AWARD MODERNISATION: ANOTHER "INTO THE ABYSS" DECISION

TRANSITION PROVISIONS

The AIRC (yes – it is that beast!) handed down its decision with respect to transitional provisions in modern awards on 2 September 2009. The AIRC has, in adopting changes to key entitlements including wages, casual and part-time loadings and penalty rates in many modern awards, deferred until mid-2010 the operational date. The full bench has opted for a five-year phase-in mechanism designed to help employers and employees cope with the impact of award modernisation. The full bench said it approached the task of formulating the transitional provisions in light of the potentially competing twin award modernisation objectives of avoiding disadvantage to employees or increased costs for employers: some award conditions will increase, leading to cost increases, and others will decrease, leading to potential disadvantage for employees, depending upon the current award coverage.

The full bench also in the decision implements a mechanism to allow employees who suffer a reduction in take-home pay under the phase-in provisions to apply to FWA for a take-home pay order.

The orders will work on a similar basis to those available under the T and C Act but differ in being available to workers who start employment after the commencement of a modern award but during the phase-in (or out) period. >> read more