“Know where you stand” is the new advertising slogan being used by the Federal Government to promote changes to its Industrial Relations system. With the Coalition conceding that “WorkChoices” is now a damaged brand, you can expect to see and hear this slogan “ad nauseam” in the run up to this year’s election.
“Know where you stand” is being used to inform employers of their obligations and advise employees of their employment rights following further changes to WorkChoices legislation. To be administered by the Workplace Authority, [previously the Office of the Employment Advocate], a new Fairness Test will be applied to ensure that all collective agreements and individual AWA’s for employees earning less than $75,000 per year and, any workplace agreement struck after 7th May 2007, provide fair compensation for modifying or removing any protected award conditions, including:
- Penalty rates including for working on public holidays and weekends
- Shift and overtime loadings
- Monetary allowances
- Annual leave loadings
- Public holidays
- Rest breaks, and
- Incentive-based payments and bonuses
All workplace agreements must still be lodged with the Workplace Authority and, as before, they will start to operate upon lodgement.
On lodgement, the Workplace Authority will conduct the Fairness Test by considering both the monetary and non-monetary compensation offered, relative to what would have been payable under the relevant award. In most cases this will mean a higher rate of pay in lieu of protected award conditions that have been modified or removed.
If an agreement does not meet the Fairness Test, the Workplace Authority will provide advice to the employer and employee on why the agreement is not fair, how it could be changed to make it fair, and the amount of any back pay to compensate the employee. In these circumstances, back pay from the date the agreement was lodged will need to be made. However, the Workplace Authority does not have the power to impose changes to the Agreement if it is deemed unfair. Instead, both parties to the agreement will have 14 days to agree on how to satisfy the outcome of the Fairness Test, otherwise the agreement will be void.
If agreement cannot be reached, pre-existing employment arrangements will prevail, while new employees will be covered by the workplace arrangements that would have applied to them but for the failed agreement.
The newly named Workplace Ombudsman, [formerly the Office of Workplace Services], will conduct random compliance audits to ensure employers are meeting their legal obligations particularly with respect to young people and, will have the power to recover any unpaid back pay for disaffected employees.
For more detailed information please read: A Stronger Safety Net for Working Australians.
In our next issue we will take a look at some of the other future growth prospects for South Australia and labour market implications. | 
John Howard was at the controls of a Qantas A380 on route to America after scheduled outsourced maintenance, with George Bush and Kevin Rudd as co-pilots, when mechanical problems cause the plane to crash land, killing all on-board. At the Pearly Gates, St Peter explained that each would have to reflect on their lives before being allowed entry into Heaven.
