Fair Work Commission

annual performance statements

Statements prepared by the accountable authority of a Commonwealth entity in accordance with s.39 of the PGPA Act and s.16F of the PGPA Rule that acquits actual performance against planned performance described in the entity's corporate plan. The statements may be audited by the Auditor-General, and must be provided to the entity's minister and the Finance Minister.

annual wage review

A review of award minimum wages and the national minimum wage order conducted by the Expert Panel of the Commission each financial year.

applicant

The initiating party to a proceeding before the Commission.

arbitration

A process in which the Commission determines a grievance or dispute by imposing a binding settlement. The Commission has powers of compulsory arbitration as well as offering arbitration by consent.

bargaining representative

An employer or a person appointed by the employer to be their representative; a union with respect to its members who will be covered by the agreement (unless the member appoints another person or revokes the status of the union); or any other person the employee appoints in writing to participate in negotiations on their behalf.

better off overall test (BOOT)

The test that the Commission must apply to a proposed agreement before it can be approved to ensure that employees will be better off overall than under the applicable award. Individual flexibility arrangements under modern awards and enterprise agreements must also satisfy the test.

collective agreement

A legally enforceable agreement made under previous legislation about terms and conditions of employment between an employer and a group of employees, or between an employer and one or more unions. Collective agreements were approved by the Workplace Authority.

conciliation

One of the informal processes used by the Commission to facilitate the resolution of a grievance or a dispute between parties by helping them to reach an agreement. Mediation is another informal technique used.

corporate governance

The process by which agencies are directed and controlled. Corporate governance is generally understood to encompass authority, accountability, stewardship, leadership, direction and control.

corporate plan

The primary strategic planning document of a Commonwealth entity or company, setting out the objectives, capabilities and intended results over a four-year period, in accordance with its stated purposes. The plan should provide a clear line of sight with the relevant annual performance statement, portfolio budget statement and annual report.

dispute resolution

The process conducted by the Commission, arising from the dispute resolution procedure in awards, agreements or the Fair Work Act, for resolving disputes.

dispute resolution procedure

The procedure specified in a modern award or enterprise agreement for the resolution of disputes arising under the award or agreement and in relation to the National Employment Standards. If no procedure is specified a model dispute resolution procedure specified in the Fair Work Act is deemed to apply.

enterprise agreement

A legally enforceable agreement that covers the employment conditions of a group of employees and their employer. Enterprise agreements can be single or multi-enterprise agreements and must meet a number of requirements of the Fair Work Act before they can be approved by the Commission.

Fair Work Act 2009

The principal Commonwealth law governing Australia's workplace relations system.

Fair Work (Registered Organisations) Act 2009

The legislation that covers the registration and accountability of federally registered unions and employer associations.

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

The legislation that governs transitional matters in connection with the Fair Work Act and other related matters.

Federal Court of Australia

The court with jurisdiction over matters arising under the Fair Work Act.

Federal Circuit Court of Australia

The Federal Circuit Court was established to deal with matters which were originally commenced at Fair Work Commission. Appeals from a judgment of the Federal Circuit Court are then made to the Federal Court which sits as an appeal court. The Federal Circuit Court operates as informally as possible in the exercise of judicial powers, and uses streamlined procedures and dispute resolution processes to resolve matters without judicial decisions.

Full Bench

A Full Bench of the Commission is convened by the President of the Commission and comprises at least three Commission Members, one of whom must be either the President, a Vice President or a Deputy President. Full Benches are convened to hear appeals, matters of significant national interest and various other matters specifically provided for in the Fair Work Act.

Future Directions

The Fair Work Commission's change program.

general protections

General workplace protections specified in the Fair Work Act including freedom of association, protection from discrimination and sham contracting, and the ability to exercise, or to not exercise, workplace rights. The general protections provisions provide a right to apply to the Commission if an employee or employer is the subject of adverse action, such as termination of employment, refusal to employ a worker, or different (and unfair) conditions to other employees.

individual flexibility arrangement

An agreement between an employer and an individual employee that modifies the application of a modern award or enterprise agreement. The individual flexibility arrangement must satisfy the better off overall test. There is no requirement to register an individual flexibility arrangement.

key performance indicator

A type of performance measurement (using either qualitative or quantitative data) on the efficiency or effectiveness of activities in achieving purposes. Related terms: evaluation and monitoring.

mediation

One of the informal processes used by the Commission to facilitate the resolution of a grievance or a dispute between parties by helping them to reach an agreement. Conciliation is another informal technique used.

modern award

An award created by the Commission. Modern awards came into effect on 1 January 2010 and include terms that complement the National Employment Standards (NES). The Commission must ensure that, together with the NES, modern awards provide a fair and relevant minimum safety net. Modern awards are expressed to cover entire industries and/or occupations.

National Employment Standards

A set of 10 minimum employment standards that apply to all employees within the federal system from 1 January 2010. The National Employment Standards include maximum weekly hours, requests for flexible working arrangements, parental leave and related entitlements, annual leave, personal/carer's leave and compassionate leave, community service leave, long service leave, public holidays, notice of termination and redundancy pay.

national minimum wage order

The Commission must make a national minimum wage order each year in the annual review undertaken by the Expert Panel. It includes a minimum wage for all national system employees, a casual loading for award and agreement-free employees, and special minimum wages for junior employees, trainees and employees with a disability.

national system employee

An employee covered by the national workplace relations system because they are employed by a constitutional corporation, the Commonwealth or a state reference employer, in certain designated industries or in a territory.

national system employer

An employer covered by the national workplace relations system because they are a constitutional corporation, the Commonwealth or a state reference employer, in certain designated industries or in a territory.

New Approaches

The Fair Work Commission's pilot program to assist it to meet its statutory obligation to 'promote productive and cooperative workplace relations and prevent disputes'.

outcomes

The results, impacts or consequences of a purpose or activity, as defined in the annual Appropriation Acts and the portfolio budget statements, by a Commonwealth entity and company.

party

An applicant or a respondent to a proceeding before the Commission.

permission to appeal

The Fair Work Commission's pilot program to develop a standard practice for unfair dismissal and certain other appeals, after a positive internal review.

portfolio

Refers to an area of responsibility assigned to a Minister under the Administrative Arrangements Order (AAO). A portfolio may encompass more than one Department of State. For example, the Defence Portfolio consists of the Department of Defence and the Department of Veterans' Affairs.

Portfolio Budget Statements

The PB Statements inform parliamentarians and the public of the proposed allocation of resources to government outcomes. They also assist the Senate standing committees with their examination of the government's Budget. PB Statements are tabled in Parliament on Budget night and published as budget-related papers.

programmes

Commonwealth programmes deliver benefits, services or transfer payments to individuals, organisations or the community as a whole, and/or policy advice to inform government decisions. A programme is comprised of activities or groups of activities, as defined in the annual Appropriation Acts and portfolio budget statements, by Commonwealth entity and company. Related term: outcomes.

protected action ballot

A secret ballot allowing employees directly concerned to vote on whether or not they authorise industrial action to advance the claims for their proposed enterprise agreement.

purposes

The objectives, functions or role of the entity or company. In relation to performance management, purposes are the reasons or ideal state or outcomes, for which the entity or company undertakes its activities.

registration

The process by which unions and employer associations formally register as industrial organisations. Registration under the Registered Organisations Act confers certain rights and obligations, including the right to appear before the Commission and the obligation to report to the Commission on certain financial and other matters.

respondent

A party to a matter who is responding to an application initiated by someone else.

right of entry

The legal right of union officials to enter business premises under certain conditions for purposes described in the Fair Work Act.

right of entry permit

A permit issued by the Commission to officials of a union who are found to be 'fit and proper persons' to hold an entry permit. A permit holder is able to utilise specific rights under the Fair Work Act.

rules

Legislative instruments made by the Finance Minister under sections 101 to 105 of the PGPA Act prescribing matters:

• required or permitted by the PGPA Act or
• necessary or convenient to be prescribed for carrying out or giving effect to the PGPA Act.
• Rules made under the PGPA Act are disallowable legislative instruments.

Senate Estimates

The review of estimates of government expenditure by Senate committees as part of the annual budget cycle.

Small Business Fair Dismissal Code

The Small Business Fair Dismissal Code came into operation on 1 July 2009. The code applies to small business employers with fewer than 15 employees and provides protection against unfair dismissal claims where an employer follows the code.

unfair dismissal

Unfair dismissal occurs when the employee who is protected by unfair dismissal provisions has been dismissed, the dismissal is harsh, unjust or unreasonable, it is not a genuine redundancy, and the dismissal is not consistent with the Small Business Fair Dismissal Code (if it applies).