The Federal Government on 4 May announced significant changes to the rules governing workplace agreement-making.
A new "fairness test" will be applied to all Australian Workplace Agreements (AWAs) and Collective Agreements lodged on or after 7 May 2007 (ie next Monday).
The test will apply only to agreements for workers who are paid less than $75,000p.a.
If an agreement removes or modifies the protected award conditions the employee will be entitled to "fair" compensation. The protected award conditions are:
- penalty rates, including work on public holidays and weekends;
- shift and overtime loadings;
- monetary allowances;
- annual leave loadings;
- public holidays;
- rest breaks; and
- incentive based payments and bonuses.
The Office of the Employment Advocate will be renamed the Workplace Authority. This body will conduct the fairness test by considering all monetary and non-monetary compensation the employee receives under the agreement, compared to the Award.
If the agreement does not pass the fairness test, the Award will apply until an agreement is formed that does pass the test.
The parties will be given 14 days to agree how to vary the agreement to make it fair. If the necessary changes are not made the agreement will be void. In these circumstances the Award would apply.
A pre-lodgment checking service will be available.
