During the Fair Work Commission’s (FWC) 4 Yearly Review of Modern Awards, there has been a hard-fought contest between Ai Group and the unions concerning whether or not the standard award clause which gives an employer the right to deduct money from wages due on termination for notice not given by an employee, can remain in awards. Following several rounds of submissions over the past 12 months and a hearing, a Full Bench of the FWC has decided upon a new model clause.

The model clause:

• Requires an employee to give notice of between 1 week and 4 weeks, depending upon the employee’s length of service;
• Clarifies that the clause does not apply to the employees identified in s.123(1)

and 123(3) of the Fair Work Act (e.g. casuals, fixed term employees);

• Enables an employer to deduct from wages due to an employee (who is at least

18 years of age), an amount that is no more than one week’s wages; and

• Specifies that any deduction from wages must not be unreasonable in the circumstances.

At this stage, no awards have been varied to include the model clause.

If you would like more information about termination of employment, please contact Ai Group’s Workplace Advice Service on 1300 55 66 77.

Alternatively, if you would like advice regarding deduction of wages from employees, please contact your local employment, workplace and industrial lawyer in Sydney, Newcastle, Wollongong, Adelaide, Melbourne or Brisbane or email Ai Group Workplace Lawyers at info@aigroupworkplacelawyers.com.au.