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Questions & Answers - NES - general questions

Question 1

Date: 21/07/2009

Question:

I have been advised by Fair Work Australia that the 10 NES apply to all staff including contract of employment staff earning over $100K pa - is this correct?

Answer:

Yes, that's correct.

Question 2

Date: 06/08/2009

Question:

We have collective agreements that have been extended to 2011 & 2012. I am after confirmation please that the conditions in the new underpinning modern award where more favourable than those in our existing collective agreement will not have any force until the agreements expire or are renegotiated.

Also confirmation please that the conditions of the National Employment Standards if/where more favourable will apply from 1/1/2010.

Answer:

Yes the EBA (and we are assuming that it is a pre Work Choices collective agreement) will prevail over the modern award where there is inconsistency – but otherwise the modern award will underpin the EBA.

Also, the conditions of the National Employment Standards if/where more favourable will apply from 1/1/2010.

Question 3

Date: 10/08/2009

Question:

How will the introduction of NES impact on pre-Fair Work agreements?

Answer:

Terms in all existing statutory agreements cannot make provision that is less favourable than a corresponding provision in the NES.

Question 4

Date: 10/08/2009

Question:

Are small employers (i.e. less than 15) with staff not covered by a Modern Award required to pay severance pay under the NES?

Answer:

No.

Question 5

Date: 10/09/2009

Question:

Has the implementation of Modern Awards and/or the NES been delayed until the 1st of July, 2010?

Answer:

No, NES and modern awards will commence on 1 January 2010 but any additional obligations to pay more will not commence until 1 July 2010 and then will be phased in 5 equal annual instalments of 20%.

Question 6

Date: 05/11/09

Question:

With the implementation of NES in Jan 2010, what changes or modifications do we need to do in the employment contracts? Will it be ok to inform the employees about their entitlements and review our company policies?

Answer:

Strictly speaking, you do not need to change your employment contracts be-cause the NES will override them to the extent of any inconsistency. It would be sufficient to advise employees about their new entitlements and review your company policies to ensure they are consistent with the NES. However, many employers prefer to amend their standards contracts of employment to reflect new provisions in order to avoid uncertainty.