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Achieving Compliance with the Fair Work Act
by Adrienne Unkovich, MD, Workforce Guardian - Australia’s number one online employment relations service


Happy New Year everyone.

Let me start my first article for 2010 by thanking the good men and women of the (now defunct!) Australian Industrial Relations Commission who, thanks to their incredibly late decision to exclude Accountants from Modern Award coverage, have made the start of 2010 happier than many of us had previously expected. However, the exclusion of Accountants from the Miscellaneous Modern Award 2010 doesn't mean that you and your firm can relegate workplace relations to a less important rung on your ladder of priorities. Let me explain why:

Firstly, the new Modern Award system and the 10 new National Employment Standards both commenced on 1 January 2010. Even though Accountants are excluded from the new awards system, your financial planners, clerical employers and even your cleaners are not. Additionally, the 10 NES apply to almost every employee in the country, including Accountants. If you haven't already done so, you should now be checking all of your current employment contracts as a matter of urgency to ensure they’re fully compliant with your new legal obligations.

Secondly, the Fair Work Ombudsman (FWO) recently announced that significant amounts have been set aside for this new watchdog to check up on at least 50,000 businesses this year to ensure they are complying with the Fair Work Act 2009. The FWO has the power to impose heavy fines on businesses that are found to be in breach of the new, highly-regulated employment relations system.

Thirdly, on 1 January the Governments of Queensland, New South Wales, South Australia and Tasmania joined the national Fair Work System. This means that businesses in those states that were previously governed by state-based laws (such as sole-traders and unincorporated partnerships) became bound by the Commonwealth Fair Work Act on 1 January. Many of these businesses are completely unaware that this major change took place.

Here’s my expert advice on what you should be doing right now.
As a starting point, think about your own firm and ask whether you have your house in order. Questions you should be asking of the relevant staff in your firm include:
  • Have we amended contracts to ensure a maximum working week of 38 hours?
  • Are all our employees being paid correctly under their new Modern Award?
  • If we are audited by the FWO, will there be any areas where we are not fully compliant?
Next, you should think about your clients. I suspect the vast majority of them are very confused about Modern Awards, the NES and their other responsibilities under the Fair Work Act 2009. Chances are your clients will eventually look to you and your staff for help. I suggest that as an essential part of your annual review process you not only recommend Workforce Guardian, but also utilise our handy compliance checklist.

Here at Workforce Guardian, our team of employment relations experts have developed a checklist detailing those things you should know -and do - now in relation to the Fair Work Act, the NES and Modern Awards. This is available free of charge to all recipients of this newsletter and can be obtained by emailing my colleague Pauline at pauline.doyle@workforceguardian.com.au or by calling 1300 659 563.

Best regards,
Adrienne Unkovich
Managing Director, Workforce Guardian



Adrienne Unkovich, MD, is part of the team at Workforce Guardian, Australia’s number one online employment relations service. For more information on how Workforce Guardian can inexpensively help your firm meet HR compliance laws, click here.
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