Full Bench drafts determinations replacing Modern Award casual conversion clauses

Full Bench drafts determinations replacing Modern Award casual conversion clauses

As part of the Fair Work Commission (“FWC”) review of casual “relevant terms” of Modern Awards as a result of amendments made to the Fair Work Act 2009 (Cth) (“FW Act”) regarding casuals, the FWC Full Bench has drafted determinations replacing casual conversion clauses in a number of “stage two” Modern Awards to reference the National Employment Standards (“NES”) casual conversion entitlements. 

These “stage two” Modern Awards include the food manufacturing, building and electrical contracting Modern Awards.

One of the effects of the determinations is that existing casual conversion provisions in 12 Modern Awards that permit requests for permanent employment after six months, would (if the determinations come into effect) be replaced with the NES requirement for 12 months’ minimum service.

While employer groups have welcomed the approach taken by the Full Bench, there has been resistance from unions seeking to maintain entitlements to request conversion after six months.

Vice President Adam Hatcher, Deputy President Michael Easton and Commissioner Michelle Bissett have said that the draft determinations reflect their provisional view that it is necessary to satisfy the clause 48(3) Schedule 1 requirement to vary Modern Awards to make them “consistent or operate effectively” with the FW Act.

The Full Bench has invited comments by next Monday on the draft determinations.

We will keep you up to date with the implementation of the replacement casual conversion clauses, pending any comments and further matters taken into account by the FWC.

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