employees gained a windfall when they became entitled to LSL for the first time, with retrospective effect. Employers were hit with this cost overnight without any phasing-in or transitional arrangements. Coverage coastal Part 1-3, Div Under the former WR Act, an exemption from coverage led to Restore the exemption of foreign BARRIER – shipping 3 an increase in ships trading around the Australian coast. This ships in the coastal trade from FW position was reversed by the FW Act, which covered foreign Act coverage. ships in the coastal trade for the first time. The change reduced the number of ships trading around the coast, significantly increased shipping costs and introduced unworkable complexity. Freight that should be carried by sea is now being carried by road. Interaction rules 57 While an enterprise agreement applies, a modern award does Clarify that an enterprise BARRIER – enterprise agreements not apply. As a result, enterprise agreements must be agreement applies, and a modern and modern award comprehensive in scope in order to pass the BOOT. This is a award does not apply, to the disincentive to bargain - the scope of issues cannot be extent of inconsistency. confined to issues of particular concern to the workplace. The National Employment Standards Flexible work 66 Current provisions permit State and Territory laws to Cover the field in relation to COMPLEXITY arrangements undermine national policy in relation to requests for flexible requests for flexible working working arrangements. arrangements Annual leave 88 There is no capacity for employers to direct the taking of Give employers the right to direct BALANCE leave. Employees who do not agree to take leave can accrue it the taking of leave where attempts indefinitely, undermining the policy intent of providing to reach agreement have failed, regular rest and recreation. Employers cannot unreasonably with appropriate safeguards. refuse to agree to a leave request, but employees have no Alternatively, require employees equivalent responsibility. not to unreasonably refuse a request to take leave. Annual leave loaded 88(1) FWC decisions have interpreted this provision as preventing Provide for flexibility as to when BARRIER – rates pre-payment of annual leave (eg. in loaded rates) despite time leave is paid for and taken, off for leave being given at a later time. Inconsistency of subject to appropriate safeguards. approach in FWC has created uncertainty and the FWC approach has reduced flexibility. Annual leave 90(2) The current provision is ambiguous, causing significant Clarify that the provision simply COMPLEXITY –
employees gained a windfall when they became entitled to LSL for the first time, with retrospective effect. Employers were hit with this cost overnight without any phasing-in or transitional arrangements. Coverage – coastal shipping Part 1-3, Div 3 Under the former WR Act, an exemption from coverage led to an increase in ships trading around the Australian coast. This position was reversed by the FW Act, which covered foreign ships in the coastal trade for the first time. The change reduced the number of ships trading around the coast, significantly increased shipping costs and introduced unworkable complexity. Freight that should be carried by sea is now being carried by road. Restore the exemption of foreign ships in the coastal trade from FW Act coverage. BARRIER Interaction rules – enterprise agreements and modern award 57 While an enterprise agreement applies, a modern award does not apply. As a result, enterprise agreements must be comprehensive in scope in order to pass the BOOT. This is a disincentive to bargain - the scope of issues cannot be confined to issues of particular concern to the workplace. Clarify that an enterprise agreement applies, and a modern award does not apply, to the extent of inconsistency. BARRIER The National Employment Standards Flexible work arrangements 66 Current provisions permit State and Territory laws to undermine national policy in relation to requests for flexible working arrangements. Cover the field in relation to requests for flexible working arrangements COMPLEXITY Annual leave 88 There is no capacity for employers to direct the taking of leave. Employees who do not agree to take leave can accrue it indefinitely, undermining the policy intent of providing regular rest and recreation. Employers cannot unreasonably refuse to agree to a leave request, but employees have no equivalent responsibility. Give employers the right to direct the taking of leave where attempts to reach agreement have failed, with appropriate safeguards. Alternatively, require employees not to unreasonably refuse a request to take leave. BALANCE Annual leave – loaded rates 88(1) FWC decisions have interpreted this provision as preventing pre-payment of annual leave (eg. in loaded rates) despite time off for leave being given at a later time. Inconsistency of approach in FWC has created uncertainty and the FWC approach has reduced flexibility. Provide for flexibility as to when leave is paid for and taken, subject to appropriate safeguards. BARRIER Annual leave – 90(2) The current provision is ambiguous, causing significant Clarify that the provision simply COMPLEXITY
sub0223-workplace-relations.docx