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Common Rule and how it affects your business

By on February 17, 2005

As of the 1st of January 2005 the employment conditions have changed for all Victorian employers and employees who were not covered by Federal Awards.

The process of moving some 350,000 Victorian employees to Common Rule Federal Awards has commenced. Ninety Awards were declared Common Rule as of the 1st January, and there is up to 200 Awards in the next stage.

Both employers and employees who were under the State Award system will be covered under the Federal Award system.

Employers are now required to pay the Federal Award rates, allowances and conditions, as a minimum.

For example, the Federal Quarry Award has been declared, which now means employers are required to pay the Award rates, plus allowances and all other conditions in the Award.

If you are paying more than the hourly rate, you still have to pay the allowances unless you have an employee contract. If your hourly rate is higher than the Award and this is a set rate for more than 38 hours, you need a contract to enforce this condition.

You will require a written contract to enforce any conditions that are different from the Award.

If you wish to pay a higher rate but no allowances, the only way you can get out of paying these allowances is to have an employee contract which builds these allowances into the hourly rate.

Employers now have 3 options:

  1. Payment of wages and conditions to the letter of the Federal Award.
  2. Create an Enterpise Bargaining Agreement (EBA) with your employees. This can be done with or without the union. Keep in mind that this type of agreement will be ratified in the Australia Industrial Relations Commission and will then become a public document.
  3. Australian Workplace Agreements (AWA) This type of agreement is prepared between you and your employees, and is then sent to the Employment Advocates Office for stamping.
  4. Payment of wages above that listed in the Award as long as all Award conditions are paid.

All agreements have to go through a no disadvantage test with the Award as a base or a minimum. These agreements must be on a par with the Award as far as total remuneration.

For further comments please contact:
Ashley Cox
0428 593 207
or via email at ashleycox@iprimus.com.au
To download a copy of the Quarry Award, please visit www.wagenet.gov.au

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