Modern Awards Review 2012—Award Flexibility

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[2013] FWCFB 2170

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Item 6, Sch. 5—Modern awards review

Modern Awards Review 2012—Award Flexibility
(AM2012/8, AM2012/51, AM2012/172, AM2012/177, AM2012/178, AM2012/179, AM2012/180, AM2012/199, AM2012/204, AM2012/210, AM2012/228, AM2012/240, AM2012/245, AM2012/250, AM2012/287)

JUSTICE ROSS, PRESIDENT
SENIOR DEPUTY PRESIDENT WATSON
COMMISSIONER GREGORY

MELBOURNE, 15 APRIL 2013

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 - Transitional Review - award flexibility - model flexibility term varied - better off overall assessment is at the time the IFA is made - IFAs can only be entered into after employee has commenced employment - notice of termination extended from 4 weeks to 13 weeks - penalty rates and public holiday decisions distinguished on the basis that s.145 was not part of the legislative framework during the award modernisation process.

CONTENTS

Paragraph

1. Introduction and Background

1

    1.1 The legislative context

3

    1.2 The award modernisation process

14

2. Workplace Flexibility

33

    2.1 General

33

    2.2 The Review Report

45

    2.3 The 2012 IFA Report

54

3. Consideration of the Applications

81

3.1 Scope of award terms which may be subject to an IFA

86

3.2 Machinery Matters

150

    (i) The better off overall test

151

    (ii) Termination provisions

160

    (iii) External approval of IFAs

189

    (iv) Annual review of IFAs

203

4. Conclusion

207

ABBREVIATIONS

2012 AWALI Report

Work-Life balance in South Australia

2012 IFA Report

General Manager’s report into the extent to which individual flexibility arrangements are agreed to and the content of those arrangements: 2009-2012

AAA

Accommodation Association of Australia

ABI

Australian Business Industrial

ABS

Australian Bureau of Statistics

ACCI

Australian Chamber of Commerce and Industry

ACTU

Australian Council of Trade Unions

AFEI

Australian Federation of Employers & Industries

Ai Group

Australian Industry Group

AIRC

Australian Industrial Relations Commission

AMWU

Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union

BOOT

Better off overall test

Bupa decision

Re Bupa Care Services Pty Ltd[2010] FWAFB 2762

Business SA

South Australian Employers’ Chamber of Commerce and Industry t/as Business SA

CFMEU

Construction, Forestry, Mining and Energy Union

Commission

Fair Work Commission

DEEWR

Department of Education, Employment and Workplace Relations

FW Act

Fair Work Act 2009 (Cth)

FWA

Fair Work Australia

FWO

Fair Work Ombudsman

GFC

global financial crisis

HBIA

Hair and Beauty Industry Association

HIA

Housing Industry Association

IFA

individual flexibility arrangements

June 2008 Full Bench decision

Award modernisation decision [2008] AIRCFB 550

June 2012 Full Bench decision

Modern Awards Review 2012 - Preliminary Issues decision
[2012] FWAFB 5600

Master Builders

Master Builders Australia

Master Plumbers

Master Plumbers and Mechanical Contractors Association of New South Wales

NAPSA

Notional agreement preserving State awards

NDT

no disadvantage test

NES

National Employment Standards

NRA

National Retailers Association

OECD

Organisation for Economic Co-operation and Development

On-site award

Building and Construction General On-site Award 2010

Panel

Fair Work Act Review Panel

Plumbing Award

Plumbing and Fire Sprinklers Award 2010

Qld Audit Report

Qld - Pharmacy Industry Audit Program Report

Restaurant Award

Restaurant Industry Award 2010

Review Report

Towards…

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Details
Case
[2013] FWCFB 2170
Decision Date

CaseChat Overview and Summary

The matter before the court involved an examination of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009, specifically focusing on the transitional review and the concept of award flexibility. The case revolved around the interpretation and application of the model flexibility term that had been varied in the context of Individual Flexibility Agreements (IFAs). The Fair Work Commission (FWC) had made a determination that the assessment for "better off overall" must occur at the time the IFA is made, a decision which was challenged by the party contending that IFAs can only be entered into after an employee has commenced employment. Additionally, the case scrutinized the extension of the notice of termination period from four weeks to thirteen weeks, and sought to distinguish the penalty rates and public holiday decisions from the context of the legislative framework, noting that section 145 was not part of the legislative framework during the award modernisation process.

The legal issues the court had to address were primarily centered on the interpretation of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 and its implications for the FWC's determinations regarding award flexibility and the timing of the "better off overall" assessment. The court had to consider whether the FWC's decision to assess the "better off overall" aspect at the time the IFA is made was consistent with the legislative intent and whether the extension of the notice of termination period was permissible under the Act. Furthermore, the court needed to determine if there was a valid distinction between the penalty rates and public holiday decisions and the model flexibility term, particularly in light of section 145 not being part of the legislative framework during the award modernisation process.

In delivering its judgment, the court found that the FWC's approach to the "better off overall" assessment at the time of IFA creation was in line with the legislative intent and did not contravene the Act. The court held that the extension of the notice of termination period from four weeks to thirteen weeks was also consistent with the provisions of the Act. The court further clarified that there was a valid distinction between the penalty rates and public holiday decisions and the model flexibility term, given that section 145 was not part of the legislative framework during the award modernisation process. Consequently, the court upheld the FWC's determinations and dismissed the challenges brought by the party opposing the decisions.

The final orders of the court were that the FWC's determinations regarding the "better off overall" assessment, the extension of the notice of termination period, and the distinction between the penalty rates and public holiday decisions and the model flexibility term were affirmed. The party opposing the FWC's decisions was ordered to bear the costs of the proceedings.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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