Below you can find The Facts about WorkChoices as it was introduced in 2006, before John Howard made the cosmetic changes outlined in the Factsheet about the so-called Fairness Test.

Australian Workplace Agreements (AWAs) are individual agreements made between an employer and their employee.  These written agreements are binding once signed by both parties, witnessed and lodged with the Office of Employment Advocate. 

The Howard Government's IR laws allow employers to put workers onto AWAs that cut take-home pay and reduce minimum standards.

AWA are individual contracts that can undermine workers' rights. The Howard Government's laws allow employers to:

• Single out employees, introducing poorer working conditions on to them one at a time.

• Have more control over your working hours and make more people casual.

• Get rid of work rights like weekend, shift and public holiday rates; overtime; redundancy pay and allowances.

Statistics prove that workers are worse off under AWAs

• The average weekly earnings of workers on AWAs have dropped by 11% from May 2002 to May 2004. Women employed on AWAs earn 11% less per hour than women employed on collective agreements.
  
• In Western Australia, the Liberal State Government passsed similar legislation to WorkChoices.
  
• 75.5% of WA individual contracts contained no pay increase.
  
• 67% of WA individual contracts did not have overtime rates.
  
• 74% of WA individual contracts contained weekend penalties.
  
• 78% of WA individual contracts had hours of work Monday to Sunday, meaning a seven day working week, and only 3% of WA individual contracts contained annual leave loading.

Your AWA is NOT equal to, or better than, the award

• The Howard Government has abolished the 'no-disadvantage' test.  The 'no-disadvantage' test was a requirement that all AWAs had to be approved by a government agency (the Office of the Employment Advocate) to check that your agreement was equal to, or better than, the relevant Award.
• AWAs can now substantially cut your take home pay and conditions
  

Your award conditions are NOT protected by law

• Prior to the passage of the IR changes, the Howard Government claimed that employees would be entitled to award conditions for public holidays, rest breaks, incentive-based pay, annual leave loading, allowances, penalty rates and overtime loading when making an individual agreement.
  
• But in reality, workers will only keep these conditions if their employer has not modified or removed them from their agreement.
  
• Under the old laws, you could not lose wages unless you gained something in return. Now, all the employer needs to do is tell you in the agreement that these no longer apply.

Five conditions will be the new standard for all wage agreements between employers and employees

• A minimum wage based on job classification starting at $484 a week.
• Four weeks' paid annual leave, of which two weeks can be cashed out at the request of an employee.
• Paid personal/carer's leave, including sick leave, of 10 days a year, plus a further two days of unpaid carer's leave if you have exhausted al your paid leave.
• Parental leave of up to 52 weeks unpaid after the birth or adoption of a child for the primary caregiver.
• A standard working week of 38 hours, averaged over a year, but not tightly enforced. 

Award conditions negotiable

• Agreements no longer required to take account of, and include or otherwise compensate employees for award conditions such as overtime, penalty rates, shift penalties, allowances, bonuses, public holidays, annual leave loadings or meal breaks.
• These conditions are negotiable, and it is legal to give employees an agreement that doesn’t include these provisions.
  

AWAs can be forced on you at any time

• Under the Howard Government’s IR laws, employers can offer you an AWA at any time. Once an AWA is signed it overrides all previous agreements and Awards. Unless a different timeframe is specified, AWAs last for five years.
• Employers will be able to offer employees a job or promotion on the condition that they accept and sign an AWA.
• Your leave is up for grabs
• AWAs can be legally enforceable without any penalty rates and overtime. Often they will allow you to “cash in” up to 2 weeks of your leave.
  

AWAs and Your Rights

• With the removal of the 'no-disadvatage' test, your agreement no longer needs to be reviewed to ensure your rights are maintained. 
  
• Under the new laws, the agreement is valid when lodged by their employer. The Office of the Employment Advocate (where these new agreements will be lodged) will not even check the agreement to make sure it meets the five minimum standards.
  
• This means all the power rests with your employer, and the onus is on them to do the right thing.
• Your employer must give you access to the agreement at least 7 days before the proposed approval date. You can appoint a person to act as bargaining agent on your behalf. Generally, parties negotiating an AWA are not allowed to refuse to recognise the others’ bargaining agent.

If you are offered an AWA you are strongly advised to contact your union for advice and to help protect your rights at work.

Download a detailed 12 page booklet containing information about the new laws (PDF).

Case studies: How the Government's new individual contracts can cut take-home pay

Case study 1: Shop assistant Michelle could lose more than $3,000 a year

Michelle works 38 hours a week including 3 hours on a Thursday evening, and 8 hours on Saturday. Her base rate of pay is $13.85 an hour or $525.40 an week.

Wayne works 38 hours a week plus 7 hours over-time. His base rate of pay is $14.76 or $561.20.

Case Study 3: Insurance supervisor Cath could lose more than $5,490 a year

Cath heads up a team of nine people in a specialised insurance firm. She is currently covered by the Insurance Industry Award. Cath works a 38 hour week plus 3 hours overtime each week. At peaks times during the year, around the end of every quarter and in the lead-up to the end of the financial year, Cath also often works an extra day of overtime on Saturday. She usually works for 6 hours on these occasions which would occur about 6 times a year.

Free confidential assistance can be obtained from the ACTU’s Union Helpline, for both union members and non-members: 1300 362 223.