Minimum statutory entitlements

Introduction

Since changes to federal legislation were proclaimed in March 2006 there are now five conditions that are required to be incorporated in every Australian Workplace Agreement (AWA). Any extra conditions than those five require negotiated agreement of the employer and the employee. The employer and employee, for example might agree that a condition of an AWA is that the employee can work from home one day per week. The five compulsory (mandatory) conditions are:

1. minimum rates of pay (including loadings for casual workers)
   
   
2. standard hours of work
   
   
3. parental leave (including adopted children)
   
   
4. annual leave (holiday leave); and
   
   
5. personal leave (sick leave and carer's leave).

See animation 1 and image 1

The Office of Employment Advocate (OEA) is a new federally-appointed statutory body, which sets and monitors the Australian Fair Pay and Conditions Standard (AFPCS), a standard that states the minimum statutory entitlements. The Australian Industrial Relations Commission (AIRC) will no longer have authority in setting minimum wages and conditions, but it will retain control of 'safety net' award conditions. In addition, another new body, the Australian Pay and Classification Scale (APCS) will control pay standards in above-award wage negotiations. See images 2 and 3

Minimum wages and rates of pay

Australian workers will be entitled to a new 'Fair Minimum Wage' (FMW) payment of at least $12.75 an hour (or the APCS classification). This pay rate applies in 'ordinary hours' (negotiated minimum hours), therefore after ordinary hours are completed, there will be no guarantee of a higher/overtime rates of pay (unless this is negotiated in contract with an employer).

Standard hours of work

In reality, the new workplace and employment legislation cannot guarantee maximum ordinary hours, but it does guarantee standard hours (between 38 and 40). An employee can be made to work 'reasonable additional hours', representing a new discretionary power for employers.

Parental, annual and personal leave

Parental leave is a minimum statutory entitlement of 52 weeks unpaid leave, for such things as maternity or caring for children. Annual leave remains at four weeks and now there is new option for 'bargaining away' this, by receiving pay instead. Personal leave (sick leave and carer's leave) provides ten days paid leave over twelve months, two days unpaid carer's leave and two days paid compassionate leave (for grieving the death of loved ones).