Employment Awards And Enterprise Agreements Flashcards
What is industrial relations?
Employees wages and conditions of employment are largely determined by the practice of IR and employers must comply with industrial laws and awards.
Employers have certain objectives that may include:
to make an acceptable profit
to conduct an efficient organisation
to have a productive workforce
Employees also have objectives concerning work these may be: to earn the best possible wage for the job
to have a secure and satisfying job
to develop a career
Order of precedence
Federal legislation - Fairwork/NES (National employment standards). Income tax. Superannuation.(All employees are covered by this)
Awards or EBA
State legislation. Long service leave. Payroll tax. WorkCover.
Contracts and company policies
Who are the three main parties involved in industrial relations?
Employers, their management and in employer associations.
Employees and trade unions
The Government
What are the two parts of the safety net?
- 10 national employment standards in legislation applies to all employees
- Modern awards which provide industry related details and build on the NES which contain further minimum standards which have been tailored to the industries and occupations to which they apply.
When did the NES become fully operational?
1st of January 2010
What are the 10 minimum standards?
- Maximum weekly hours of work
- Requests for flexible working arrangements
- Parental leave
- Annual leave
- Personal/carers leave and compassionate leave
- Community service leave
- Long service leave
- Public holidays
- Notice of termination and redundancy pay
- Fair work information sheet
What is the NES?
The NES are legislated minimum entitlements that cannot be excluded or modified to the detriment of an employee by contract employment or another industrial agreement. As with all legislation minimums an employer can we be more generous.
Award modernisation
New modern awards replace the previous system of state and Federal awards. Modern awards commenced operation on 1 January 2010. They may include terms relating to: -Minimum wages -Types of employment -When work is performed -Overtime rates -Penalty rates -Annualised wages and salaries -Allowances -Leave and loadings -Superannuation -Procedures for consultation representation and dispute settlement
Conditions of employment
The terms and conditions under which a person is employed and and governed by a number of factors:
- awards & EBA’s
- legislation such as the NES
- contract of employment
Most people’s employment relationship depends on all four factors
What is an award?
A legal document that sets out the rights and obligations of employers and employees engaged in particular types of work.
There are three things in this definition that are very important.
Legal document: Awards have the force of the law , you must comply with an award.
Min terms and conditions: must be met, can be more more generous but must meet minimum conditions.
Industry or Occupation: over 100 awards covering all different types of occupations.
What is an Enterprise Agreement?
Like and award. Sets out the minimum conditions of employment for employees engaged in particular types of work in the same way as an award. However, unlike an award most EA’s are specific to a particular workplace or project. Enterprise Agreements are negotiated voluntarily between an employer and either the employees concerned or a union on the behalf of those employees (the parties).
Three types of Enterprise Agreements?
Single-enterprise agreements
Multi-enterprise agreement
Greenfields agreements
What are the five steps to making an Enterprise Agreement?
- Notify the employees of their rights
- let them know of their rights to be represented by a bargaining representative during negotiations. No later than 14 days after an employer agrees to bargain OR after FWA makes a majority support determination. - Negotiate the terms of the agreement.
- parties must negotiate in good faith. It means you must attend all meetings and genuinely consider all proposals made by your employees or their representatives. - Present a draft of the EA to employees.
- at least 7 days before they are asked to vote on it. Reasonable steps taken to ensure agreement is explained in full and understood. - Get employees to vote on the agreement.
-notify employees when and where it will take place and want method of voting used. eg..paper ballot, show of hands.
Majority wins. 50% plus one to approve agreement.
5.Lodge the enterprise agreement with FWA.
-must be lodged for approval within 14 days of majority vote win.
An agreement will come in operation 7 days after approved by FWA.
Enterprise agreements good or bad?
Advantages
- Act as a catalyst to change
- Provide in employees and employers with greater flexibility
- Formalise employment relationships where employees are not covered by an industry award
- Can give better flexibility and improved benefits
- Improved profitability
Disadvantages
- Constrained by a semi regulated industrial relations framework
- No definite link on increased productivity has been proven
- Majority of workplaces lack experience with bargaining this could disadvantage some workers or groups due to lack of negotiating skills experience and differing power of bargaining groups
Employment legislation
Laws have been passed by state and federal governments which contribute to an employees conditions of employment.
Employment legislation has been designed to protect employees and provide employers with guidelines as to minimum requirements expected at law in the administration of the employment relationship.
