majority include:

§      that the period for an employee to access a proposed agreement be extended from seven days to 14 days;

§      that the time limit for lodging an unfair dismissal claim be increased from seven days to 14 days;

§      that the Fair Dismissal Code require employers to provide a written warning (taking into consideration the needs of employees from a non-English speaking background);

§      that a probationary period after a transfer of business should not be required;

§      that where industrial action threatens harm, the harm should be imminent and harm to a third party should be economic harm; and

§      that the Fair Work Information Statement to be provided to employees should also include information on individual flexibility agreements and unfair dismissal rights.

In the Report, the Federal Coalition minority was most critical of the transfer of business provisions (which argued it creates a disincentive for an incoming employer to retain staff), and changes to the right of entry provisions (which it believes permits increased access and will likely lead to demarcation disputes).

The Senate Committee majority recommended the Fair Work Bill 2008 be passed without delay.

Written by Aran Alexander, Associate.

 

 

 

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