2003/02

Normal Weekly Earnings in a Changed Remuneration Environment

Background

1. On 15 October 2001 Comcare issued Jurisdictional Policy Advice (JPA) No 2001/16 on this subject.  A copy of that advice is attached.
2. Comcare has recently received advice that the terms of JPA No 2001/16, as they relate to expiry of Australian Workplace Agreements (AWAs) or certified agreements, are not strictly consistent with the provisions of the Workplace Relations Act 1996.  This is because AWAs remain in force after they reach their nominal expiry date.  The following policy advice therefore replaces the relevant provisions of JPA No 2001/16

Policy approach

3. Variations in NWE for employees covered by AWAs or certified agreements which have reached their nominal expiry date should be managed under the following conditions.

Renegotiation of AWA

1.                  The option of negotiating a replacement AWA with the injured employee remains available.

Reversion to rate in certified agreement where AWA is terminated

2. Where an employee's AWA reaches its nominal expiry date and no new AWA is negotiated the provisions of the existing AWA, including salary rate, continue to apply.  Alternatively, the employer and employee may agree to terminate it or  the Australian Industrial Relations Commission (AIRC) may terminate it on application by either party if it is not contrary to the public interest to do so.  If the parties or the AIRC terminate the AWA , then the employer will need to determine whether the employee is covered by a certified agreement.
   1. Where there is a remuneration arrangement for an equivalent “class of employees” in the agency's certified agreement, the employee's NWE is based on the salary available under the provisions of that agreement (as advised to the determining authority by the agency).
   2. Where there is no equivalent “class of employees” no adjustment of NWE is available unless a new AWA is negotiated.

Provision for adjustment of remuneration after nominal expiry date or renegotiation

3. Where an employee's certified agreement passes its nominal expiry date, NWE is adjusted in accordance with any provisions in the agreement for continued adjustment of remuneration.

4. The policy approach to other issues dealt with in JPA 2001/16 remains unchanged.
5. Any issues relevant to this policy advice may be discussed with the Compensation and Injury Management Policy Group on 1300 366 979

SRC Act Policy and Support

Comcare

January 2003