The Australian Retailers Association (ARA) has welcomed the Fair Work Commission’s plan to undertake a “fundamental review” of how part-time provisions are written into the awards system, which could alter the way businesses manage working arrangements with their staff.
The Fair Work Commission (FWC) last week released its final report from the 2023-2024 Modern Awards Review, highlighting areas in the award system it believes warrant further attention.
It concluded that the way part-time work is handled in the existing award system warrants a second look, in what could have significant implications for businesses across retail, hospitality, and food service.
A new review, commencing in 2025, will assess how part-time work is handled in seven widely-used awards:
The review will consider factors like how the hours of employment are established in part-time arrangements; the days, hours, and finishing times of those working arrangements; and the circumstances in which those arrangements can be altered.
The goal, the FWC said, is to consider the normalisation of standards across commonly used awards — and the creation of a standard model for use across the system.
“Unless there are good reasons for variation in respect of specific industries or occupations, the objective of such a review will be to establish a standard model for part-time employment in place of the variety of provisions which currently exist,” it said.
The Australian Retailers Association, which represents a sector where many smaller operators rely on the General Retail Industry Award 2010 (GRIA), has welcomed the news.
“The ARA has been calling for increased flexibility in part-time work arrangements for both employees and employers,” Paul Zahra, ARA CEO, said in a statement provided to SmartCompany.
Its submission to the 2023-2024 FWC review said the GRIA should be amended to ensure part-time work is “readily available and viable across all parts of the retail sector”.
Its plan “has a number of proposals within it to provide flexibility for part-time workers,” Zahra said.
Ultimately, the FWC found reason to believe it should examine more than just the GRIA.
The FWC’s broader focus still “recognises that these challenges extend beyond retail and provide us with an opportunity to enable a strategic and holistic review of part time arrangements across the economy,” Zahra continued.
Other industry participants have also welcomed the chance to rethink how part-time work is handled in awards.
On Tuesday, Australian Council of Trade Unions president Michele O’Neil framed the matter as one of “roster justice”, which could simplify the way workers negotiate part-time hours.
“Unions want to see roster justice so that working Australians juggling work and family life have a fairer system of hours, rosters and shifts,” she said.
“There is a clear need for better rights so workers can have secure and reliable rosters that accommodate caring responsibilities.”
Additionally, the FWC will consider how, and if, the Clerks Award can be altered to consider WFH provisions.
The 2023-2024 review heard the Clerks Award was particularly likely to include workers who do WFH but negotiate those allowances with employers on a case-by-case basis.
“The term is intended to be one which facilitates employers and employees making workable arrangements for working at home and removes any existing award impediments to such arrangements,” the FWC said.
Notably, any term developed could serve as a model for incorporation in other awards, the FWC said, suggesting those rights and responsibilities could enter the workplace at a foundational level.
Industry groups are already opposed to such a proposal.
“It is not appropriate to include industry-wide ‘rights’ to work from home in modern awards,” the Australian Chamber of Commerce and Industry said in its submission to the 2023-2024 review.
“Such terms can be negotiated through enterprise bargaining or can (as is evident) arise organically at individual workplaces or in certain industries.”
The new FWC proceedings will kick off next month.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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