Happy new year and welcome to the world of Fair Work.  The second half of the new laws, namely the National Employment Standards and modern awards, came into effect from 1 January 2010.  It is important that employers quickly become familiar with their new obligations.

1.   Who does Fair Work apply to?

The short answer is ALL PRIVATE SECTOR EMPLOYERS, including sole traders, partnerships, incorporated associations and trusts.  Before 1 January 2010, non corporate and non trading employers were still largely regulated by the state industrial system and it was only trading corporations that were covered by federal workplace relations law.  However, from 1 January 2010, the Queensland government referred its industrial powers to the federal government so all employers, with the exception of the state government and local councils, are now covered by federal fair work law.

2.   National employment standards

ALL employers are subject to the NES from 1 January 2010.  The major changes are:

a.    From 1 January 2010, a Fair Work Information Statement must be given to all new employees (this can be downloaded at www.fwa.gov.au);

b.    The ability of employees to cash out annual leave;

c.    The ability of employees to request flexible workplace arrangements if they are the parents or carers of children under school age or disabled children under 18 years; and

d.    Community service leave for voluntary emergency activities such as the SES.

3.   Modern awards

It is important for all employers to check to see which of your employees are now covered by modern awards – modern awards can be accessed at www.fwa.gov.au.

There are 3 important points:

a.    There will be many employees who have not previously been subject to awards who now are;

b.    For the next 12 months, until 1 January 2011, any employer previously covered by state industrial relations law and subject to a state award:

·         will be subject to the NES; BUT

·         will not be subject to a modern award and will continue to be subject to their state award.

For instance, if a partnership employs clerical staff, they will continue to be subject to the state clerical award for the next 12 months and then the comparative federal modern award will apply. 

c.    If an employee has been subject to a pre existing state or federal award and is now subject to a modern award, the transitional arrangements in Schedule A of each modern award will apply.  This will generally mean that there will be no change in award pay or loadings until at least 1 July 2010.  A transitional process will then take place over the next 4 years to bring wages into line with award rates.