Commonwealth of Australia Explanatory Memoranda

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FAIR ENTITLEMENTS GUARANTEE BILL 2012

                               2010-2011-2012




     THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                      HOUSE OF REPRESENTATIVES




             FAIR ENTITLEMENTS GUARANTEE BILL 2012




           SUPPLEMENTARY EXPLANATORY MEMORANDUM



            Amendments to be Moved on Behalf of the Government




(Circulated by authority of the Minister for Employment and Workplace Relations,
                  the Honourable William Richard Shorten, MP)
  AMENDMENTS TO THE FAIR ENTITLEMENTS GUARANTEE BILL 2012


OUTLINE

The Government will move amendments to the Fair Entitlements Guarantee Bill 2012. These
amendments will modify the wording of two provisions to ensure that the Bill gives effect to the
current approach taken under the General Employee Entitlements and Redundancy Scheme
Operational Arrangements.

FINANCIAL IMPACT STATEMENT

The measures proposed in this Bill are budget neutral.

NOTES ON AMENDMENTS

Amendment 1 - Clause 12, page 13 (lines 14 to 16)

1.     This item would remove the words "employ the person on the terms and conditions of that
       employment beyond the time that employment actually ended" from clause 12(1)(c) and
       replace them with "meet the employer's obligations under the terms and conditions of that
       employment for the actual duration and end of that employment".

2.     This amendment will clarify that, as intended, the Secretary may apply the rule in clause
       12 if he or she is satisfied that it was reasonable to expect that the employer could not meet
       its obligations at the end of employment (for example, obligations to pay redundancy
       entitlements), as well as during the employment.

3.     The amendment is a technical amendment, and does not engage any human rights.

Amendment 2 - Clause 25, page 21 (lines 3 to 5)

4.     This item would remove the words "continue to employ the person on the terms and
       conditions of that employment beyond the time of the actual end of the person's
       employment" from clause 25(1)(b) and replace them with "meet the employer's
       obligations under the terms and conditions of that employment for the actual duration and
       end of that employment".

5.     This amendment will clarify that, as intended, the Secretary may apply the rule in clause
       25 if he or she is satisfied that it was not reasonable to expect that the employer could meet
       its obligations at the end of employment (for example, obligations to pay redundancy
       entitlements), as well as during the employment.

6.     The amendment is a technical amendment, and does not engage any human rights.



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House of Representatives       Page 1                                    Fair Entitlements Guarantee Bill 2012