Workplace Relations Amendment (A Stronger Safety Net) Act 2007
No. 107, 2007
An Act to amend the Workplace Relations Act 1996, and for other purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—The Fairness Test
Part 1—Main amendments
Workplace Relations Act 1996
Part 2—Consequential amendments
Workplace Relations Act 1996
Schedule 2—Workplace Authority
Part 1—Main amendments
Workplace Relations Act 1996
Part 2—Consequential amendments
Division 1—Workplace Relations Act 1996
Division 2—Other legislation
Coal Mining Industry (Long Service Leave Funding) Act 1992
Financial Management and Accountability Regulations 1997
Part 3—Transitional provisions
Schedule 3—Workplace Ombudsman
Part 1—Amendments
Division 1—Main amendments
Workplace Relations Act 1996
Division 2—Consequential amendment
Financial Management and Accountability Regulations 1997
Part 2—Transitional and application provisions
Schedule 4—Prohibited content
Workplace Relations Act 1996
Schedule 5—Membership requirements for registered organisations
Workplace Relations Act 1996
Schedule 6—Minor technical amendments
Workplace Relations Act 1996
Schedule 7—Preserved redundancy provisions
Part 1—Length of period of preservation
Workplace Relations Act 1996
Part 2—Notice requirements
Workplace Relations Act 1996
Part 3—Contingent amendments
Workplace Relations Amendment (A Stronger Safety Net) Act 2007
No. 107, 2007
An Act to amend the Workplace Relations Act 1996, and for other purposes
[Assented to 28 June 2007]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Workplace Relations Amendment (A Stronger Safety Net) Act 2007.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day on which this Act receives the Royal Assent. | 28 June 2007 |
2. Schedule 1 | A single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period. | 1 July 2007 (see F2007L01879) |
3. Schedule 2 | A single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period. | 1 July 2007 (see F2007L01879) |
4. Schedule 3 | A single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period. | 1 July 2007 (see F2007L01879) |
5. Schedule 4 | The day on which this Act receives the Royal Assent. | 28 June 2007 |
6. Schedule 5 | A single day to be fixed by… |
Overview
The Workplace Relations Amendment (A Stronger Safety Net) Act 2007, enacted on 28 June 2007 by the Parliament of Australia, amends the Workplace Relations Act 1996 to introduce a fairness test for certain workplace agreements. This legislation was introduced to address the problem of ensuring that workplace agreements provide fair compensation to employees in lieu of protected award conditions that are excluded or modified by the agreements. The Act aims to strengthen the safety net for employees by ensuring they receive fair terms and conditions of employment. The amendments are structured across several schedules, including changes to the fairness test, the establishment of the Workplace Authority Director to administer and enforce the fairness test, and consequential amendments to various sections and schedules of the Workplace Relations Act 1996 to accommodate the new framework. The Workplace Relations Amendment (A Stronger Safety Net) Act 2007 ensures that employees whose workplace agreements do not pass the fairness test are entitled to compensation, and it provides mechanisms for employers to vary agreements to meet the fairness requirements.
Scope and Application
The Workplace Relations Amendment (A Stronger Safety Net) Act 2007 amends the Workplace Relations Act 1996 to introduce the concept of a fairness test for certain workplace agreements. This Act applies to employers and employees within industries where terms and conditions of employment are or were usually regulated by an award, and where a workplace agreement lodges on or after 7 May 2007, and certain financial thresholds are met. The fairness test is applied to ensure that employees receive fair compensation in lieu of the exclusion or modification of certain award conditions by the Workplace Authority Director. This test applies to Australian Workplace Agreements (AWAs) and collective agreements. If an agreement fails the fairness test, the employer must take steps to remedy the situation or face the cessation of the agreement and potential compensation obligations to affected employees. The Act also revises the roles and functions of the Workplace Authority, establishing the Workplace Authority Director and Deputy Directors to manage and facilitate workplace agreements, provide guidance, and promote compliance with workplace relations legislation. The Act is a Commonwealth legislation, thus it applies nationally across Australia. There are no specific exclusions stated in the Act; however, certain conduct such as protected action under the definition in section 435 is not subject to the fairness test requirements. The Act extends its application through subordinate instruments, which can modify definitions, set out specific procedures, or establish thresholds for determining applicability.
Key Provisions
- The Workplace Relations Amendment (A Stronger Safety Net) Act 2007 introduces significant changes to the Workplace Relations Act 1996, primarily focusing on enhancing the fairness of workplace agreements through the introduction of a fairness test, restructuring the Workplace Authority, and establishing the role of the Workplace Ombudsman. One of the main provisions of this Act, found in Section 346M, mandates that the Workplace Authority Director must determine whether a workplace agreement passes the fairness test if the agreement modifies or excludes certain award conditions and if the annual salary of the employee, calculated according to specific provisions, is less than $75,000. This fairness test requires the Director to assess the compensation provided by the agreement as fair in comparison to the excluded award conditions, taking into account both monetary and non-monetary compensation, as well as the work obligations of the employee. Additionally, the Director may consider personal circumstances, such as family responsibilities, and in exceptional cases, broader industry or economic circumstances.
- The Act imposes several obligations on parties involved in workplace agreements. For instance, employers must ensure employees are informed about any notices received from the Workplace Authority Director regarding the fairness test (Section 346ZE). Furthermore, employers are prohibited from dismissing or threatening to dismiss employees if the primary reason is that a workplace agreement does not pass the fairness test (Section 346ZF). Employers are also prohibited from coercing employees to agree to the exclusion or modification of protected award conditions (Section 346ZH). The Act requires the Workplace Authority Director to notify employers and employees of decisions regarding the fairness test and allows employers a specific period to vary the agreement to meet the test (Sections 346P and 346U). If an agreement does not pass the fairness test and is not varied accordingly, it ceases to operate, and employees are entitled to compensation (Sections 346R and 346W). Employers must then pay any compensation owed to employees within a specified period (Section 346ZD).
- Breaches of the Act carry significant consequences. Employers who fail to pay compensation to employees when a workplace agreement does not pass the fairness test are in breach of the Act (Section 346ZD). Additionally, if an employer dismisses or threatens to dismiss an employee because the agreement does not pass the fairness test, they are in breach, and the Court may order the employer to compensate the employee for any damage suffered (Section 346ZF). Similarly, if an employer coerces an employee regarding the exclusion or modification of protected award conditions, they are also in breach, with potential civil remedies available (Section 346ZH). Employers who fail to provide a Workplace Relations Fact Sheet to new or existing employees within the specified periods are subject to a pecuniary penalty of up to one penalty unit (Sections 154D and 416). Other civil and criminal penalties are outlined in the Act, with penalties ranging up to 60 penalty units for certain breaches (Section 416).
- Area of Law
- Employment & Labour Law
- Instrument
- Amending Act
- Concepts
- Commencement Provisions
- Prohibited Conduct
- Licensing & Registration
- Reporting & Disclosure Obligations
- Repeal & Amendment
- Civil Penalty Provisions
