The New Year in Australia brings new industrial relations laws.

The Federal Government’s Fair Work changes – the new National Employment Standards and the Modern Awards System – are now in effect since January 1, 2010.

The National Employment Standards, (part of the Fair Work Act 2009), aims to provide a safety net of minimum terms and conditions of employment, and brings with it changes franchisors and franchisees need to be aware of.

If you’re a franchisor, you may find value in pointing these changes out to your franchisees (if you haven’t already done so), so they (and you) can avoid any potentially damaging legal action in the franchise network.

Employers who breach the workplace laws may have proceedings undertaken against them by the Fair Work Ombudsman.

As part of the National Employment Standards all new employees must receive the Fair Work Information Statement, which outlines changes.

It’s also recommended you distribute the Fair Work Information Statement to your current employees.

Highlights of the industrial relations reforms include:

• Providing flexible work arrangements: Providing there are no ‘reasonable business grounds’ employees may request flexible working arrangements, such as different working hours, working from home, etc to care for school aged children.

• Modern Awards: Modern Awards are industry or occupation-specific awards providing additional enforceable minimum employment standards. Depending on the industry, the Awards may include terms on minimum wages, penalty rates, types of employment, rest breaks and more. There is a miscellaneous Award that covers employees not covered by any other Modern Award.

• Double the Parental Leave: Already employers need to allow for up to 12 months unpaid parental leave, but now employers are required to offer an additional 12 months (a total of two years) unpaid leave – providing it’s not unreasonable on the company. It now applies for same sex couples also.

• Redundancy Pay: Redundancy pay is now a must for any company with 15 or more employees. It ranges from four weeks to 16 weeks wages depending on the length or service, and must be paid straight away.

A complete copy of the National Employment Standards can be accessed at www.fairwork.gov.au

The ten minimum workplace entitlements

The ten minimum workplace entitlements in the National Employment Standards, outlined in the Fair Work Information Statement include:

1. A maximum standard working week of 38 hours for full—time employees, plus ‘reasonable’ additional hours.
2. A right to request flexible working arrangements to care for a child under school age, or a child (under 18) with a disability.
3. Parental and adoption leave of 12 months (unpaid), with a right to request an additional 12 months.
4. Four weeks paid annual leave each year (pro rata). 
5. Ten days paid personal/carer’s leave each year (pro rata), two days paid compassionate leave for each permissible occasion, and two days unpaid carer’s leave for each permissible occasion.
6. Community service leave for jury service or activities dealing with certain emergencies or natural disasters. This leave is unpaid except for jury service.
7. Long service leave.
8. Public holidays and the entitlement to be paid for ordinary hours on those days.
9. Notice of termination and redundancy pay.
10. The right for new employees to receive the Fair Work Information Statement.

However, some conditions or limitations may apply, such as some exclusions for casual employees.

A complete copy of the National Employment Standards can be accessed at www.fairwork.gov.au

Further information on the Fair Work Ombudsman

Contact the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au

Futher information on Fair Work Australia

Fair Work Australia is the national workplace relations tribunal and can be reached on 1300 799 675 or at www.fwa.gov.au

If you have any concerns on the new industrial relations laws you may also wish to seek advice from an industrial relations lawyer.