Fair Work Australia and Unfair Dismissal
Following a decade long boom and the subsequent crash in the share market business must now prepare for the most significant changes to workplace laws in many years. The changes will result in more complexity for employers with the potential for increased costs as a result of the new modernised award system, the reintroduction of unfair dismissal laws and substantially increased powers for unions in the workplace.
The Fair Work Act has wide ranging implications for businesses with less than 100 employees. The three key changes that will come into effect on the 1st July 2009 are the changes to Unfair Dismissal Laws, Agreement Making and Good Faith Bargaining and the Federal System of IR will be operated and overseen by one body known as 'Fair Work Australia' (FWA).
Re-introduction of Unfair Dismissal Laws
Small businesses will be required to comply with a ‘Small Business Fair Dismissal Code’ which sets out a fair process in order to ensure that the dismissal of an employee is fair in all the circumstances. The Code will be complied with if a warning based on a valid reason about the employee’s conduct or capacity has been given and an employee has been given reasonable opportunity to rectify the problem or improve their performance. This means that you must ensure there is due process so it is crucial to review your policies and procedures to apply with the Code.
Agreement Making and Good Faith Bargaining
The FWA will have greater powers in relation to the bargaining process between employees, their unions and employers. The FWA will ensure that the parties:
- attend and participate in meetings at reasonable times;
-
disclose relevant information in a timely manner, subject to appropriate protection for commercial in confidence information;
- respond to proposals made by other parties in a timely fashion;
- give general consideration to proposals and provide reasons for responses and
- refrain from capricious or unfair conduct
Future changes also include proposed changes to increase National Employment Standards from the current 5 up to 10, and a new modern rewards system likely to come into effect on the 1st January 2010. The new modern awards will replace existing awards and subsequently the provisons that previously applied will change - there will be serious penalties for non-compliance with award obligations.
For more information on how thresholdHR can help provide systems and process to help reduce the stress associated with these changes call 0418 144012 to organise a FREE HR diagnostic.