The New Workplace System

January 1, 2010 | Posted by Rose Walsh

The Fair Work Act 2009 (Cth) ("the Act") introduced a number of changes to the Australian workplace.  The changes tend to favour employees over employers and small business operators.

The Act began on 1 July 2009 and changes which commenced from that date included new collective bargaining arrangements, rules allowing rights of entry of unions, and new unfair dismissal laws which saw the reintroduction of unfair dismissal claims for workers in businesses with fewer than 100 employees.

Some other significant changes did not commence until 1 January 2010.  These changes included new minimum standards, termed National Employment Standards or NES which are administered by Fair Work Australia and new streamlined modern awards.

Read more on the National Employment Standards.  New requirements include flexible working arrangements for parents, redundancy pay and employers having to provide all new employees with a Fair Work Information Statement which gives details of employees entitlements under the new system.

All employers need to review their employment contracts, systems, procedures and policies to make sure that they comply with the new laws.

Flexible working hours for parents - a new minimum standard for Victorian workers?

Of the National Employment Standards "Requests For Flexible Working Arrangements" has the potential to generate the greatest level of anxiety for employers.  This need not be the case.  There is no penalty for refusing a "request" although it is expected that compliance will be achieved by virtue of an employer's fear of adverse publicity.  Despite this employers must get the procedure right.  Failing to do so can result in a fine.

Victorian employers should already be familiar with flexible work arrangements as Victorian employees have had rights with respect to this since the commencement on 1 September 2008 of the Victorian Government's amendments to the Equal Opportunity Act 1995 (Vic). As a result of these amendments an employer in Victoria must not unreasonably refuse to accommodate an employees' request for flexible working arrangements with respect to their parent or carer responsibilities.  These provisions are broader than the NES as they are not limited to employee's who have the care of children under school age and an employer who is found to have acted unreasonably may be required to provide flexible working arrangements, pay compensation to an employee or provide some other remedy that redresses the situation.

The introduction of the NES and in particular the requirement to provide new employees with a Fair Work Information Statement is likely to result in employee's becoming increasingly aware of their rights in this area and may see a dramatic increase in requests for flexible working arrangements.

Both employees and employers need to understand the new workplace system.  Employees so as to take advantage of the benefits the new system offers them and employers to make sure that all their employment contracts, policies and procedures can stand up to scrutiny under the new arrangements.

For more information or assistance please do not hesitate to contact Rose Walsh.

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