U2 AOS3 KK8 Awards, EBAs and IECs Flashcards
Which piece of legislation establishes a system for determining wages and working conditions in Australia?
Fair Work Act 2009
Who is the Fair Work Act administered by?
The Fair Work Commission
True or False
No Award, Enterprise Agreement or Individual Employment Contract can set out conditions that are less than the national minimum wage or the conditions set out in the National Employment Standards (NES).
True
List three entitlements that are included in the NES.
- Maximum weekly hours = 38 hours per week + ‘reasonable’ additional hours
- Flexible working arrangements – certain employees can request a change
- Parental leave = up to 12 months unpaid + right to request an extra 12 months
- Annual leave = 4 weeks paid per year + additional week for some shift workers
- Personal/carers leave and compassionate leave = 10 days per year paid
- Community service leave = unpaid leave for voluntary emergency management activities and jury service
- Long service leave = paid leave for employees who have been with the same employer for a long time
- Public holidays – an entitlement to a day off unless reasonably requested to work
- Notice of termination and redundancy pay
- Fair Work Information statement – must be provided to all new employees
True or False
- Awards set out legally binding minimum requirements for wages and conditions for specific industries.
- Awards are determined by the Fair Work Commission (FWC)
- Submissions can be put forward by mployer associations, unions and other peak bodies but the FWC does not have to take them into account when finalising Awards.
- Awards have a duration of 10 years.
- True
- True
- False
- False - Awards have a duration of 4 years
Provide 3 examples of what each Industry Award covers.
- Minimum wages
- Working conditions and overtime
- Meal breaks
- Holidays and leave
- Penalty rates and allowances
- Procedures for resolution of grievances and termination of employment
- Superannuation
- Annual leave and leave loadings
Define ‘Enterprise Bargaining Agreement’ (EBA)
A written collective agreement made b/w an employer and employees at a workplace.
True or False
Employees can strike while an EBA is in place.
False - Employees can only strike when an EBA is being negotiated.
Briefly outline the process involved in negotiating and approving an EBA.
- Negotiation between employer and representatives chosen by employees (possibly union rep)
- EBA ratified by majority vote.
- EBA is reviewed by the FWC
- FWC checks that employees are better off overall than the relevant award (Better Off Overall Test – BOOT) and that no unlawful terms have been included in the agreement.
The FWC also checks that the agreement runs for no more than 4 years and a dispute settlement procedure is included.
- EBA is approved by the FWC before being registered.
Define ‘Individual Employment Contract’ (IEC)
An agreement between an individual employee and an employer regarding wages and conditions.
True or False
The employer and employee can enter into an IEC that includes terms and conditions that are less than those specified in the NES.
False - To be legal, the contract must not provide wages and conditions less than the minimum set out in either the NES or any relevant awards or enterprise agreements that may apply.
Provide two benefits for organisations of using Awards
- Cheaper than EBAs as the business does not have to spend time negotiating or pay for legal advice.
- No conflict within the organisation. The terms and conditions are set out by the FWC for the whole industry.
Provide two drawbacks for organisations of using Awards.
- Awards are not flexible to the organisation’s specific needs.
- Awards have rigid job classifications that may not suit the needs of the organisation.
- If the organisation has roles that are covered by different awards it can be difficult to move employees within the organisation.
- It can be difficult to correlate award classifications to the very specific roles performed in the business.
Provide two benefits for organisations of using EBAs.
- It can be simpler if the organisation employs people from a few different industries.
- Highly flexible to organisation’s specific needs.
- The BOOT means the EBA contans better conditions than the NES and Awards. This can be a way of attracting employees + add to workplace culture.
- Job classifications can be tailored to the business and help with attracting and retaining employees.
- Successful agreements increase productivity – e.g. lower administrative red tape than are in Awards.
EBAs can also include agreement on targets – e.g. production or waste reduction. - EBAs make it simpler for employees and employers to know their rights.
- Employee involvement in negotiation makes employers more aware of employee issues and grievance.
Provide two drawbacks for organisations of using EBAs
- The BOOT test means that the agreement has to provide a better deal overall for employees.
- EBAs are more expensive for organisations in terms of allocating resources to the negotiation process and more expensive to implement due to the BOOT.
- The process of negotiation can create conflict b/w employees and the organisation.
