What is WorkChoices?
The introduction of the WorkChoices by the Howard Government from March 2006 is a turning point and marks a new era of industrial relations in Australia.
At its core, WorkChoices is designed to:
- Abolish the pre-existing division of Australia into five artificial State based labour markets and creating in its place one national system.
- Reinforcing the concept that employment is primarily a private relationship between an employer and an employee. WorkChoices subsequently gives employers and employees increased power to define their own relationship, free from the interference of the State. Bargaining and dispute resolution will consequently occur as much as possible at a workplace level.
- The power of third party intermediaries (e.g. unions) are accordingly given less authority and employers have an increased capacity to dispose of either incompetent or surplus employees.
- Increase business efficiency as employers no longer need to devote so much time to industrial relations, which they can subsequently use on developing and maintaining their business.
Which State laws will remain unchanged by WorkChoices?
The following areas will remain unchanged by WorkChoices:
- entitlements to superannuation
- workers compensation
- Occupational Health & Safety
- child labour
- long service leave
- the observance of public holiday, except the rate of pay on those public holidays
- the method of payment of wages and salaries
- the frequency of payment of wages and salaries
- deductions from wages and salaries
- matters relating to training of apprenticeships, except the rate of payment of trainees and apprentices
- attendance for service on a jury
Thus in investigating these areas readers are advised to refer to the relevant legislation as States and Territory parliaments still retain the right to pass laws regarding these matters.
Who is covered by WorkChoices?
The Act is designed to have the largest scope possible. This is obviously restrained by the constitutional limits on the Commonwealth government’s legislative power.
Basically if you are any of the following you will be subject to the Act:
- An incorporated entity- hence if you are a company that has “Pty Ltd” or “Limited” after your name you will be covered by the Act.
- Any organization that does work for the Commonwealth government.
It is estimated that 85% of all employees would be covered by WorkChoices.
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