The first phase of the Labor Government's IR Reforms has formally commenced with the enactment of the Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008. 

In summary, this means that:

• No new AWAs can be made.  AWAs made and lodged before the commencement date (i.e. 28 March 2008), or made before the commencement date and lodged within 14 days after that date, will continue to operate until terminated or replaced.
• Employers using AWAs as at 1 December 2007, can make a new type of individual agreement with their employees called an Interim Transitional Employment Agreement ("ITEA"), until 31 December 2009.
• A new "no-disadvantage test", which replaces the "fairness test", now applies to ITEAs and all collective agreements made after the Act's commencement.  In turn, "protected award conditions" have been removed since the whole award is to be used as the basis for the no-disadvantage test.

The commencement and termination of agreements has been changed so that:

• ITEAs for existing employees, and collective agreements, will commence 7 days after the Workplace Authority Director issues a notice that the agreement has passed the no-disadvantage test;
• Collective agreements can no longer be unilaterally terminated.  Instead the AIRC may terminate a collective agreement on application, if satisfied that the termination would not be contrary to the public interest.
• The restrictions on the incorporation of terms from other instruments into agreements has been abolished. 
• Pre-reform collective agreements may be extended and varied on application to the AIRC.
• NAPSAs will now continue to operate until 31 December 2009 instead of ceasing to operate on 27 March 2009.
• The previous requirement for employers to provide new employees with the Workplace Relations Fact Sheet has been removed.
• The Award modernisation process by the AIRC is to now commence. This process is to be completed by 31 December 2009.

In the meantime, the Government is continuing work on developing its proposed 10 National Employment Standards ("NES"), which is to replace the current Australian Fair Pay and Conditions Standard.  The NES, together the modernised award system, will form a new safety net for employees from 1 January 2010.

The matters to be dealt with by the 10 NES are:

• Hours work
• Parental leave
• Flexible work for parents
• Annual leave
• Personal, carers and compassionate leave
• Community service leave
• Public holidays
• Information in the workplace
• Notice of termination and redundancy
• Long service leave

In February this year, the Government released an exposure draft of the NES for public comment and submissions (which are now closed).  The Government is now in the process of considering those submissions, and the finalised NES are to be included in the Government's second phase of legislative reforms which is to be introduced into Parliament later this year.

The NES will be complemented by the new "modern awards".  The modern awards will contain minimum terms and conditions for particular industries and occupations in relation to 10 allowable modern award matters.  Those matters include:

• Minimum wages
• Type of employment
• Arrangements for when work is performed
• Overtime rates
• Penalty rates
• Annualised wage or salary arrangements
• Allowances
• Leave, leave loadings and arrangements for taking leave
• Superannuation
• Procedures for consultation, representation and dispute settlements.

In relation to long service leave, the Government has stated that it will be developing a national long service leave entitlement under the NES, and until then, long service leave entitlements derived from various sources will be protected. 

We will keep you informed about these reforms.  However if you would like to discuss any of the proposed changes and how they will effect your business please do not hesitate to contact Zita Beuth, Associate on (07) 3895 8011.