Most modern Awards have been amended to incorporate the following key changes in recent weeks:
- Casual conversion rights – see Part 1 of our Blog for more information;
- Requests for flexible work arrangements – see below;
- The timing of termination payments – see below; and
- Limitations on deductions for failing to provide notice – see below.
Most of these changes have already taken effect and impact all employers who are covered by a Modern Award (or who are in the process of negotiating a new enterprise agreement). Many of the changes merely relate to the simplification of existing wording, however, there are several substantive changes that relate to the above and that have already come into operation.
To ascertain whether these changes affect your business, you should obtain an updated version of the relevant Modern Award(s) that govern the employment of your staff.
Request for flexible work arrangements
From 1 December 2018, all Modern Awards will be varied to include a model clause regarding requests for flexible work arrangements made under the National Employment Standards.
Before you (the employer) can reject a request for a flexible work arrangement, you will need to have discussions with your employee and genuinely try to reach agreement on an appropriate change to arrangements.
In any event, you will need to provide your employee with a written response within 21 days, stating whether you grant or refuse to grant the request and setting out the reason for any refusal. Your Modern Award may also require you to:
- Include the business ground(s) on which your refusal is based and how that ground(s) applies;
- Advise whether there are any changes in working arrangements that you can offer the employee to accommodate their needs;
- If you can offer any change in work arrangements, then set out those changes that you can offer.
If you cannot come to a suitable agreement, your employee has the option of raising a dispute under the dispute resolution clause in the award (and therefore ultimately seek a determination from the Fair Work Commission), if they are not satisfied with your response to their request.
These changes are in addition to an employee’s rights under the National Employment Standards.
You should ensure that your business has appropriate policies and procedures in place regarding the making and management of requests for flexible work arrangements.
If you require assistance with your flexible work requests policy and procedure, application form and other associated documentation, contact HR Australia to enquire how we can assist you.
Requirements for termination payments
Modern Awards have been amended with respect to the timing of termination payments and the ability to withhold money where an employee fails to give sufficient notice of termination
Most Modern Awards now require that:
- termination payments are made within 7 days of termination; and
- no more than one week’s pay is withheld in circumstances where an employee fails to give the required period of notice (restrictions may apply).
You need to review the provisions in the applicable award(s) that your business relies upon and update your template contracts and termination policies & procedures to ensure that these new requirements are complied with.
Important Note:
Please note that the policies and procedures that are contained within the HR Australia Manual are generic. If you require assistance to ensure that the policies and procedures your business is going to use are consistent with the Modern Award that affects your business, then let us know and we can assist you to draft policies and procedures that are specific to the needs of your business.
In any event, you should always ensure that you check your Modern Award and ensure that any policy or procedure that you do intend to rely upon is consistent with the provisions set out in the Modern Award and in the National Employment Standards.