What is an Australian Workplace Agreement?
The new WorkChoices legislation amends the Workplace Relations Act 1996, and covers all ’constitutional corporations’ [trading, financial and foreign corporations], under a new federal employer system. The relevance of these legislative changes to employers in Australia is that most incorporated bodies including, all proprietary companies are considered "trading corporations" and are therefore, respondent to these new laws. Under the legislation, any federal award remains binding, but some provisions cease to be allowable and any pre-existing federal agreement, for example EBA’s, remain binding but can be replaced by a new workplace agreement at anytime.
An Australian workplace agreement is an individual written agreement between an employer and an employee that sets out terms and conditions of employment. Once an Australian workplace agreement starts to operate, it replaces any award or collective agreement that would otherwise apply to the employee.
An Australian workplace agreement overrides employment conditions in state or territory laws, if the Australian workplace agreement mentions those conditions. However, an Australian workplace agreement cannot override state or territory laws which cover occupational health and safety, workers’ compensation or training arrangements. You can learn more about Australian workplace agreements at the Australian Government Office of the Employment Advocate at http://www.oea.gov.au/
There are statutory minimum provisions of Fair Pay and Conditions covering wages, hours and annual, personal and parental leave that must be included in workplace agreements. However, on the statutory provision of 4 weeks annual leave, a workplace agreement can provide for up to 2 weeks of this leave to be "cashed out" annually. You can learn more about statutory minimum provisions of Fair Pay and Conditions at http://www.oea.gov.au/graphics.asp?showdoc=/employers/fairpaystandard.asp
Prohibited content for agreements include:
- renegotiation of contracts
- restrictions on use of contractors or labour hire workers
- any "remedy" for unfair dismissal
- secrecy provision re content of agreement
- matters not pertaining to employment relationship
Moreover, there is very prescriptive requirements about what cannot be included with respect to union involvement in workplace agreements. You can learn more about what constitutes prohibited content in Australian workplace agreements at http://www.oea.gov.au/graphics.asp?showdoc=/employers/prohibitedContent.asp#index3
Australian workplace agreements can be registered online using the OEA’s online lodgement system at http://www.oea.gov.au/graphics.asp?showdoc=/employers/agreementOverview.asp and selecting the Workplace Agreements Online hyperlink. Registration of workplace agreements is automatic and there is no certification or approval process, in other words, once an Australian workplace agreements is lodged it is enforceable. However, employers need to be careful, as penalties of up to $33,000 can be imposed for including prohibited content in workplace agreements.
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