Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

I move government amendment (1) on sheet PA412:

(1)    Schedule 1, item 1, page 3 (after line 19), after subparagraph 326(2)(b)(i), insert:

                 (ia)    did not commence that employment more than 14 days before the day on which the ITEA was made, and had previously been employed by the employer (not being employment that had ceased for the reason that, or for reasons that included the reason that, the employer would re-employ the person under an ITEA); or

This amendment will amend section 326 to enable an employer to make an ITEA with a former employee, provided that the employee’s previous employment with that employer was not terminated in order to re-engage the employee on an ITEA. Proposed section 326 currently prevents an employer making an ITEA with a former employee. I am advised that the bill was originally drafted in this way because the government was concerned that employers would arrange for the employment of employees to be terminated in order for them to sign up to ITEAs.

In short, this amendment responds to concerns raised during the Senate inquiry about the difficulties that the current drafting could cause for workplaces and industries with high turnover and with a limited pool of employees on which to draw as they prepared for the transition to the government’s new workplace relations system. This is a particular feature of the building, construction and mining industries in Western Australia. The amendment is based on a suggestion put forward by the Australian Industry Group in its submission to the Senate inquiry into the bill. The government considers that the amendment gives employers and industries with high turnover and a limited pool of employees the flexibility that they need during the transition period whilst ensuring ITEAs are confined to limited use.