Government View on Modern Award Review
5th February 2014
The Australian Government has asked the Fair Work Commission to comprehensively review the minimum terms and conditions in modern awards and to consider their relevance to modern workplaces. It suggests that the four yearly review of modern awards currently underway, is an opportunity to re-align or dis-amalgamate awards, where necessary.
In a written submission made to the Fair Work Commission the Government has outlined its view of the scope and nature of the review powers under the Fair Work Act. The Government believes the softening economic environment and labour market should be carefully considered by the Commission during the Review. In particular, the Commission should consider the impact of employment costs on employers’ decision to hire workers over the next four years.
Other elements of the submission include:
A request that the Commission should take into account the need to ensure a simple, easy to understand modern awards system when setting and varying modern awards. Due to the limited timeframes of the award modernisation process, current modern awards contain a high degree of detail and can be difficult to interpret. The Government believes they can be particularly confusing for small business operators and individual employees who generally do not have specialist workplace relations experience.
There is a significant obligation on the Commission to ensure modern awards do not contain clauses beyond what was envisaged by the legislature. It is also a means by which modern awards should be kept relatively succinct
Ensuring modern awards are concise and provide only minimum terms and conditions of employment will encourage parties to bargain for enterprise agreements that suit the particular needs of their workplace
The Fair Work Commission has commenced it’s work on the review of modern awards and is expected to continue the process for the next 18 months.
Further information on the review including all of the submissions, decisions and statements published during the course of the review are available to read from the Fair Work Commission