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Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017

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2016-2017

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

Fair Work Amendment (Repeal of 4 Yearly Reviews and Other Measures) Bill 2017

 

 

( 1 )     Clause  2 , page 2 (table item  3 , column headed “ Provisions ”), omit “ 2, 3 and 4 ”, substitute “ 2, 3, 3A and 4 ”.

[protecting take-home pay]

( 2 )     Page 15 (after line 8) , after Schedule  3 , insert:

Schedule 3A Protecting take-home pay

Fair Work Act 2009

1  Section 12 (definition of reduction in take-home pay)

Repeal the definition, substitute:

reduction in take-home pay :

                     (a)  in relation to the cessation of copied State awards—see subsection 768BR(3); and

                     (b)  in relation to the variation of modern awards—see subsection 135A(5).

2  Section 12 (definition of take-home pay)

Repeal the definition, substitute:

take-home pay :

                     (a)  in relation to the cessation of copied State awards—see subsection 768BR(2); and

                     (b)  in relation to the variation of modern awards—see subsection 135A(4).

3  At the end of Division 2 of Part 2-3

Add:

135A   Protecting take-home pay

Object of this section

             (1)  The object of this section is to ensure that no employee’s, or prospective employee’s, take-home pay is reduced as a result of a variation of a modern award.

FWC cannot reduce take-home pay

             (2)  A modern award cannot be varied in a way that would, or would be likely to, reduce the take-home pay of any employee covered by the award.

Determinations reducing take-home pay of no effect

             (3)  A determination of the FWC made on or after 22 February 2017 that would, or would be likely to, have the effect of reducing the take-home pay of any employee covered by a modern award is of no effect.

Definition of take-home pay

             (4)  The take-home pay of an employee covered by a modern award is the pay the employee actually receives, or would receive if increases in the modern award minimum wage were included in the employee’s pay:

                     (a)  including wages and incentive-based payments, and additional amounts such as allowances and overtime; but

                     (b)  disregarding the effect of any deductions that are made as permitted by section 324.

Note:          Deductions permitted by section 324 may (for example) include deductions under salary sacrificing arrangements.

Definition of reduction in take-home pay

             (5)  An employee covered by a modern award suffers a reduction in take-home pay through a variation of the award if the amount of the employee’s take-home pay for working particular hours or for a particular quantity of work would be less after the variation than it would have been before.

[protecting take-home pay]