As an employer or an employee, Australian Workplace Agreements (AWAs) are something that you may come across in the workplace. An AWA is a legal agreement between an employer and an employee that outlines the terms and conditions of employment. As an employee, an AWA can be beneficial, as it offers you specific or customized terms of employment that are different from those under a Modern Award or an Enterprise Agreement. However, as an employer, it can be a hassle when it comes to terminating an AWA.
If you are an employer and are thinking about terminating an AWA, you need to know that there are specific procedures that you need to follow. Australian workplace laws require the employer to give certain notice periods and meet specific requirements before terminating an AWA. There are two types of termination of AWAs – termination by agreement or termination under the Fair Work Act.
Termination by Agreement:
Termination by agreement can happen if both the employer and the employee agree to terminate the AWA. In such a case, the employer and the employee must sign a written agreement to terminate the agreement and submit it to the Fair Work Commission. The agreement must include the following information:
1. The date of termination of the AWA
2. The terms and conditions for the termination, including any compensation payments or other negotiated terms
3. The reasons for the termination of the AWA
Once the written agreement to terminate the AWA is signed and submitted to the Fair Work Commission, the AWA is considered to be terminated.
Termination under the Fair Work Act:
If the employer or employee is not in agreement with the termination of the AWA, the employer can terminate the agreement under the Fair Work Act. To do so, the employer must give notice to the employee in writing before the termination. The written notice must include the following:
1. The date of the termination of the AWA
2. The reason for the termination of the AWA
3. The notice period that will be provided to the employee before the AWA is terminated
The notice period required will depend on how long the employee has been employed under the AWA. Generally, employees employed under an AWA for fewer than one year need to be given four weeks’ notice. Employees employed under an AWA for more than one year but less than three years need to be given six weeks’ notice. Employees employed under an AWA for more than three years need to be given eight weeks’ notice.
Once the notice period has been given, the AWA will be terminated at the end of the notice period. The employer must provide the employee with any entitlements owed under the AWA, such as any outstanding annual leave or other leave entitlements, before the AWA is terminated.
In conclusion, terminating an AWA in Australia can be a complicated process, and it is essential to ensure that all the necessary procedures are followed. If you are an employer looking to terminate an AWA, it is recommended to seek professional advice from an HR consultant or legal expert to make sure that the termination process is conducted according to Australian workplace laws. It is also essential to communicate effectively with the employees and provide them with any necessary information throughout the process. By doing so, you will ensure that the termination of the AWA is smooth and satisfactory for all parties involved.