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Legal

Fair Work Ombudsman checklist

  • Luke Telford
  • 8 December 2009
Fair Work Ombudsman checklist Photo credit: hisks, sxc.hu
The Fair Work Act is the Commonwealth Government's new industrial relations legislation. One of the major impacts of the act is a significant rearrangement of the industrial relations system into two new governmental bodies: Fair Work Australia and the Fair Work Ombudsman.

Fair Work Australia has absorbed three separate governmental divisions: the Australian Industrial Relations Commission, the Australian Fair Pay Commission and The Workplace Authority. The Fair Work Ombudsman has replaced both the Australian Building and Construction Commission, and the Workplace Ombudsman.

A key point to understanding where your business stands with respect to the Fair Work changes is the term ‘national system employer'. A ‘national system employer' is any business that is an incorporated entity (a ‘Pty Ltd' business that is actually trading), or any business that is located in the ACT, NT, SA, QLD, TAS or VIC (if your business is in another state and you're unsure of its status, the Fair Work Infoline will help you figure it out: 13 13 94). These businesses fall under the responsibility of Fair Work Australia.

If your business isn't a national system employer, then your work-related legal obligations will be found in the law of your respective state. In your case, the Fair Work Ombudsman is the organisation that will point you in the right direction.

The Fair Work Ombudsman has a number of roles. It's meant to promote ‘harmonious, productive and cooperative' workplace relations and monitoring compliance with the new Fair Work Act. It is also responsible for investigating breaches of the Fair Work Act, commencing court or Fair Work Australia when necessary, as well as providing representation to employees and workers when they are involved in a dispute that is not yet deemed appropriate for Fair Work Australia.

The Ombudsman has appointed Fair Work Inspectors who are responsible for educating businesses in their obligations, conducting audits to ensure businesses are complying with the laws, investigating complaints, and taking steps to enforce the laws where necessary.

The following is a checklist that outlines what small business, specifically, is obliged to do to comply with the new National Employment Standards, as enforced by the Ombudsman after 1/1/10:

  1. Work hours: Full time employees are to work a maximum of 38 standard working hours (plus reasonable additional hours).
  2. Flexible work arrangements: Following at least 12 months continuous service, employees who are parents are allowed to request flexible work arrangements until the child reaches school age. ‘Flexible work arrangements' includes changes in hours, patterns and locations of work. Requests must be in writing and employers must respond within 21 days. Refusals must include reasonable business grounds.
  3. Parental leave: All employees of at least 12 months of continuous service standing have a right to 12 months of unpaid parental leave after the birth or adoption of a child
  4. Paid leave: Employees are entitled to 4 weeks of annual paid leave. Certain shift workers are entitled to 5 weeks.
  5. Personal leave: Full-time employees are entitled to 10 personal/carers leave days annually. Two days of paid compassionate leave for each permissible instance of employee's family crisis. 
  6. Community service: Employees are entitled to leave for community service activities like jury service, or activities to do with an emergency or natural disaster. This is unpaid, with the exception of Jury service, which is capped at 10 days.
  7. Long service: Employees have the right to accrue long service leave.
  8. Public Holidays: Employees are allowed the right to a day off on public holidays. If the employee would usually have worked on that day, they have the right to be paid for the hours they would ordinarily have worked on that day.
  9. Termination: Employers must give a minimum amount of notice prior to the termination of employment. The amount of notice depends on how long the employee in question has worked for the company. The employee may be entitled to redundancy pay if the employment is terminated due to the employer no longer requiring the job, or if the employer has become insolvent or bankrupt. This obligation does not apply to employers with less than 15 employees, or where an employee has less than 12 months service.
  10. Statement: From January 1st, 2010, employers need to provide the ‘Fair Work Information Statement'external link to all new employees.
For more information, you can view a number of whitepapers at the Fair Work for Small Businessexternal link website, as well as a number of guides at the Fair Work Ombudsmanexternal link site. #
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