Workplace Relations Update – July 2007

• Australian Fair Pay Wage Commission Decision - A Modest Increase

• All Employers Must Provide Employees With Government Fact Sheet

The Australian Fair Pay Commission (AFPC) today handed down a further two tiered minimum wage determination which applies to employers covered by the Workplace Relations Act 1996 (Cth).

Effective from the first pay period on or after 1 October 2007:

• the Standard Federal Minimum Wage increases by $0.27 per hour or $10.26 per week

• Australian Pay and Classifications Scales (APCS) increase as follows:

• for APCS's up to $700 per week, by $0.27 per hour or $10.25 per week

• for APCS's above $700 per week, by $0.14 per hour or $5.30 per week.

These increases flow on to junior employees, employees under training arrangements, employees with a disability and casual employees.

As a general rule, these increases will not apply to:

• employees who remain covered by the State systems

• employees who remain subject to pre reform certified agreements, AWAs or State agreements

• employees covered by the 5 year transitional federal award system.

In addition, the AFPC has granted:

• farm businesses in receipt of an Exceptional Circumstances Interest Rate Subsidy a deferral of 12 months for compliance with the increases

• an exemption to employers covered by the Social and Community Services Employees (State) Award 2006.

The next review will not be until July 2008 and will also be effective from October. The AFPC also indicated that it will continue with the process of creating new pay scales as part of its award and pay scale rationalisation process and will look to address junior wage rates as part of its rationalisation process which will start later this year. A submission in relation to the review of the minimum wages in the real estate sector also remains to be determined.

Employers covered by the Workplace Relations Act 1996 (Cth) will need to ensure that employees are being paid in accordance with the above increases from the first pay period on or after 1 October 2007.

It remains very important for employers to determine whether they are covered by the Workplace Relations Act 1996 (Cth). This is so because there is now a significant disparity between the minimum wage rates for employers covered by the Workplace Relations Act 1996 (Cth) and those that remain covered by the State systems.
by John-Anthony Hodgens and Mark Sant

The Federal Government's new "Fairness Test" legislation has recently been passed in Federal Parliament. As well as implementing the "Fairness Test" the legislation imposes a new obligation on all employers covered by the Workplace Relations Act 1996 (Cth).

Employers must give a copy of the Fact Sheet to:

• from 20 July 2007, all new employees within 7 days of the commencement of their employment

• by 20 October 2007, all existing employees.

Employers should include the Fact Sheet in any induction documentation so as to ensure that all new employees receive it upon commencing employment. Employers may also consider attaching the Fact Sheet to all existing employees' next pay slip so to ensure compliance.

A civil penalty of $110 applies for every employee that is not provided with the Fact Sheet within the time frame detailed above.

A copy of the "Workplace Relations Fact Sheet: Your rights and obligations" as produced by the Workplace Authority can be viewed by clicking here

Contact a member of gadens lawyers workplace relations team to obtain more information about how the new decision may impact on your organisation.
by Dan Feldman and Mike Flynn

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.