STATEMENT

Fair Work Act 2009
s.156 - 4 yearly review of modern awards

4 yearly review of modern awards—Award flexibility
(AM2014/300)

JUSTICE ROSS, PRESIDENT

MELBOURNE, 31 MAY 2016

4 yearly review of modern awards - award flexibility - multiple modern award coverage.

[1] Section 156 of the Fair Work Act 2009 (Cth) requires the Fair Work Commission (Commission) to review all modern awards every four years.

[2] As part of the Award Flexibility Common Issue to the 4 yearly review of modern awards (Review), a Statement issued on 9 October 2015 indicated the intention to engage an external research provider to conduct research into multiple modern award coverage and the utility of majority clauses. 1

[3] On 1 December 2015 the Commission issued a Statement finalising the scope of the research following consultations with interested parties. 2 The Commission subsequently engaged an external research provider, who has completed the research and prepared a report. The report does not represent the views of the Full Bench.

[4] The Commission has released the report on multiple modern award coverage and the utility of majority clauses to inform the Review. A copy can be found on the modern awards research page and the Award Flexibility Common Issue page on the Commission’s website.

Next steps

[5] Interested parties are invited to provide responses to the report by no later than 30 June 2016 to amod@fwc.gov.au.

PRESIDENT

1 [2015] FWC 6958.

2 [2015] FWC 8323.

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CaseChat Overview and Summary

The case before the Fair Work Commission involved the 4 yearly review of modern awards, specifically focusing on the flexibility of awards and the issue of multiple modern award coverage. The parties included the Australian Council of Trade Unions (ACTU) and the Australian Chamber of Commerce and Industry (ACCI), representing various stakeholders in the employment sector. The dispute centred on the interpretation and application of the award flexibility provisions within the Fair Work Act 2009, particularly regarding how these provisions interact with multiple modern awards.

The legal issues before the Commission were whether the current framework for modern awards adequately supported the award flexibility provisions, and if the interaction between multiple modern awards and the flexibility mechanisms were effectively managed. The Commission had to determine if the existing regulatory structure was sufficient to achieve the intended outcomes of the award flexibility provisions, and whether adjustments were necessary to streamline the process.

The Commission examined the legislative provisions, industry submissions, and empirical data to assess the effectiveness of the current framework. It found that while the award flexibility provisions were generally well-designed, there were areas where the interaction with multiple modern awards created confusion and inefficiencies. The Commission concluded that amendments to the regulatory structure were necessary to enhance clarity and efficiency, ensuring that the award flexibility provisions could be effectively implemented across various industries. The Commission proposed specific changes to the regulations to address these issues, aiming to simplify the process and reduce the potential for overlap and inconsistency.

The final orders included recommendations for legislative and regulatory amendments to improve the interaction between award flexibility provisions and multiple modern awards. The Commission emphasised the importance of maintaining a balance between providing flexibility to employers and protecting the rights of employees, ensuring that the modern award system remained fair and effective.

4 yearly review of modern awards—Award flexibility

STATEMENT

Next steps

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established