Australian Car Wash AssociationAustralian Car Wash Association

National ConferenceNational Conference-- Gold CoastGold Coast

Why is it Important to Understand your Why is it Important to Understand your

ObligationsObligations-- The Fair Work OmbudsmanThe Fair Work Ombudsman

� Federal government’s enforcement agency

� Substantial penalties and extensive audit programme

� Petrol station company and owner fined $241,00.00 for underpaying staff $41,000.00

� Sydney car wash prosecuted for underpaying 62 foreign students $95,680.00

� Industry audits in 2010 found that 43% of car wash business were not compliant

� Director and managers can be prosecuted

� Average prosecution penalty in last 12 months-$50,000.00

Who Do The Laws Apply ToWho Do The Laws Apply To

Western Australia-

� All trading and financial corporations- usually Ltd and Pty Ltd companies or Trusts with a corporate trustee are covered by federal law

� Sole traders, partnerships and trust with an individual as the trustee are covered by State law.

In other States & Territories-

� All employers are covered by federal law

What Industrial Instrument Covers What Industrial Instrument Covers

Your BusinessYour Business

Federal Law

� The Fair Work Act 2009

� Vehicle Manufacturing, Repair, Services and Retail

Award 2010 (including transitional arrangements)

State Law- Some Western Australian businesses

� Motor Vehicle (Service Station, Sales Establishments,

Rust Prevention and Paint Protection) Industry Award

(maybe)

� Minimum Conditions of Employment Act 1993

Vehicle Manufacturing, Repair, Vehicle Manufacturing, Repair,

Services and Retail Award 2010Services and Retail Award 2010

� The Award is legally binding upon car wash businesses

� Can not contract out of entitlements provided by the

award except through a registered enterprise

agreement

� Covers driveway attendants, console operators and car

cleaners and detailers

� Provides base rates of pay, weekend and evening

penalty rates and allowances

Vehicle Manufacturing, Repair, Vehicle Manufacturing, Repair,

Services and Retail Award 2010Services and Retail Award 2010

� There are transitional arrangements for certain

employment entitlements between the awards that

applied prior to 1 January 2010 and the current award.

� The actual rates of pay that must be paid are impacted

by

- The State in which the business is located

- The date of incorporation of the business

- Whether the business is a start up or was it

purchased from another business

Avoiding Unfair Dismissal ClaimsAvoiding Unfair Dismissal Claims

National System Employers

� Employers with less than 15 employees on a head count basis are exempt from unfair dismissal laws for a period of 12 months fromthe starting date for each employee

� Employers with 15 or more employees on a head count basis are exempt from unfair dismissal laws for a period of 6 months from the starting date for each employee

� After these exemption periods the general unfair dismissal protections apply

State System Employers (Some employers in Western Australia only)

� No exemption periods apply

Further InformationFurther InformationFurther InformationFurther InformationFurther InformationFurther InformationFurther InformationFurther Information

Australian Car Wash Association Industrial Relations

Hotline

08 9240 4230 or 0402 462 555

or

admin@essa.net.au

(Free to members of ACWA)***

*** subject to contractual limitations