The new federal Fair Work regime will be fully implemented from 1 January 2010 with the commencement of the new National Employment Standards (“NES”) and modern award system.  Organisations should ensure they are prepared.

Employment agreements and policies and day to day practices should reflect the NES and modern award requirements from that date.  Organisations should be particularly aware of the detail of the NES which replace the current Fair Pay and Conditions Standards, eg the provisions for cashing out annual leave and requests for flexible working arrangements. 

Most if not all employees of federal system employers will be subject to a modern award from 1 January 2010.  These may be quite different to current award arrangements.  Completed and draft modern awards for your industry or relevant occupations can be accessed at www.airc.gov.au/awardmod/index.htm. Transitional arrangements apply over a 5 year phase in period where amounts currently being paid are more or less than the modern award requirements.

Private employers covered by state law, ie charitable corporations, partnerships and sole traders, should not rest easy and think that the new system will continue to not apply to them.  All states (apart from WA which has said no and Victoria which referred its industrial powers to the Commonwealth a number of years ago) have indicated their willingness to transfer their private sector industrial powers to the federal government (subject to conditions) and this process is well under way.  The Queensland government is currently in negotiations with the federal government over the detail of its referral and it is likely that this will be in place in time for 1 January 2010.  The effect will be that the private sector will almost completely be covered by federal fair work law from 1 January 2010 (subject to transitional arrangements). 

We have prepared a short guide to the major changes under the Fair Work Act which can be accessed at http://www.workplace-lawyers.com.au/download/Fair_Work_Act_Thumbnail_Guide.pdf.