Policy feedback - April 2017 |
Changes to the Fair Work Act - Pay Protection Bill
We are preparing a submission to the Fair Work Commission on the proposed changes to the Fair Work Act via the Pay Protection Bill.
If you currently use an Enterprise Agreement, or have used one in the past, we would greatly appreciate your opinion.
Background
The Fair Work (Pay Protection) Bill 2017 (Cth) makes several amendments to the Fair Work Act 2009 that, if passed, will have serious implications for employers using Enterprise Agreements approved after 1 January 2010.
If you currently use an Enterprise Agreement, or have used one in the past, we would greatly appreciate your opinion.
Background
The Fair Work (Pay Protection) Bill 2017 (Cth) makes several amendments to the Fair Work Act 2009 that, if passed, will have serious implications for employers using Enterprise Agreements approved after 1 January 2010.
- Section 206 of the FW Act states that the ‘base rate of pay’ in an enterprise agreement must not be less than the base rate of pay payable under an applicable modern award.
- The ‘base rate of pay’ is the rate of pay payable for ordinary hours of work but does not include incentive-based payments, bonuses, loadings, monetary allowances, overtime or penalty rates, and any other separately identifiable amounts.
- Often these additional entitlements are the subject of enterprise bargaining.
- Currently, there is no statutory requirement that these entitlements not be less than the rates payable under an applicable modern award (albeit enterprise agreements of course need to pass the better off overall test).
Implications
- The Bill proposes to change the wording in section 206 from ‘base rate of pay’ to ‘full rate of pay’.
- The meaning of ‘full rate of pay’ includes incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates, and any other separately identifiable amounts.
- The effect of this change would mean that the ‘full rate of pay’ under an enterprise agreement cannot, at any point, fall below the ‘full rate of pay’ due under a modern award.
- This will mean that the penalty rate for weekend work under an enterprise agreement cannot be less than the rate of pay due under a modern award.
Your Input
This Bill will have serious implications for retailers which operate under an enterprise agreement which offsets higher base rates for lower weekend penalties rates or a lower casual loading.
If you currently use an Enterprise Agreement, or have used one in the past, we would greatly appreciate if you could share your opinion on the these changes by completing this short 2 minute survey.
Survey closes 6pm Monday 24 April.
You are also welcome to share your thoughts by emailing us directly at law@nra.net.au
This Bill will have serious implications for retailers which operate under an enterprise agreement which offsets higher base rates for lower weekend penalties rates or a lower casual loading.
If you currently use an Enterprise Agreement, or have used one in the past, we would greatly appreciate if you could share your opinion on the these changes by completing this short 2 minute survey.
Survey closes 6pm Monday 24 April.
You are also welcome to share your thoughts by emailing us directly at law@nra.net.au