The Fairness Test

New Requirements For Agreements

Employers contemplating entering into Workplace Agreements under the federal Workplace Relations Act 1996 (the Act) need to be aware of recent changes to the Act which provide that fair compensation must be afforded to an employee if "protected conditions" are modified or removed.

Prior to the enactment of the above changes to the Act the protected conditions listed below could be removed or modified if the applicable AWA or Collective Agreement made specific reference to such. In such circumstance it was not necessary for the Agreement to provide for any compensation for the loss or modification of protected conditions. This situation has been reversed by the recent amendment to the Act introducing what is called the "Fairness Test".