National Workplace Lawyers : Employment Lawyer : OHS Lawyer : Unfair Dismissal : Discrimination Lawyer : Industrial Lawyer

Abbott Government tables its first Bill of Fair Work Act amendments in Parliament

The Abbott Government has tabled the Fair Work Amendment Bill 2014 (the Bill) as its first raft of amendments outlined in the Coalition's IR Policy.

The proposed amendments mainly concern:

  • unpaid parental leave additional periods;
  • payment provisions for annual leave;
  • Individual Flexibility Agreement (IFA) terms under modern awards and enterprise agreements;
  • greenfield agreements;
  • transfer of business between associated entities;
  • protected action ballot orders;
  • right of entry provisions; and
  • Fair Work Commission (FWC) hearings and conferences.

The amendments are summarised in the table below:

Current provision under the Fair Work Act Proposed amendment under the Bill
Unpaid parental leave
  • An employee who takes unpaid parental leave may request an additional period of unpaid parental leave, up to a maximum of 12 months.

 

  • In addition to the existing obligation, an employer must not refuse an employee's request for an additional period of unpaid parental leave without first giving the employee a reasonable opportunity to discuss the request.
Annual leave
  • The Fair Work Act 2009 (the Act) provides that if an employee, upon termination of employment has a period of untaken paid annual leave, the employer must pay the employee the amount that would have been payable had the employee taken that period of leave.

  • An employee may accrue and take annual leave whilst on a period of paid workers' compensation if the relevant compensation law permits it.

  • Annual leave loading (or other amount addition to the employee's base rate of pay) is only payable on termination of employment if a relevant modern award or enterprise agreement provides for the payment on termination.

 

  • An employee will not be able to take or accrue any annual or other type of leave while the employee is absent from work and in receipt of workers compensation regardless of the workers' compensation law that applies to them.
IFA terms under a modern award
  • Employers and employees must:
  1. genuinely agree to an IFA in writing, and

  2. the employer must ensure that the employee is better off overall had the IFA not been entered into.

  • An IFA must specify how the IFA may be terminated.
  • Requires the employer to ensure that employees complete a 'genuine needs' statement outlining why the employee believes that the IFA meets their genuine needs and results in them being better off overall had no IFA been entered into.


 

  • The Bill clarifies the Modern Awards Review 2012 - Award Flexibility decision in that an IFA may be terminated by either party on 13 weeks' notice in writing or at any time by agreement in writing.
  • Further, non-monetary benefits may be taken into account in determining if the employee is better off overall.

  • If at the time of entering into an IFA the employer reasonably believed that it had complied with legislative requirements for an IFA, and the IFA does not comply with the legislative requirements, the employer will not be subject to a civil penalty.

IFA terms under an enterprise agreement (EA)
  • An IFA may be terminated by agreement or  by either party giving the required written notice (not more than 28 days' notice).

  • An IFA may be terminated with 13 weeks notice in writing or at any time by agreement in writing.

  • Requires the employer to ensure that employees complete a 'genuine needs' statement outlining the employee believes that the IFA meets their genuine needs and results in them being better off overall had no IFA been entered into.

  • Non-monetary benefits may be taken into account in determining if the employee is better off overall.

Greenfield enterprise agreements (GEA)
 
  • If after the employer has notified the union that it wishes to negotiate a GEA, and it has been unable to reach agreement, or has given the union a reasonable opportunity to sign the GEA after the 3 month negotiation period has elapsed, the employer may apply to the FWC for approval of the GEA, and from the date of that application, the GEA is deemed to be approved.

  • Good faith bargaining obligations will apply to a GEA during the 3 month negotiating period.

  • When approving a GEA, the FWC may have regard to the pay and conditions of employees in the relevant industry for equivalent work in the relevant geographical area.

Transfer of business
  • As a general rule, if there is a transfer of business, the old employer's EA or other relevant industrial instrument continues to cover the employee when the old employer's employee commences employment with the new employer.
  • The relevant industrial instrument (eg modern award or enterprise agreement) will cover the employees of the old employer if the new employer is an associated entity of the old employer and the relevant industrial instrument covers the type of work to be performed by the employee for the new employer.
Protected ballot action orders
 
  • Unless either the employer has initiated a bargaining period or, agreed to bargain or the union has obtained a majority support determination, scope order or low-paid authorisation, an application for a protected ballot order cannot be made.
Right of entry
  • Employers are required to facilitate transport and accommodation arrangements for union entry to worksites in remote locations.

  • Unions may enter premises to hold discussions if an employee who performs work on the premises, is entitled to be represented by the union and the employee wishes to participate in those discussions.

 

 

  • Employers may make an application to the FWC to deal with a dispute regarding the frequency of permit holders' visits to the workplace.

  • The Bill proposes to repeal this requirement.

 

 

  • Unions will only be able to enter premises for the purposes of discussion if an EA applies to the workplace and the union is covered by that EA, or a union member or if an employee the union is entitled to represent, invites the union on site. The FWC may issue an invitation certificate, which enables employees to anonymously invite the union on site.

  • The threshold requirement that there must be an unreasonable diversion of the employer's critical resources in such disputes will be repealed.

Fair Work Commission hearings and conferences
 
  • The FWC will be able to dismiss unfair dismissal applications without holding a hearing, where an application is misconceived, as long as the parties have been provided with an opportunity to make submissions on the matter.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Bill is currently before the House of Representatives and has been referred to the Senate Education and Employment Legislation Committee who are due to report back on 5 June 2014. It remains to be seen if the Bill will be passed in its current or an amended form.

We will update our website as the Bill progresses, but in the meantime, if you would like more information, please contact National Workplace Lawyers on +61 2 9233 3989. 

National Workplace Lawyers

Note — this is for information purposes only and does not purport to be comprehensive or to render legal advice.

 

17 March 2014 back to news feed  |  back to top