Introduction

The successful introduction and passing of the work choices legislation in Australia in December 2005 embarks Australia on the most comprehensive shake up of industrial relations since federation.

While naturally the ‘devil is in the detail’ what we do know is the industrial and employment environment has forever changed.

Changes include

• A unitary (single) system of industrial relations where previously there had been a federal system and one for each state,

• An emphasis on the Australian economy away from wages and conditions,

• Changes to Awards and Agreements including transitional arrangements,

• A reduction in the number of awards from an estimated 4,000 to 12,

• The setting up of the Australian Fair Pay Commission to determine minimum wages and conditions,

• A reduction in the powers of the Australian Industrial Relations Commission,

• State Industrial Relation Commissions will become redundant,

• Flexible work practices and the ability to cash out of some benefits (annual leave). These changes may lead to problems with workplace health and safety obligations,

• New Dismissal Provisions that are not as straightforward as have been trumpeted,

• New transmission of business rules (buying and selling a business and your people),

• Union restrictions,

• The scrapping of the ‘no disadvantage test’.

Will these changes affect my Business!

With these changes to the industrial relations systems comes complexity. It will be a very lax business that enters this new era without some understanding of how these changes may affect their business.

Some examples include,

• Small business owners will need to understand the broader concepts of employer obligations applicable to their unique business situation.

• Your 'Accounting' software may need minor changes (in some instances).

• You will be ill advised to terminate an employee before taking advice even if you have less than 100 employees. Employees are already starting to make claims for unlawful dismissal i.e. discrimination.

• The cost of defending a discrimination claim is dramatically higher than unfair dismissal. In one case we were involved in recently for age discrimination the legal fees for defending the case were quoted at $30,000 and this was before any settlement of the matter.

• The changing of awards and agreements will add a layer of complexity to business until the transitional phase has passed (5 years).

• If you intend to purchase a business you would be advised to appraise yourself of the transmission of business changes.

In conclusion business owners will now need to grapple with a new layer of complexity.

Biz Momentum are up to date with work choice changes and can assist your business.

You will find other helpful free articles athttp://www.biz-momentum.com

Philip Lye is CEO of Biz Momentum which provides service is Employee and Industrial Relations, Human Resource Management and Workplace Health & Safety.

Philip assists small to medium businesses manage their people needs.

Visit http://www.biz-momentum.com for other helpful articles.

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