People Smartz Blog

Over the last two months, we have seen a huge increase in businesses requesting we conduct our free compliance check on their business.

The reason for this is the implementation of the new Modern Awards and the National Employment Standards.  We are now seeing the effect of these new awards and standards on business and the additional burdens they involve.

Our experience with these reviews has enabled us to identify the 5 most common things we are seeing that businesses need to change because of the new laws.

Here they are (in no particular order):

1.  Expectations of 40 hour working week - a 40 hour working week is not in accordance with the National Employment Standards.  These standards set the maximum number of hours at 38 hours.  Now there are ways businesses can continue to use a 40 hour working week providing their employees are better off overall.  But these need to be agreed in writing through either individual flexibility agreements or a collective agreement.
2.  Ordinary working hours not in accordance with the new Modern Award - the new awards may include a change to the hours used to define ordinary working hours.  This means that from 1 July 2010, overtime or penalties may kick in at new times when compared to other agreements. These are subject to transition arrangements, but businesses need to be aware of the potential of extra cost here.  Once again these may be changed by individual flexibility agreements etc.
3.  Businesses still utilising State Awards - All Australian States (except W.A) have referred their powers for industrial relations to the Federal Government.  This means that, except for state government employees, the vast majority of employers previously on a state award are now covered by new modern award.  Businesses need to be aware and compliant with the appropriate award.
4.  Lack of awareness of National Employment Standards - the National Employment Standards lay down the minimum standards of employment for all employees.  By not being aware of the changes between the standards and their current practices, employers run the risk of being in breach of the standards.  A couple of the most common things we are seeing are an unawareness of new work flexibility requirements and the altered termination and redundancy requirements.
5.  Thinking they can ignore the changes - this is just not a smart business move, but a number of businesses are electing this option.  I recommend if you are considering this, you visit the Fair Work Ombudsman website and read the press releases concerning the breaches they have identified and taken action against.

Should you be concerned about your business, or you want to check to made sure your doing things right -  book yourself in for one of our compliance reviews today!

Happy New Year!

Listening to the news last night here in Brisbane, the reports were on many new laws/changes being introduced in the new year.  Bus Fares were going up, politicians were going to be paid more etc.

But there was not one mention of some of the most wide spread changes to the working lives of Australians.  Effective today, Australia's new system of modern awards and the National Employment Standards (NES) will now govern the way businesses employ and manage their staff.

Over the past 6-8 months, I (and many others) have been seeking to raise awareness of these changes and urging businesses to prepare.

Today, the time for preparation is over - from today it is time to act......

If you haven't already identified your new award, it is time to do it.

If you haven't looked at the New Employment Standards (NES), it is time to do it.

If you haven't already identified the changes to your employment practices that will need to be made, it is time to do it.

If you haven't already put in place policies and procedures to protect your business, it is time to do it.

If you haven't already ensured your employment agreements are consistent with the new laws, awards and standards, it is time to do it.

If you haven't got appropriate processes in place to mitigate risk in areas such as harassment, discrimination, Health and Safety etc, it is time to do it.

If you haven't got a engagement plan for the unions relevant to your business, it is time to do it.

If you haven't got a plan for "good faith bargaining" and consulting with your staff, it is time to do it.

If you haven't looked into how to introduce flexibility into your business through "individual flexibility agreements", it is time to do it.

Not a bad list is it?  And this is only the start! 

For more information, visit the members section of our website today!

A few blogs ago, I told you about the new unfair dismissal laws and how they affect small business.

The new legislation becomes law on Wednesday, 1 July.  With these laws comes a revamp of the Australian Industrial Relations Framework.  With Australia's political landscape this is not really new - it regularly changes with changes of government!

As already stated, the new laws change the unfair dismissal laws.  Other areas that are affected are:

• The expansion of Workchoice's 5 minimum standards of employment to a 10 minimum standards.  With the new modern awards, these will form the new Safety Net for employees from 1 January 2010
• A change to the definition of small business
• Increased Union Right of Entry into workplaces for investigation, discussions and OH&S matters
• Significant changes to the manner in which industrial relations is governed with the creation of Fair Work Australia - a one stop adviser, mediator and arbitrator of the new laws.
• The abolition of AWA's (no surprise there!)
• An "emphasis on enterprise level collective bargaining underpinned by simple good faith bargaining obligations"
• The introduction of an additional discrimination jurisdiction under the Fair Work Act.
• Redundancy and Termination changes including the setting of minimum redundancy payments and notice periods 
• Maternity and Paternity Leave

With these new laws it becomes more important than ever to ensure your workplace has procedures and policies in place to respond to employee complaints and lay down expectations in the event of a dispute or issue.  In addition, you employment agreements may now contain clauses that contradict the new laws.  I recommend strongly that you seek some assistance to ensure you are ready!

Should you need any further information on the new laws, contact People Smartz and we will be happy to assist.