02/02/2010

In December 2009 the NSW Parliament passed laws referring employment law powers for employees of sole traders and partnerships to the Federal Parliament and therefore these employees are now covered by the Fair Work Act 2009.

 

Until the NSW Parliament passed the recent law, the Fair Work Act relied on the “corporations power” in the Constitution and therefore did not cover employees employed in NSW by sole traders or partnerships.  Those employees had, until 1 January 2010, remained under the state industrial relations law.

 

The new NSW law has the effect that the employees of sole traders and partnerships are now governed by the Federal Parliament and the Fair Work Act.

 

Some of the major changes in the Fair Work Act that employers should be aware of include the following:

 

1.             The establishment of 10 National Employment Standards (NES)

·               Maximum weekly hours

·               flexible working arrangements

·               parental leave and related entitlements

·               annual leave

·               personal/carers leave and compassionate leave

·               community service leave

·               long service leave

·               public holidays

·               notice of termination and redundancy pay

·               Fair Work Information Statement (produced by the Fair Work Ombudsman)

 

2.             Unfair dismissal law changes

·              Introduction of Small Business Fair Dismissal Code and checklist of questions for employers.

 

3.             Change to the transfer of business rules affecting employee entitlements

·              Consideration of the transfer of assets, outsourcing and related entity transfers and a focus on whether the employee is performing the same or substantially the same work for the new employer.

 

4.            Introduction of Modern Awards at a Federal level to replace the myriad of existing Federal and State awards. 

If you have any questions in regard to employment law & the new Fair Work Act, please contact David Nicoll of TOWNSENDS BUSINESS & CORPORATE LAWYERS on
(02) 8296 6222.