Important Update – Local Government Industry Award 2010
ER
Thursday, July 26, 2018
Important Update – Local Government Industry Award 2010

The Fair Work Commission ( FWC) has handed down a decision in relation to a model term for ‘payment on termination of employment’ as part of the four year review of the modern awards.

Currently, the Local Government Industry Award 2010 ( LGIA 2010) does not make a provision about the period within which termination payments are to be made. 

The FWC has come to a “provisional view” that moderns awards which are currently silent in respect of the time period within which termination payments are to be made, will be varied to include the model term. It is expected this will come into effect following further submissions in August 2018.

The FWC in its deliberations recognised that the majority of modern awards do not contain terms which provide for payment of wages on termination. Further those that do contain a term were found to be inconsistent.

To clarify this situation, the FWC has finalised a ‘payment on termination of employment’ model term. The model term provides the following:
  • the employer must pay termination pay no later than seven days after the day on which the employee’s employment terminates;
  • the termination pay is for the employee’s wages under the award and for any complete or incomplete pay period up to termination; and
  • the termination pay includes amounts due under the award and the National Employment Standards (NES).
A copy of the proposed model term and decision can be found  here.

The ‘payment on termination of employment’ model term will impact Local Governments that apply the LGIA 2010 or those with the LGIA 2010 incorporated into an enterprise agreement.

For those Local Governments with standalone enterprise agreements, the payment on termination of employment provision may become relevant during enterprise bargaining.


For more information please email WALGA Employee Relations or call 1300 366 956.