Tool Box
Issue No. 27 - February/March
WorkChoices and AWAs – the facts
by Mr Shayne Bakewell
The Federal Governments Workchoices reforms have now passed both houses of parliament and will become law from 1 March 2006.
Within this legislation the Government is clearly promoting the use of workplace agreements, and in particular Australian Workplace Agreements (AWAs). There has been a lot of media and controversy surrounding the new rules for AWAs.
Below are the simple facts about AWAs from 1 March 2006. Will they suit your business? This brief review may help you decide.
What is an AWA?
It is a written agreement between a business and an employee about the employee’s terms and conditions of employment. This agreement must be lodged with the Employment Advocate before it becomes an AWA.
Who can enter into an AWA?
Any employer that is a company or an incorporated trading entity.
Does an employee have to accept an AWA?
For new employees, the AWA can be offered as a condition of being employed. For existing employees, signing the AWA is voluntary.
What happens if some employees sign the AWA and some don’t?
In most cases all employees will sign, however if some employees do not sign they will remain on their existing terms and conditions of employment.
What happens to the Award that applies to the employee once they are on an AWA?
The Award no longer applies.
What minimum conditions have to be in the AWA so that it can be approved?
- The basic applicable hourly rate for the employee’s classification from the award (plus a casual loading for casuals).
- A maximum of 38 ordinary hours per week.
- Annual leave (four weeks or five weeks for 7-day shift workers).
- Personal Leave (combined sick leave and carer’s leave of two weeks per annum).
- Parental leave (52 weeks per annum unpaid).
- Compassionate leave (two days per occasion).
