"The Labor Government will be phasing in its IR Policy - Forward with Fairness - progressively over the coming years. In early 2008 a Transitional Bill was passed through Parliament introducing the first changes of the new legislation. The initial changes mostly targeted the use and implementation of AWA's.

Labor has also initiated a comprehensive award review process (conducted by the Australian Industrial Relations Commission) referred to as 'Award Modernisation' as part of its pledge to move back to a system underpinned by awards. Labor has proposed that awards will be simplified, modernised and rationalised and retained as the reference for minimum terms and conditions with the modern awards becoming effective from 1 January 2010.

As of 16 June 2008, Labor has also released the National Employment Standards (NES) which outlines 10 minimum standards for all employees which cannot be 'bargained away'. The NES will replace the 5 minimum standards of Workchoices from 1 January 2010 and will underpin modern awards.

The full impact of the new legislation will not be seen until January 2010 (subject to successful adherence to current proposed timelines). Until the full impact of the new legislation, WorkChoices remains largely in force (refer to the following section).

For an extended briefing on the Forward with Fairness proposal, refer to the October 2007 edition of our "Relations" Newsletter - To view recent editions of our "Relations" Newsletter, highlight the "News" option in the top menu bar and select "Newsletters" from the drop-down menu that appears.

"'WorkChoices' is the Federal System of Industrial Relations which was introduced on 27 March 2006. Businesses classed as 'Trading/Constitutional Corporations' were automatically propelled into the Federal System of 'WorkChoices' - it is not a choice as to which Industrial Relations System applies to you.

It is essential that you establish whether your business is classed as a 'Trading/Constitutional Corporation' or not - this fact is the sole determinant of the application of 'WorkChoices' to your business. If you are unsure about the 'trading status' of your business, contact your accountant or solicitor for professional advice.

Our "Relations" Newsletters contain a series of briefings on numerous aspects of the Federal 'WorkChoices' Legislation. Our Newsletters can be accessed by everyone - To view recent editions of our "Relations" Newsletter, highlight the "News" option in the top menu bar and select "Newsletters" from the drop-down menu that appears.

"On Tuesday, 8th July 2008, the Australian Fair Pay Commission (AFPC) released the 2008 wage determination for businesses propelled into the Federal system of 'WorkChoices' Legislation. The wage determination, which is applicable to all businesses classed as 'Trading/Constitutional Corporations', provides for wage increases as follows:

• an increase of $21.66 per week (i.e. 57 cents/hr) in the Federal Minimum Wage to $14.31 per hour ($543.78 per week); and
• an increase of $21.66 per week (i.e. 57 cents/hr) in all Adult Australian Pay and Classification Scales (Pay Scales).

These increases will become operative on the first pay period commencing on or after 1 October 2008.

The full amounts listed above apply to Adult wages only. Increases for juniors, apprentices and trainees will be calculated according to stated formulas contained in relevant instruments.

"If your business is drawn into the Federal System of 'WorkChoices' please ensure that you have increased the sick leave entitlement of full-time employees to 10 days per year (part-time employees calculated pro rata) - this change became operative 27 March 2006. Sick leave is to be credited monthly. Some awards previously provided for 10 days sick leave per year but many State awards only provided for 8 days per year. 10 days sick leave per year is a minimum standard of 'WorkChoices' legislation and if your business is subject to 'WorkChoices' you must allow for an entitlement of 10 days sick leave per year for full-time employees (pro rata for part-timers).

"On Wedneday, 27th August 2008, the Australian Industrial Relations Commission (AIRC) published its Decision in the 2008 wages and allowances review and granted the following increases which are applicable to 'Transitional Employers' (Businesses/Organisations that are not Trading Corporations that operate under Federal Award):

• an increase of $21.70 per week in all adult weekly award rates; and
• certain allowances specific to each award will be increased as determined by the AIRC (a flat percentage increase has not been set).

These increases will become operative from the first pay period commencing on or after 1 October 2008.

The full amounts listed above apply to Adult wages only - juniors, apprentices and trainees will receive the stated percentage of the increased adult rate relevant to their position/level.

Amended wages and allowances will be issued to subscribers as each award is individually varied by the AIRC in due course.

THIS INCREASE DOES NOT APPLY TO BUSINESSES/ORGANISATIONS CLASSED AS 'TRADING/CONSTITUTIONAL CORPORATIONS'. If your business/organisation is classed as a 'Trading/Constitutional Corporation' the wage rates for your employees will now be governed by the Australian Fair Pay Commission - review the above section "2008 Minimum Wage Decision - Australian Fair Pay Commission".