Impact of employer association membership and WorkChoices

Q&A

Impact of employer association membership and WorkChoices

WorkChoices has generated some issues relating to the correct award or agreement applying to a business.

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WorkChoices has generated some issues relating to the correct award or agreement applying to a business. An issue arising from the resignation of a business from an employers' association is considered here.

Q. Our company recently resigned from a federally registered employer association, membership of which automatically bound us to a particular pre-reform Federal award. Consequently, do we now have to change the employment conditions of our employees to reflect the minimum provisions under the relevant State NAPSA (which are considerably different) because of this resignation?

A. The answer is no.

An employee's employment provisions, for the purposes of WorkChoices, are those contained in the applicable industrial instrument covering the employee on the date WorkChoices became law (27 March 2006).

In this case, the pre-reform Federal award (and the wages and classification structure) was the applicable industrial instrument on that date, therefore it will continue to apply to these employees until replaced by a new workplace agreement, or a new industry award is introduced at some stage in the future by the Australian Fair Pay Commission.

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