Commonwealth of Australia Explanatory Memoranda

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WORKPLACE RELATIONS AMENDMENT BILL 1997

WORKPLACE RELATIONS AMENDMENT BILL 1997


OUTLINE

The Workplace Relations Amendment Bill 1997 will amend the Workplace Relations Act 1996 to exclude new employees of small businesses from the operation of the Federal unfair dismissal provisions.

Section 170CE of the Workplace Relations Act provides that an employee whose employment has been terminated by the employer may apply to the Commission for relief on the ground that the termination was harsh, unjust or unreasonable, on the ground of an alleged contravention of section 170CK, 170CL, 170CM or 170CN, or on any combination of these grounds.

The amendments to be made by Schedule 1 to this Bill will provide that an employee (other than an apprentice), who is first engaged by the relevant employer after the commencement of the Bill, will not be able to make an application on the ground that the termination of his or her employment was harsh, unjust or unreasonable, or on grounds including that ground, if he or she was employed by an employer who employed no more than 15 employees.

The exclusion will not affect:

- the rights of existing employees;

- the rights of apprentices; or

- the rights of small business employees to take action against unlawful termination of employment.


FINANCIAL IMPACT STATEMENT

This Bill has no significant impact on Commonwealth expenditure.

NOTES ON CLAUSES

Clause 1 - Short title

This provides the Act’s short title.

Clause 2 - Commencement

This Act commences on Royal Assent.

Clause 3 - Schedule(s)

This provides for the effect of the Schedule in amending the Act to which it relates.

Workplace Relations Act 1996

Item 1 - Subsection 170CE(1)

1. This item is consequential on the amendment made by item 2, which includes a new subsection 170CE(5A) in section 170CE. This item accordingly inserts a reference to new subsection 170CE(5A) into subsection 170CE(1).

Item 2 - After subsection 170CE(5)

2. This item inserts two new subsections in section 170CE.

3. Section 170CE sets out the prerequisites for an application to be lodged with the Commission in relation to a termination. Subsection 170CE(1) provides that an employee whose employment is terminated by the employer may apply to the Commission for relief on the ground that the termination was harsh, unjust or unreasonable, on the ground of an alleged contravention of section 170CK, 170CL, 170CM or 170CN, or on a combination of these grounds.

New subsection 170CE(5A)

4. This section will provide that an application may not be made under subsection 170CE(1) on the ground that the termination was harsh, unjust or unreasonable (or on grounds that include that ground) by an employee (other than an apprentice) if:

• the employee was first employed by the employer on or after the commencement of this amending Act; and

• new subsection 170CE(5B) applies to the employer.

5. In this subsection, the term ‘apprentice’ is to have its ordinary meaning.

6. It should be noted that apprentices may be excluded from the operation of the unfair dismissal provisions because they are engaged under a contract of employment for a specified period of time (within the meaning of Regulation 30B of the Workplace Relations Regulations). However, this will depend on the particular contract or indentures of apprenticeship. This amendment is not intended to affect the application of the regulations.

New subsection 170CE(5B)

7. This section applies to an employer for the purposes of subsection (5A) if, at the time the employer gave the employee notice of the termination, or terminated the employee’s employment (whichever happened first), the employer employed no more than 15 employees.

8. The new subsection provides clarification as to which employees are to be counted, for the purpose of establishing whether the employer employed more than 15 employees at the relevant time. Firstly, for the removal of doubt, it is provided that the employee whose employment was terminated is to be counted. Secondly, it is provided that any casual employee is not to be counted, unless that employee had been engaged on a regular and systematic basis for a sequence of periods of employment of at least 12 months (that is, the employee had been engaged on a regular and systematic basis at least 12 months before the time at which the employees are counted, and the employee was still engaged on a regular and systematic basis at the time at which the employees are counted).













1997

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA


HOUSE OF REPRESENTATIVES



WORKPLACE RELATIONS AMENDMENT BILL 1997


EXPLANATORY MEMORANDUM





(Circulated by authority of the Minister for Industrial Relations,
the Honourable Peter Reith MP)

 


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