Business & Finance Careers & Employment

The Effects of IR Laws on Employees

    Unfair Dismissals

    • New IR laws are meant to address several provisions under the Work Choices legislation, particularly unfair dismissals. Under the changes that went into effect in January 2010, employees are given more power over claiming such. Previously, employees who worked for firms with more than 100 workers were allowed to file such claims. Under the new IR laws, only businesses employing 15 or fewer workers will be excused from such a provision. This means that unless an employee is working for a very small organization, he is entitled to file unfair dismissal claims. If employees working for smaller firms wish to file an unfair dismissal claim, they have to be employed for a minimum of six months. Workers can work out a deal with their employer within 12 months to settle the case. If the employer cannot settle the dispute within this time, the employees have the right to claim for proceedings.

    Bargaining

    • Under the new set of IR laws, the way employees can negotiate the terms of their contract is also effected. Employees now have the power to negotiate their contracts with their employers, given that a majority of their fellow workers provide their consent to the negotiating terms. For instance, if employees want to change any terms, the negotiation should be initiated under the "good faith" and welfare of the majority. There has to be a consensus when petitioning amendments or new provisions to the working contract. Previously, provisions under the Australian Workplace Agreements, or AWAs, only gave preference to individual negotiations between companies and their employees.

    Right of Entry for Unions

    • Unions can now enter a workplace whether or not they have a member working for that firm. New IR laws offer employees a chance to seek representation when it's deemed necessary. Unions only need to file permission and get approved under Fair Work Australia to be able to establish themselves within organizations. Instead of having to sign non-union inpidual contracts, they now have the option to get unions to represent them.

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