New national employment standards

The Government has finalised and released the National Employment Standards (NES) which will guarantee minimum terms of employment for all employees covered by the Federal workplace relations system as of 1 January 2010.

The release of the NES coincides with a request to the Australian Industrial Relations Commission (AIRC) to modernise awards. Therefore also as of 1 January 2010, all modern awards must meet the minimum standard set out in the NES. However, the AIRC will retain the flexibility to add provisions to the modern awards, provided they are not detrimental to employees.

The minimum working conditions guaranteed by the NES, some of which were already in place under WorkChoices, will include the following:

Maximum Weekly Hours

For full-time staff a maximum of 38 hours per week will apply. Although employers will have the right to request that staff work additional hours, employees may refuse such a request if it is considered unreasonable.

Working Arrangements and Parental Leave

Employees may request flexible hours and working patterns where they are responsible for the care of a child. Once the child is born, unpaid parental leave for 12 months is available to all parents, including de facto and same sex couples. An additional 12 months leave may be granted on request.

Flexible arrangements and extensions on parental leave are only available to staff that have been employed continuously for 12 months. Employers may refuse requests by the employee on reasonable business grounds.

Annual, Personal, Carer's and Compassionate Leave

Annual leave will remain at four weeks per year. Some modernised awards may permit employees to cash out their annual leave for the full amount the employee is entitled to.

Carer's leave and compassionate leave is limited to two days per occasion where the employee can provide sufficient proof of the need to take leave.

Termination and Redundancy

The NES sets out the period of notice required to be given by employers when terminating an employee’s employment which is dependent on length on employee service. One year of service requires a minimum of one week’s notice whereas five years’ service requires a minimum of four weeks' notice. The required period of notice is increased by one week if the employee is over 45 years old and has completed at least two years of continuous service.

Redundancy pay is not available if:

	the person has been employed for less than 12 months or
	there are less than 15 staff members in the business or
	the employee’s employment is terminated due to the ordinary and customary turnover of labour.

Fair Work Information Statement

The NES requires employers to provide new employees with a Fair Work Information Statement which will contain information about the NES, modern awards, agreement-making, the right to freedom of association and the role of Fair Work Australia.

Published : 18 June 2009