Implications Of The Fair Work Act In A Contracting Economy

Article by Rebekah Fryer, Associate

It is plainly obvious that many of the changes introduced by the Fair Work Act 2009 and the related legislation will impose additional direct and indirect costs on employers in the federal industrial relations system.

The ALP industrial relations reform agenda was first announced more than two years ago, at a time when no one ever contemplated the 'global financial crisis' and the end of Australia's economic boom was unimaginable. Given the current economic climate there are many who question whether Australian employers can now afford the changes that the new legislation will bring.

The Fair Work Act was passed earlier this year and will, for most practical purposes, commence operating in two phases from 1 July 2009. Some of the related legislation has already commenced and parts of the Act will commence as soon as 26 May, although none of the transitional legislation has actually passed through the parliament.