Australian building service contractors are being encouraged to plan their industrial relations strategy to ensure they comply with the new industrial relations laws there.

“As we are entering a period of significant change to industrial relations laws, labour intensive businesses such as cleaning contractors need protect themselves against risk of action for non-compliance”, warns Rodney Barnes, National President of the Building Service Contractors Association (BSCAA).

He says contractors need to be aware of major changes that came into effect on 1st July and other provisions that will be phased in from 1st January 2010.

IR consultant Ruth Frenzel of EMA Consulting says: “The most important changes that have just been implemented under the Fair Work Act which affect the cleaning industry nationally are the unfair dismissal laws, bargaining and transfer of business.

“Effective from July 1, small employers are defined as having 15 full time equivalent or less. This will change in January 1, 2011 when the test will be a head count of 15 or less. From 1st July 2009, small employers must be able to demonstrate compliance with the 'fair dismissal code' under the Fair Work Act 2009 to be exempt from unfair dismissal proceedings.

"The exemption from an unfair dismissal claim for genuine operational reasons has been discontinued. This means that terminations due to redundancy can now be the subject of an unfair dismissal application. Employers will need to demonstrate that they selected employees for redundancy fairly and equitably, and that they have explored redeployment options for such employees.

"There are also major changes to the bargaining process, regardless of the implementation of the Clean Start Agreements in the various state and territory CBDs. There is a raft of issues that need to be considered. Cleaning contactors may be affected by the new processes, including good faith bargaining requirements and the low paid bargaining provisions of the Fair Work Act.

"Another potential risk for employers is the new transfer of business rules. Penalties may be imposed on businesses in relation to employee entitlements under certain circumstances, where contracts change hands and assets of the outgoing contractor are acquired or transferred to a new contractor.”

BSCAA’s Rodney Barnes says contractors should seek advice before any action is taken and recommends now is the time to enter into workplace agreements before the Cleaning Services Award is applied from 1st January, 2010.

“While the building service industry and all employers have to comply with the current changes, there are higher cost implications deriving from the Cleaning Services Award from 1st January 2010," he warns.

"Building service employers are invited to contact their state offices of the BSCAA and apply for membership so they can access the confidential, free and practical strategic advice from senior industrial relations consultants.”

Pictures show: (top) Rodney Barnes, BSCAA National President (right) Ruth Frenzel, Principal Consultant- Manager Victoria, EMA Consulting

T: Rodney Barnes (02) 6123-4816
E: bscaanat@bscaa.asn.au
W: www.bscaa.asn.au