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Fair Work Amendment (Pay Protection) Bill 2016

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2016

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

Fair Work Amendment (Pay Protection) Bill 2016

 

 

 

EXPLANATORY MEMORANDUM

and

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

 

 

 

 

 

 

Circulated by authority of

Adam Bandt MP



Fair Work Amendment (Pay Protection) Bill 2016

 

 

OUTLINE

 

The Bill amends the Fair Work Act 2009 to extend protections for employees covered by an enterprise agreement to require employers to pay a base rate of pay, full rate of pay and any casual loading that is no less than the relevant award or national minimum wage order. This is done primarily by extending the protections that currently apply against enterprise agreements undercutting the award or minimum wage order ‘base rate of pay’ to now apply to the ‘full rate of pay’, which is defined in section 18 to include loading, overtime and penalty rates.

 

FINANCIAL IMPACT

 

The bill will have no financial impact.

 

NOTES ON CLAUSES

 

Clause 1 - Short title

 

Sets the title of the Act.

 

Clause 2 - Commencement

 

States the Act will commence on the day it receives the Royal Assent.

 

Clause 3 - Schedules

 

Clause 3 gives effect to the Schedules. It provides that legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

 

Schedule 1 - Amendments of the Fair Work Act 2009

 

Item 1 - Subsection 16(3) (note)

Omits “base rate of pay” and substitutes “rate of pay”.

 

Item 2 - End of section 18

 

Adds subsection 18(3) which prescribes regulations may determine the full rate of pay for an employee who is a pieceworker for the purpose of section 206. Section 206 deals with an employee’s rate of pay under an enterprise agreement.

 

Item 3 - Division 6 of Part 2-4 (heading)

 

Replaces heading with Division 6 - Rates of Pay under enterprise agreements

 

Item 4 - Section 206 (heading)

 

Omits Base rate of pay” and substitutes “Rates of pay ”.

 

Item 5 - Subsection 2016(1)

 

Substitutes “the base rate of pay” wherever it occurs for “the full rate of pay”.

 

Item 6 - Subsections 206(3) and (4)

 

Extends current protections to require the base rate of pay and any casual loading payable to the employee under the enterprise agreement be no less than the national minimum wage order.

 

Item 7 - Section 282

 

Extends current protections for employees not covered by a modern award and to whom an enterprise agreement applies to require the employees’ base rate of pay and any casual loading to be no less than the national minimum wage order.

 

Item 8 - Section 282

 

Extends current protections for employees covered by a modern award and to whom an enterprise agreement applies to require the employees’ full rate of pay to be no less than the award.

 

Item 9 - Application of amendments

 

The amendments apply to enterprise agreements made before, on or after the day on which this schedule commences. However amendments also have the effect they would have if they were confined to enterprise agreements made on or after the day on which this schedule commences.

 

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Fair Work Amendment (Pay Protection) Bill 2016

 

This bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .

 

Overview of the bill

 

The Bill amends the Fair Work Act 2009 to extend protections for employees covered by an enterprise agreement to require employers to pay a base rate of pay, full rate of pay and any casual loading that is no less than the national minimum wage order or award.

 

Human rights implications

 

This bill does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This bill is compatible with human rights because it does not raise any human rights issues.

 

 

Adam Bandt MP