Short Answer question (500 words) IN 6 hours

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Minimum Employment Standards

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Explain the rationale for minimum standards

which workers do the minimum standards provisions in the Fair Work Act cover?

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The Fair Work Act 2009 (Cth)

Current scheme is Fair Work Act 2009 (Cth)

Under the Fair Work Act minimum standards provisions mostly apply to employees of national system employers including employees of foreign, trading and financial corporations; commonwealth public sector employees; flight crew officers, maritime employees and waterside workers employed by a business operating in interstate and overseas trade or commerce; all employees in the Australian Capital Territory and the Northern Territory; All private sector employees in referring States: s14, s13

Parental leave and notice of termination – covers all Australian employees

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Devices setting minima

Statutory provisions

National Employment Standards (NES) in the Fair Work Act 2009

Modern Awards

Comparison of award vs statutory regulation

Compare and contrast the setting of minimum standards in awards to setting minimum standards in statutory provisions. Which mechanism is better? Why is it better?

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National Employment Standards under the Fair Work Act 2009 (Cth)

Maximum hours of work

Right to request flexible work arrangements

Annual leave

Personal leave

Unpaid parental leave

Community service leave

Long service leave (limited entitlement)

Public holidays

Notice of termination and redundancy pay

Fair Work Information Statement

Unpaid domestic violence leave

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What is the standard for hours of work under the Fair work Act?

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s62 Maximum weekly hours

Maximum weekly hours of work

(1) An employer must not request or require an employee to work more than the following number of hours in a week unless the additional hours are reasonable:

(a) for a full‑time employee—38 hours; or

(b) for an employee who is not a full‑time employee—the lesser of:

(i) 38 hours; and

(ii) the employee’s ordinary hours of work in a week.

Employee may refuse to work unreasonable additional hours

(2) The employee may refuse to work additional hours (beyond those referred to in paragraph (1)(a) or (b)) if they are unreasonable.

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s63 Modern awards and enterprise agreements may provide for averaging of hours of work

(1) A modern award or enterprise agreement may include terms providing for the averaging of hours of work over a specified period. The average weekly hours over the period must not exceed:

(a) for a full‑time employee—38 hours; or

(b) for an employee who is not a full‑time employee—the lesser of:

(i) 38 hours; and

(ii) the employee’s ordinary hours of work in a week.

(2) The terms of a modern award or enterprise agreement may provide for average weekly hours that exceed the hours referred to in paragraph (1)(a) or (b) if the excess hours are reasonable for the purposes of subsection 62(1).

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s64 Averaging of hours of work for award/agreement free employees

(1) An employer and an award/agreement free employee may agree in writing to an averaging arrangement under which hours of work over a specified period of not more than 26 weeks are averaged. The average weekly hours over the specified period must not exceed:

(a) for a full‑time employee—38 hours; or

(b) for an employee who is not a full‑time employee—the lesser of:

(i) 38 hours; and

(ii) the employee’s ordinary hours of work in a week.

(2) The agreed averaging arrangement may provide for average weekly hours that exceed the hours referred to in paragraph (1)(a) or (b) if the excess hours are reasonable for the purposes of subsection 62(1).

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Hours of Work

38 hours per week (ordinary hours) plus reasonable additional hours for a full-time employee: s62(1) of the Fair Work Act

Modern Award ordinary hours currently = 38 hour per week

Awards and agreements can be used to average hours over a period of greater than a week: s63

Award/Agreement free employees can have their hours averaged over up to 26 weeks: s64

For what factors must be considered to determine what is ‘reasonable’ additional hours see s62(3).

It is explicitly provided that an employee may refuse to work unreasonable additional hours: s62(2) Fair Work Act

MacPherson v Coal & Allied (2009) 189 IR 50

Premier Pet v Brown (no2) [2013] FCA 167 (5 March 2013)

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Questions

What is the annual leave standard under the Fair work Act?

How do arrangement for cashing out annual leave operate?

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Annual leave

NES entitlement to 4 weeks annual leave per year: s87 Fair Work Act

Annual leave accumulates from year to year: s87(2).

An employer can direct an employee to take annual leave where it is reasonable to do so: s94(5)

‘Cashing out’ of annual leave allowed in certain circumstances

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Questions

What is the entitlement to personal leave under the Fair Work Act?

what is the entitlement to unpaid carers leave?

What is the entitlement to compassionate leave?

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Personal/carer’s leave

10 days’ paid personal/carer’s leave for each year of service: s96, s97 Fair Work Act

Mondelez v AMWU[2020] HCA 29 (13 August 2020) – paid personal leave to be paid at a rate based on ordinary hours of work

Personal leave accumulates from year to year: s96(2) Fair Work Act

2 days’ unpaid carer’s leave for each permissible occasion: s102, s103

2 days’ paid compassionate leave: ss104- 106 Fair Work Act

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Questions

What is the current entitlement to unpaid parental leave?

Who is eligible for unpaid parental leave?

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Unpaid Parental Leave

NES employee entitlement to 12 months unpaid parental leave: ss70 Fair Work Act

Each parent may take parental leave:s72

Right to request further 12 months unpaid leave if partner has not taken leave: s76

FW Amendment Act 2015 inserted new s76(5A) into FW Act

All Australian Employees with 12 months continuous service eligible for unpaid parental leave: s67, s743, s744

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Who is eligible for the parental leave payment?

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Paid Parental Leave

Paid Parental Leave Act 2010 (Cth)

Paid at federal minimum wage rate for 18 weeks.

A carer must have undertaken paid work for at least 10 of the 13 months preceding birth or adoption without a break of more than 12 weeks.

High income earner exclusion

Paid Parental Leave Amendment (Work Test) Act 2019 – (break of 12 weeks now allowed).

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Question

What is the right to request flexible work under the Fair work Act?

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Right to request flexible work arrangement

The following employees (with 12 months service) may request a change to work arrangement s65:employees with caring responsibilities ;parents or guardians of children that are school age or younger ;employees with disability ; employees who are 55 years or older ; employees who are experiencing family violence or who are caring or supporting a family or household member who is experiencing family violence

Employers can refuse request on reasonable business grounds: s65(5)

The employer must provide written reasons for a refusal: s65(6)

An employer refusal cannot be challenged in court: s44(2)

FWC report November 2012

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Notice of Termination and Redundancy Pay

Requirement for notice of termination – up to 5 weeks’ notice depending on employees’ age and length of service: s117

Severance Pay upon redundancy up to 16 weeks’ pay based on length of service: s119.

Redundancy pay can be reduced by the FWC where employer obtains for the employee other acceptable employment (s120): this is determined objectively: Spotless Services Australia Limited t/as Alliance Catering - [2016] FWC 4505; Australian Chamber of Manufactures v Derole Nominees Pty Ltd [1990] AIRC 980; (1990) 140 IR 123

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Other Standards

Information Statement: s125 Fair Work Act

Public Holidays: see especially s114-s116

Community Service Leave: see especially s108-s109

Long service leave

Unpaid domestic violence leave : s106A-106C [added by Fair Work Amendment (Family and Domestic Violence Leave) Act 2018 (Cth).]

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Award Modernisation

Award Modernisation commenced pursuant to provisions in the Workplace Relations Amendment (Transition to Forward with Fairness) Act 2008 (Cth)

Minister requested modern awards under s576C of the Workplace Relations Act 1996

Fair Work Commission has power to make modern awards under Part 2-3 of the Fair Work Act

Modern awards objective under s134 of the Fair Work Act

4 yearly review of modern awards - penalty rates (2017) 265 IR 1

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Who do the modernised awards apply to?

What content can modern awards include?

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Who do modern awards cover?

Awards may apply on a ‘common rule’ and/or industry basis to classes of employer and employees: see 143(5)(a) of the Fair Work Act

Awards may not apply to high income employees: see ss47(2), 329, 333 and Fair Work regulation 2.13

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Award Variation and Flexibility Clauses

Initial review of awards 2 years after commenced operation

First 4 yearly review

Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Act 2018(Cth).

Individual Flexibility Clauses: s144

Individual Employee must be better off overall: s144(4)(c)

Model Clause written by industrial tribunal

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Content of modern awards

May include:

minimum wages

type of employment

arrangements for work (rosters etc)

overtime rates

penalty rates

annualised wage arrangements

allowances

leave, leave loading etc

superannuation

consultation, representation and dispute resolution

outworkers

Must include:

coverage terms

flexibility term

dispute settlement

ordinary hours of work

(relevantly) pieceworkers rates, industry-specific redundancy schemes

automatic variation of allowances

Must NOT include:

objectionable terms

payments/deductions for employer benefit

right of entry

discriminatory terms

state-based differences

long service leave

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Question

Who sets the minimum wage?

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Wage Setting

Specialist Minimum Wage Panel of Fair Work Commission (see s617) set and vary minimum wages.

Minimum wage objective: s284

Panel must take into account factors including:

Performance and competitiveness of national economy including productivity, business competitiveness, inflation and employment growth;

Promoting social inclusion through increased workforce participation; and relative living standards and the needs of the low paid

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Wage Setting

Fair Work Commission must make minimum wage order and may vary or revoke modern award minimum wages: s285

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Question

What was the last wage rise and what is the current minimum wage?

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Wage Setting

FWC Minimum Wage Panel Annual Wage Review 2019-2020

The national minimum wage is $19.84 per hour or $753.80 per week as of 1 July 2020

%1.75 increase in wages

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Are the current minimum wages and conditions in Australia adequate?

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[2017] FWCFB 3500 Annual Wage Review 2016–17 at paragraph [14] wage review “modest and regular increases do not result in disemployment effects”.

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Covid-19 ‘Jobkeeper’ Arrangements

Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020 (Cth) Sch 1; Part 6-4C; Coronavirus Economic Response Package (Payments and Benefits) Act 2020; Coronavirus Economic Response Package (Payments and Benefits) Rules 2020; Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 2) 2020;Coronavirus Economic Response Package (Payments and Benefits) Alternative Decline in Turnover Test Rules 2020

Ian Neal, David Chin and Christopher Parkin, ‘Guide to the Jobkeeper Scheme’ (Vers. 4, updated 12 May 2020): https://www.ianneil.com/jobkeeper-guide