Back to Previous

Employment law: a quick guide

Sarah Stowe

The majority of Australian employees are covered by the Fair Work system, which sets out minimum employment standards for all national system employers and their employees. Any prospective franchisee/employer within a national system should be aware of the following aspects of the Fair Work system.

THE FAIR WORK ACT AND THE NES

Since 2010, the Fair Work Act 2009 replaced the Workplace Relations Act 1996.  The Fair Work Act provides the basis of the Fair Work system and sets out 10 National Employment Standards (NES) applicable to all national system employers and employees including:

  1. Maximum weekly hours of 38 hours plus reasonable additional hours. 
  2. The right to request flexible working arrangements.
  3. Four weeks’ paid annual leave. 
  4. Parental and adoption leave. 
  5. Ten days paid personal/carer’s leave, two days paid compassionate leave, two days unpaid carer’s leave. 
  6. Community service leave.  
  7. Long service leave. 
  8. Public holiday entitlements. 
  9. Provision of a Fair Work Information Statement upon commencement of employment. 
  10. Notice of termination and redundancy pay.  

The Fair Work Ombudsman’s website has a fact sheet outlining further details of the NES and a copy of the Fair Work Information Statement .

THE TRIBUNAL

The Fair Work Commission (FWC) has replaced the Australian Industrial Relations Commission and is the authority empowered to set national minimum wages, resolve workplace relations disputes and consider applications relating to registered workplace agreements. 

Every year, the Minimum Wage Panel of FWC makes a decision in relation varying minimum wage rate. For the 2012/13 financial year, the adult national minimum wage rate is $15.96 per hour. Employees covered by a modern award may be entitled to higher minimum rates of pay. 

MODERN AWARDS

Thousands of federal and state-based awards have been consolidated into approximately 120 modern awards, which provide minimum employment standards (including wages) for prescribed industries and occupations.  

Each modern award prescribes minimum employer obligations relating to the payment of: minimum hourly wage rates for adults, juniors, trainees and apprentices; overtime; shift penalties; casual loading; annual leave loading; and allowances.  The majority of modern awards contain transitional provisions which affect how pay and penalty rates published in modern awards operate during the period 1 January 2010 to 30 June 2014. 

REGISTERED AGREEMENTS

Enterprise agreements (EAs) are now the only type of new registered agreement that can be made under the Fair Work system. EAs serve to replace modern awards and old registered agreements with a nominated business once they have passed the Better Off Overall Test and been approved by FWC. 

THE OMBUDSMAN

The Office of the Fair Work Ombudsman (FWO) enforces compliance with Fair Work laws. The FWI conducts workplaces audits on employers, and prosecutes employers on behalf of employees. The penalties for breaches of Fair Work laws may be up to $33,000 for a corporation and $6,600 for an individual in each case.  

ARE YOU COMPLIANT?

Ask yourself the following questions:

  • Am I using contracts and policies consistent with the NES?
  • Am I paying staff above relevant minimum wages in regard to overtime, penalties or allowances that may apply?
  • What are my obligations in relation to disciplining and dismissing staff?  What are the risks of an unfair dismissal, adverse action or discrimination claim being made?
  • What are my rights and obligations in relation to standing down workers, union right of entry and union membership?
  • Are existing arrangements with third party contractors likely to raise sham contracting issues?
  • Am I keeping proper employment records and issuing pay slips in accordance with minimum rules?

Chao Ni, Mason Sier Turnbull lawyers – Workplace Relations Practice