Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
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this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and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