Terminating a preserved State agreement

Q&A

Terminating a preserved State agreement

Employers that are considering a new WorkChoices agreement or just terminating a pre-WorkChoices agreement need to address some issues arising from their current coverage.

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Employers that are considering a new WorkChoices agreement or just terminating a pre-WorkChoices agreement need to address some issues arising from their current coverage. A recent inquiry focused on preserved State agreements.

Q. We have a preserved State agreement that we wish to terminate. The agreement has passed its nominal expiry date.

What is the appropriate process we need to follow in order to terminate this agreement and what conditions of employment will cover our employees who were previously covered by the terminated preserved State agreement?

A. Application may be made to the Australian Industrial Relations Commission, by either party, to terminate a preserved State agreement (PSA).

Under WorkChoices, the same rules that applied under the pre-reform laws for terminating an expired Federal agreement apply to a preserved State agreement. Consequently, a public interest test has to be met.

Terminating and not replacing

In terminating and not replacing a preserved State agreement under WorkChoices, the employee is entitled to the relevant minimum wage under the Australian Pay and Classifications Scale, including casual loading.

The employee is also entitled to the minimum entitlements under the WorkChoices Standard — annual leave, personal/carer's leave, maximum ordinary weekly hours, and unpaid parental leave.

Other minimum entitlements prescribed by the WRAct are also applicable, eg notice by the employer, paid public holidays, meal breaks, preserved redundancy entitlements (if provided in the PSA) for 12 months, and 'protected award conditions' (where a PSA is terminated on or after 15 December 2007). These 'protected award conditions' are rest breaks, incentive payments and bonuses, annual leave loadings, observance and substitution of public holidays, monetary allowances, loadings for overtime and shift work, penalty rates, and outworker conditions.

Related

Doing nothing is a choice under WorkChoices - preserved State agreements


  

 

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