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Is your business workplace relations ready?
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11th May 2006 
 
 
Workplace relations legislation came into effect 27 March 2006 but many organisations have not implemented the practices because they are waiting for the final decision from the High Court (which is currently hearing submissions on the validity of the legislation) or they believe because their business has never been unionised that the changes don’t affect them.  
 
But according to Maria Saraceni, Partner at Jackson McDonald talking at the Chartered Accountants Business Forum in Perth today, Work Choices is likely to stay with the current government and there are important changes that almost every Australian organisation needs to be across and adhere to.  
 
“The new legislation is based on work / life balance philosophy. For example employees may be asked to work a public holiday which an employee can refuse under reasonable grounds. And for the first time employees have access to unlimited paid personal leave as unused leave accrues indefinitely,” said Saraceni  
 
“It is a legislation for the people and employers need to consider policies that ensure the organisation complies with the standards set down in Work Choices, but that also ensure the legislation is fair to both employer and employee,” Saraceni continued.  
 
Work Choices prescribes minimum conditions of employment:  

  • maximum of 38 ordinary hours of work per week
    •  
  • Four weeks paid annual leave
    •  
  • Five weeks paid annual leave for continuous shift workers
    •  
  • 10 days paid personal leave - sick leave, carers leave
    •  
  • Two days unpaid carer’s leave per occasion
    •  
  • Two days paid compassionate leave
    •  
  • 52 weeks unpaid parental leave
 
In a skills shortage it is especially important that employers are seen to trust employees or risk consequences such as high staff turnover or employees potentially abusing new employee based entitlements.  
 
The legislation affects 85 per cent of Australian businesses. The minimum wage is set at $12.75 per hour. In addition commission only salaries for employees are no longer lawful. Because, the minimum wage must be paid and any commission payments are to be on top of that.  
 
In unionised industries it was the unions that communicated with people. Work Choices gives primacy to employers communicating directly with employees. For every new employee, business employment contracts should be entered into which complies with Work Choices, supports the business of the employer and is in the best interests of the employee as well. Saraceni recommends that businesses seek professional advice to compile employment contracts and workplace relations policies.