Fair Work Act 2009
The Fair Work Act 2009 is a significant piece of legislation in Australia that restructured the country's employment framework following widespread criticism of the previous Workplace Relations Amendment (WorkChoices) Act of 2005. Introduced to address concerns that WorkChoices disproportionately favored employers, the Fair Work Act aimed to establish a more balanced and equitable system for both employees and employers. It created two key governing bodies: the Fair Work Ombudsman, which investigates violations of labor laws, and the Fair Work Commission, which administers the Act and updates employment entitlements.
Under the Fair Work Act, a national workplace relations system was established, which includes minimum wage standards, National Employment Standards (NES), and regulations regarding employee contracts. The NES covers critical areas such as annual leave, parental leave, and flexible working arrangements. The Act also introduced modern awards, which provide guidelines for employee entitlements and workplace conditions.
Additionally, the Fair Work Act laid the groundwork for various types of work contracts, including single-enterprise and multi-enterprise agreements, ensuring clear rights and responsibilities. Overall, the Fair Work Act 2009 sought to promote economic prosperity while fostering social inclusion, reflecting a response to public demand for a fairer approach to workplace relations in Australia.
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Fair Work Act 2009
The Fair Work Act 2009 was an employment overhaul instituted by the Australian government. The numerous effects of the overhaul were slowly phased in through 2014. Many of the changes in the Fair Work Act 2009 can trace their roots to the Workplace Relations Amendment (WorkChoices) Act, which was passed in 2005. Although WorkChoices had many noble goals, many workers believed that it hurt the economic climate. They argued that it gave too much negotiating power to employers and removed negotiating power from employees. The act also was considered too complicated and, therefore, too difficult for employers to properly implement.
In response to these claims, WorkChoices was replaced by the Fair Work Act 2009. The act featured the creation of two new government agencies, the Fair Work Ombudsman and the Fair Work Commission, which were tasked with the administration of new policies. These policies include maintaining minimum wages, governing employee contracts, and brokering disputes between employees and employers.
Background
In 2005, Australia's coalition government passed the Workplace Relations Amendment Act. The act is commonly referred to simply as "WorkChoices." It was designed to provide a more flexible and fairer system of workplace relations.
Proponents of WorkChoices believed that it would help achieve numerous changes that would benefit both workers and their employers, including higher wages, reduced unemployment, higher productivity, and a better balance between work life and family life. Those who wrote the act planned to accomplish these goals by removing the six workplace jurisdiction systems then present in Australia and replacing them with a single national workplace relations system that would apply to most Australian employees. A new governing body, the Australian Fair Pay Commission (AFPC), would handle many specific legislative challenges within the new system. Most prominent among these challenges was deciding appropriate minimum wages for various classes of workers. WorkChoices also would encourage employers and employees to directly negotiate pay while still maintaining a national minimum standard for parental leave, sick leave, and other forms of employee compensation.
WorkChoices was heavily criticized by unions and other worker organizations. They believed that it placed too much power in employers' hands and not enough in workers' hands. Additionally, many workers argued that the act disproportionately hurt small business employees and low-income workers.
WorkChoices received limited support from non-coalition parties, making it vulnerable to future reform. Additionally, many experts and laborers believed that it failed to deliver on most or all of its goals. The legislation itself was commonly viewed as overly complicated, inconsistent, and difficult for both employers and employees to implement in their workplaces. Some Australian states argued against the act, claiming that it was unconstitutional and questioning its legal legitimacy. In many cases, these states were backed by unions who opposed WorkChoices. Over time, more individuals came to view WorkChoices negatively. They demanded that the act be repealed and replaced with a more suitable alternative.
Overview
In 2009, the Australian government passed the Fair Work Act 2009. The act was designed to replace WorkChoices, which had become increasingly unpopular throughout Australia. It was heavily influenced by public outrage against the failures of WorkChoices.
The Fair Work Act 2009 was designed to accomplish many of the same goals as WorkChoices, including setting the standards for employment throughout Australia. Under the Fair Work Act 2009, these standards are known as the national workplace relations system. The national workplace relations system is designed to promote economic prosperity and social inclusion. It sets out clear, definitive rights and responsibilities for both employees and employers, establishes minimum wages, sets National Employment Standards (NES), and provides methods to ensure that all relevant states and parties comply with the act.
The NES are composed of ten parts. Each part is standardized by the Fair Work Act 2009. These include fair work statements, public holidays, annual leave, long service leave, parental leave, personal/compassionate leave, community service leave, work hours, the right to request flexible working arrangements, and laws regarding notices of termination.
The Fair Work Act 2009 also covers modern awards, which are sets of guidelines and worker entitlements within which employers must work when hiring. They include many of the same stipulations as the NES, such as minimum wages, flexible working arrangements, and leave. However, they also include measures for dispute settlement, leave loading, classifications, workplace breaks, work hours, entitlements for when an employee is made redundant, and other aspects of employee contracting.
None of these standards were set in stone with the passing of the Fair Work Act 2009. Instead, the act created the Fair Work Commission and the Fair Work Ombudsman. The Fair Work Commission is designed to administer the Fair Work Act 2009, including updating entitlements and minimum wages as necessary, serving as a forum and tribunal for claims, and releasing information about any new rulings or changes to the public. The Fair Work Ombudsman is tasked with investigating any violations of the Fair Work Act 2009 and initiating legal proceedings against the perpetrators of the infractions. Many of these powers and responsibilities were taken from the Australian Industrial Relations Commission (AIRC). The powers and effects of the act were gradually phased in through 2014.
The Fair Work Act 2009 governs several types of work contracts. These include single-enterprise agreements, multi-enterprise agreements, and greenfields agreements. Single-enterprise agreements are work contracts made between a single employee, who is already employed at the time the agreement is made, and a single employer or joint venture. It may include employers authorized as single-interest employers by the Fair Work Commission. Multi-enterprise agreements refer to a single-enterprise agreement that applies identically to multiple employees. Greenfields agreements refer to agreements made between an employer and an individual or group that has not yet been employed. They are common between unions or other worker organizations and a prospective employer.
All enterprise agreements must cover any deductions that will be removed from an employee's pay, the relationship between an employee and any employee organizations, the relationship between the employer and the employee, and the functional way in which the contract will operate. It must include an expiration date, which can be no longer than four years after the agreement was approved; a dispute settlement procedure; a flexibility term for the purpose of creating individual flexibility arrangements; and a consultation term that allows employees to consult their employers on any major workplace changes that affect them.
Bibliography
"Enterprise Bargaining." Fair Work Ombudsman, www.fairwork.gov.au/ArticleDocuments/723/Enterprise-Bargaining.pdf.aspx?Embed=Y. Accessed 12 Feb. 2018.
"Fair Work Act 2009 (Cth)." Legal Services Commission of South Australia, www.lawhandbook.sa.gov.au/ch18s03s01.php. Accessed 12 Feb. 2018.
"Fair Work Ombudsman." Australian Government, www.fairwork.gov.au/. Accessed 12 Feb. 2018.
Fitz Gerald, Mike. "The Fair Work Act 2009 – What Does It Mean for Employers," Fitz Gerald Strategies, www.fitzgeraldstrategies.com.au/the-fair-work-act-2009-what-does-it-mean-for-employers/. Accessed 12 Feb. 2018.
"History." Fair Work Commission, 31 Mar. 2016, www.fwc.gov.au/about-us/history. Accessed 12 Feb. 2018.
"Legislation." Fair Work Ombudsman, www.fairwork.gov.au/about-us/legislation, Accessed 12 Feb. 2018.
"What Is the Fair Work Act?" EmploySure, 23 Aug. 2017, employsure.com.au/guides/fair-work-australia/what-is-the-fair-work-act/. Accessed 12 Feb. 2018.
"Work Choices Legislation in Australia." Centre for Public Impact, www.centreforpublicimpact.org/case-study/work-choices-legislation-australia/. Accessed 12 Feb. 2018.