New Fair Work Act effective New Years Day 2010...
If you are the owner of a small to medium enterprise (SME) in Australia, it is almost time to ensure you attend to the updated employment laws that go into effect on January 1st—New Year’s Day. The new National Employment Standards and the new Modern Awards will bring several drastic changes to the way small businesses deal with their employees, as well as the prospect of legal action by the government for non-compliance. With just a few days left before 2010, it would be advantageous for you to familiarise yourself with the important points of each of the major points of the new laws, which apply to employees with guaranteed earnings of less than $100,000.
Although the details of the laws vary depending on the size of your business and your industry, the National Employment Standards addresses ten important components:
- The maximum amount of working hours per week.
- The right of the employee to request flexible working arrangements.
- The terms of entitlements for parental leave and similar related leaves
- The terms of annual leave
- The terms of personal carer’s leave and compassionate leave
- The terms of community service leave
- The terms of long service leave
- The description of public holidays
- How to give notice of termination and description of redundancy pay
- Fair Work Information Statement Provisions
You will find the greatest changes for employers and employees in the flexible work arrangements and annual leave requirements. The changes in the notice of termination and pay redundancy effect businesses with more than 15 employees. You will also be required to give a written copy of the Fair Work Information Statements to all of your employees, outlining the details of the ten employment standards, the Modern Awards provisions, information about agreement-making, rules about freedom of association, and the role of “Fair Work” in Australia.
The Government is also making major changes to the Australian Awards System that, depending on your particular industry, could contain ten additional minimum conditions of employment. The Modern Awards summarise various employment issues such as minimum wages, overtime and penalty rates, superannuation, work performance arrangements, additional leave regulations, employment types, and procedures to follow for consultation, representation and settlement of disputes.
The Modern Awards reduce the number of awards from 2,500 to about 120 and are intended to assist both employees and employers to tailor the awards to their particular circumstances. Any special arrangements agreed upon would have to pass the “Better Overall Test” which expects that the employee is better off overall.
With only a few days left until the new laws take effect, there is one more important set of rules and regulations you’ll have to check by answering these questions for your SME:
- Which Awards apply to you and your employees?
- How will you know if you are in compliance?
- What records will you have to keep and what changes must be made to your employees’ pay slips?
- What are your options if you make Enterprise Agreements with your employees?
The government has set up an agency called Fair Work Australia where you can find more detailed information, forms, and contact information for the Fair Work Ombudsman. The Bean Countess has a specialist ready to help you sought out all of your HR issues. Please contact us for assistance.
Happy New Year!
The Bean Countess
