[2016] FWC 2837
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Fair Work Act 2009
s.156 - 4 yearly review of modern awards
4 yearly review of modern awards
(AM2014/1)
JUSTICE ROSS, PRESIDENT MELBOURNE, 6 MAY 2016
Plain language modern awards – outcome of plain language modern awards pilot and
further plain language activities.
Background
[1] A Statement issued on 22 September 2015 indicated that the Commission would
conduct a pilot to produce a plain language draft of the Pharmacy Industry Award as part of
AM2014/209.
[2] A report on the Pilot has now been published on the AM2014/209 page of the
Commission’s website.1 The report provides background information on the scope and
conduct of the Pilot and the findings from the Pilot. The plain language draft of the Pharmacy
Industry Award is attached to the report.
[3] A conference was held on 27 April 2016 with parties to AM2014/209 and directions
were issued for parties to make submissions on the plain language draft and to identify any
substantive issues relating to the Pharmacy Industry Award that remain to be resolved.
[4] In addition to plain language redrafting of award-specific provisions of the Pharmacy
Industry Award, the Pilot also involved plain language redrafting of provisions that are
common to most modern awards, including:
Award flexibility
Consultation
Dispute resolution; and
Schedules dealing with the National Training Wage and Supported Wage
System.
[5] A statement will be issued shortly providing further information on these redrafted
provisions and providing an opportunity for all interested parties to comment.
STATEMENT
E AUSTRALIA FairWork Commission
https://www.fwc.gov.au/sites/awardsmodernfouryr/am2014209-dirs-270416.pdf
https://www.fwc.gov.au/sites/awardsmodernfouryr/AM2014209-report-plainlanguage-FWC-210416.pdf
https://www.fwc.gov.au/decisionssigned/html/2015FWC6555.htm
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[6] Standard or common provisions not included in the Pharmacy Industry Award, such
as the School-based apprentices schedule, will be redrafted in plain language and will be the
subject of consultation with all interested parties.
Preparation of further plain language drafts
[7] Plain language drafting, supported by appropriate consultation processes, can make
modern awards simpler and easier to understand, consistent with s.134(1)(g) of the Fair Work
Act 2009 (Cth).
[8] The Commission now proposes to prepare plain language drafts of award-specific
clauses in a number of other modern awards.
[9] The following Group 3 and Group 4 modern awards have been selected for the first
tranche of plain language re-drafting activities:
Group 3 Clerks – Private Sector Award 2010 [AM2014/219]
Group 4 General Retail Industry Award 2010 [AM2014/270]
Hospitality Industry (General) Award 2010 [AM2014/272]
Restaurant Industry Award 2010 [AM2014/284]
[10] These modern awards have been selected for plain language redrafting based on an
assessment of the level of award reliance among employers and employees in the industries
covered by the instruments. Retail trade and Accommodation and food services are the two
industries with the most employees who receive award rates, between them accounting for a
third of all award-reliant employees. A large number of award reliant employees are also
found in the Administrative and support services industry. Modern awards in the Health care
and social assistance industry may also be considered for plain language re-drafting, given
the high levels of award use and reliance observed in this industry.2
[11] In selecting the modern awards to be redrafted in plain language particular weight has
been given to award reliance among small businesses (those with fewer than 20 employees),
on the basis that these organisations are less likely to have a dedicated internal human
resources function to assist with the interpretation of awards. Tables 1 and 2 set out data from
the Fair Work Commission’s Award Reliance Survey 2013, on award reliance in small non-
public sector organisations.
Table 1: Modern awards used by small organisations (top 4)
Modern award Percentage of award-reliant
organisations using award (%)
General Retail Industry Award 2010 16.0
Clerks – Private Sector Award 2010 14.9
Hospitality Industry (General) Award 2010 12.0
Building and Construction General On-Site
Award 2010
8.2
Source: Fair Work Commission, Award Reliance Survey 2013
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Table 2: Modern awards used in small organisations by percentage of award-reliant
employees (top 4)
Modern award Percentage of award-reliant
employees covered by award (%)
Hospitality Industry (General) Award 2010 17.9
General Retail Industry Award 2010 15.8
Restaurant Industry Award 2010 6.8
Clerks – Private Sector Award 2010 5.8
Source: Fair Work Commission, Award Reliance Survey 2013
[12] The above information suggests that the four modern awards selected will have the
potential to be of most benefit to employers and employees who are directly affected by a
modern award.
[13] The number of modern awards to be selected for plain language redrafting will be
dependent on the resources available to the Commission. Consideration will be given to
preparing plain language drafts for further modern awards later in 2016 and early 2017. In
particular, as a matter of efficiency, other modern awards that are similar to awards that have
been redrafted in plain language may also be subject to plain language redrafting.
Next steps
[14] Interested persons are invited to comment on the four modern awards selected for
redrafting in plain language (see paragraph [9] above). Submissions that propose additional
modern awards to those selected should be accompanied by reasons and any supporting data
or factual material. Written comments should be sent to amod@fwc.gov.au by Friday 20
May 2016.
PRESIDENT
Printed by authority of the Commonwealth Government Printer
Price code A, PR580061
1 The report from the Pilot is available at: https://www.fwc.gov.au/sites/awardsmodernfouryr/AM2014209-report-
plainlanguage-FWC-210416.pdf
2 ABS, Employee Earnings and Hours, Australia, May 2014, Cat. No. 6306.0
https://www.fwc.gov.au/sites/awardsmodernfouryr/AM2014209-report-plainlanguage-FWC-210416.pdf
https://www.fwc.gov.au/sites/awardsmodernfouryr/AM2014209-report-plainlanguage-FWC-210416.pdf
mailto:amod@fwc.gov.au
