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

I move government amendment (6) on sheet PA412:

(6)    Schedule 1, item 2, page 6 (after line 27), at the end of section 346D, add:

        (8)    To avoid doubt, if there is a reference instrument in relation to one or more, but not all, of the employees whose employment is subject to a collective agreement:

             (a)    in a case where the agreement passes the no disadvantage test under subsection (2)—it passes the test in relation to all employees whose employment is subject to the agreement; or

             (b)    in a case where the agreement does not pass the no disadvantage test under subsection (2)—it does not pass the test in relation to any employees whose employment is subject to the agreement.

This amendment clarifies the operation of the no disadvantage test where there is a reference instrument in relation to some but not all employees. Currently under that test a collective agreement must be tested if there is a reference instrument in relation to one or more employees and, where there is no reference instrument in relation to any employees, a collective agreement is taken to pass the test. This amendment clarifies that, where there is a reference instrument for one or more employees but not every employee, two things apply. First, a collective agreement that passes the no disadvantage test will pass in relation to all employees, including those for whom there is no reference instrument. Second, a collective agreement that does not pass the no disadvantage test will not pass in relation to any employee, including those for whom there is no reference instrument.

Question agreed to.