8.Employment law

The past decade has seen significant changes to employment law both in Victoria and nationally. In Victoria, the employment law landscape is simpler than elsewhere as only one system of industrial law applies. The legal picture for employers and employees, however, is still very complicated.

On 27 March 2006, as part of the former Coalition government's program of national workplace relations reform, substantial amendments to the Workplace Relations Act 1996 (WRA) came into effect. The purpose of these reforms was to achieve ‘a flexible, simple and fair system of workplace relations.’ Whether that purpose has been achieved is a matter of some debate.

The 2006 reforms further reduced the importance of awards, and effectively gave employers and employees the ability to ‘opt-out’ of the award system. The system encouraged direct bargaining at the individual workplace level, and provided for both collective and individual agreements.

The new Labor Government has promised to substantially amend the 2006 reforms, with its focus being on strengthening the award system, introducing a new system for unfair dismissals and abolishing the option of individual agreements. Most of these changes will not come into effect until 1 January 2010, which will hopefully give employers sufficient lead-in time to familiarize themselves with the new system and make any necessary changes to their arrangements.

However, it is important to note that there will also be a high degree of continuity. The national workplace relations system will remain, and the new government has promised to complete the ‘award simplification’ process begun by the previous government. It is likely that the wide range of awards currently governing rural enterprises will be rationalized into a small number of simpler ‘modern awards’.

Another feature of the 2006 reforms which is likely to remain is the increased penalties for their breach. There will remain a greater onus on employers to ensure they comply with the law.

The information provided here is designed to help the smaller employer to come to terms with their legal obligations. It also provides advice on when and how to call for professional help, which is more necessary these days than in the past.

The Victorian Governments Business in Victoria website contains further information in relation employers' obligations in relation to employment law and other laws. To view a webpage containing such information go to the Business in Victoria website - www.business.vic.gov.au .