Australia: Transmissions of Business Under WorkChoices

WorkChoices (the amendments to the federal workplace relations legislation) commenced this Monday, 27 March 2006.

Parties involved in transmissions of business where employees are transferring should note that:

• incoming employees will continue to be bound, as under previous legislation, by the industrial instruments (awards, certified agreements, Australian Workplace Agreements) which apply to transferring employees (unless an application is made to the Australian Industrial Relations Commission)

• there is now a limited period during which these instruments will apply

• other terms and conditions other than those set out in industrial instruments, long service leave or parental leave, will continue to be negotiable

• incoming employers must provide written notification in relation to certain matters to transferring employees with 28 days of the transmission

• incoming employers must lodge notices with the Office of the Employment Advocate (a government department) within 14 days of the written notification to employees as described above

• outgoing employers must provide information to incoming employers in relation to transferring employees on parental leave within 14 days of transmission

Given the penalties of up to $33,000 which may be imposed on employers for failing to comply with some of the WorkChoices provisions, including the notification provisions, employers involved in transmissions of business should seek advice in relation to their obligations in respect of transferring employees.

Note that transmissions are generally deemed to occur where a business or part of a business is sold or transferred to another entity that performs the same or similar business activities to the vendor entity.
By Kathryn Dent

Please contact our Workplace Relations Division if you would like further information.

Gadens Lawyers has produced a series of updates on WorkChoices. Click here...

This publication is provided to clients and correspondents for their information on a complimentary basis. It represents a brief summary of the law applicable as at the date of publication and should not be relied on as a definitive or complete statement of the relevant laws.