KEY EMPLOYMENT DATES FOR 2011

On 1 January 2011, a number of key changes, and entitlements, came into effect under the Fair Work Act 2009 (Act) which may impact on employers. The more significant of these are:

  •  Unfair dismissals: As of 1 January 2011, a Small Business Employer is an employer with 15 employees or less on headcount (including full-time, part-time, regular and systematic casual employees, and employees in associated entities). It’s no longer calculated based on 15 full-time equivalent employees. Employees of Small Business Employers must serve a minimum period of employment of 12 months before they can commence unfair dismissal proceedings. For larger employers, this period is 6 months.
     
  • Redundancy: From 1 January 2011, the redundancy scale in the National Employment Standards (NES) will impact upon employers. The NES provide any employee with 12 months continuous service with an entitlement to 4 weeks’ redundancy pay and this entitlement increases with the length of service. The entitlement to a redundancy payment is in addition to notice of termination. Previously employees who weren’t covered by an award or enterprise agreement weren’t entitled to a redundancy payment. Importantly, the redundancy entitlement in the NES doesn’t exclude any greater entitlement an employee may have under an award, enterprise agreement, contract of employment or redundancy policy. 
     
  • Any employers that were State system employers covered by State awards prior to 1 January 2010, will be subject to the Federal Modern Awards from 1 February 2011 and will need to pay employees in accordance with these awards from this date. It is possible to phase in any increase or decrease in the pay rates, loadings and penalties until 1 July 2014. Employers need to determine the appropriate awards for their employees.

KEY POINTS: Employers should determine whether they’re a Small Business Employer. When terminating an employee for redundancy reasons, all employees are now entitled to a redundancy payment. However, generally, employees of Small Business Employers aren’t entitled to a redundancy payment but exceptions may apply due to transitional provisions in awards.