The Fair Work Act 2009 and Its Influence on Australian HRM

This report provides an overview of the Fair Work Act 2009 and its influence on Human Resource Management in Australia. The report discusses the Act's role in establishing workplace regulations, including national employment standards, minimum wage orders, and modern awards. It highlights key provisions such as working hours, flexibility in working arrangements, and parental leave. The report also examines the Fair Work Commission's role in setting and reviewing minimum wages. Furthermore, it includes a case study of Farrell v Mater Dei Limited [2019] to illustrate the practical application of the Act's provisions. The conclusion emphasizes the Act's contribution to productive workplace relations and economic growth in Australia. The report is a valuable resource for understanding the legal framework governing employment practices in Australia.

Running Head: Human Resource Management
HUMAN RESOURCE MANAGEMENT

2
Human Resource Management
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................5
Reference list..............................................................................................................................6

3
Human Resource Management
Introduction
The Australian government has taken initiative to protect basic rights of both employees and
employers. Development and introduction of the Fair Work Act 2009 are helping in
developing good industrial relations. This study is focusing on developing a clear
understanding of the Fair Work Act 2009 and its impact on human resource management.
Discussion
Australia's workplace is governed by this act and it is considered as the primary piece of
legislation. This act is the foundation of all regulations and standards regarding employment.
These rules and regulations need to be maintained by all employers of all industries in
Australia. Main aim of this act is to provide a safe work environment and enforceable
minimum terms and conditions (Lawhandbook.sa.gov.au, 2018). These provisions and
guidelines are enforced through national employment standards, national minimum wage
orders, and modern awards. In subsection 55(5), minimum standards that are to be
provided to an employee is provided. Minimum standards include parameters like maximum
working hours in a week, flexibility in working arrangements and parental leave. 38 hours
each week and other additional hours are included in basic standards. Paternal unpaid leave
can be provided up to 12 months for each employee. Moreover, unpaid leave for community
service and leave policy on public holidays are also included in this part. According to
division 10 of NES, an employee is entitled to paid leave on public holidays
(Legislation.gov.au, 2019).
Base rate of every employee is set under national minimum wage and it varies every year by
thorough revision. Fair work commission (FWC) reviews this part every year and under
section 617, it is mentioned that FWC must be formed by an expert panel. According to

4
Human Resource Management
section 287 of fair work act 2009, minimum wage orders become valid from 1st July of every
financial year. Minimum wage or awards need to be same for all employees, which
eliminates the risk of discrimination. Generally, an employee's wage is determined by
industrial instrument under which they are working (Macdonald & Charlesworth, 2013). It
may be a modern award or national minimum wage but these employees cannot be paid
under the base pay that is determined by fair work commission. According to subsection 3,
minimum wage for every class of employee is set by FWC unless there are some exceptional
circumstances. Determinations of national wage order come in a particular specified day.
Section 297 (2) states that specified day should not come earlier than the day of
determination.
An additional set of guidance have been mentioned as modern award in the Fair Work Act
2009 and this is covering most of the employees of Australia. As opined by Capuano (2016),
modern award section of this act is concerned about entitlements and terms related to facts
such as, working hours, flexible workplace, allowance, classifications, rest breaks, minimum
wages, employment types, rate of penalty, settlement of disputes, leave policy, consultation,
representation, superannuation and other employment factors. Section 47 of the Fair Work
Act 2009 is covering applies related to modern award. Covering terms related to the modern
award are mentioned in section 143 and section 48 of this act is mentioning coverages of
modern award. Pekarek et al. (2017) have mentioned that subsection 144(1) is all about
flexibility terms of modern award.
The case study of Farrell v Mater Dei Limited [2019] is based on the terms of modern award
of Fair Work Act 2009. Ms. Farrell was appointed as social educator of a government-aided
program by Mater Dei School in 2016. Ms. Farrell later has claimed that this institute has
breached Section 50 of Fair Work Act 2009 and has not paid her as she deserved. She has
mentioned that she has worked for the school by Mater Dei and she is entitled to have range

5
Human Resource Management
of payments as per three Enterprise Agreement signed by Mater Dei. after evaluation of all
facts related to this case, the judge has dismissed the claim of Ms. Farrell. It has been
mentioned that social educators, who have been assigned in the government aided program
are not covered by the enterprise agreement. Therefore, Ms. Farrell is not entitled to any
payments required by the agreements.
Conclusion
From the entire discussion of this study, it can be concluded that the Fair Work Act 2009 is
helping organizations of Australian Industry to maintain a productive as well as cooperative
workplace relations. Consideration of standards and regulations mentioned by this Act may
help to ensure economic growth of Australia.

6
Human Resource Management
Reference list
Capuano, A. (2016). Giving Meaning to Social Origin in International Labour Organization
(ILO) Conventions, the Fair Work Act 2009 (CTH) and the Australian Human Rights
Commission Act 1986 (CTH): Class Discrimination and Its Relevance to the
Australian Context. UNSWLJ, 39, 84. Retrieved
from:http://www.labourlawresearch.net/sites/default/files/papers/391-3.pdf
Lawhandbook.sa.gov.au (2018), Fair work act 2009, retrieved on 7th May 2009
fromhttps://lawhandbook.sa.gov.au/ch18s03s01.php
Legislation.gov.au, (2019), Fair work act 2009, retrieved on 7th May 2009
fromhttps://www.legislation.gov.au/Details/C2018C00512
Macdonald, F., & Charlesworth, S. (2013). Equal pay under the Fair Work Act 2009 (Cth):
mainstreamed or marginalised. UNSWLJ, 36, 563. Retrieved
from:https://www.researchgate.net/profile/Sara_Charlesworth/publication/
266081233_Macdonald_F_and_Charlesworth_S_2013_
%27Equal_Pay_under_the_Fair_Work_Act_2009_Mainstreamed_or_Marginalised
%27_UNSW_Law_Journal_362_563-586/links/5513a4120cf2eda0df3027a7.pdf
Pekarek, A., Landau, I., Gahan, P., Forsyth, A., & Howe, J. (2017). Old game, new rules?
The dynamics of enterprise bargaining under the Fair Work Act. Journal of Industrial
Relations, 59(1), 44-64. Retrieved
from:https://journals.sagepub.com/doi/pdf/10.1177/0022185616662311
Case law
Farrell v Mater Dei Limited [2019] FCA 473