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Side deals don’t cut it with the National Code


National , Alert 

Release date: 3 May 2010 

A warning on signing recent Queensland Union MOUs.

Employers have no obligation to sign an MOU or any other type of side deed. Those who choose to sign a side deed should be aware that this will make them non-compliant with the National Code and Guidelines. This means they will not be allowed to work on a broad range of Australian government funded construction projects.

The ABCC has become aware that a Queensland union is requesting employers sign a ‘Memorandum of Understanding’ (MOU) on the rates and allowances they pay their employees.

The MOU is similar to a collective agreement as it details wages and conditions with which employers signing it are expected to comply. However, as the MOU is not certified, registered, lodged or otherwise approved under an industrial law it is classified as an unregistered written agreement.

Under section 6.1.3 of the 2009 National Code Implementation Guidelines, the use of unregistered written agreements (other than common law agreements made between the employer and an individual employee) is inconsistent with the National Code. Employers that sign such unregistered written agreements will be deemed non-compliant with the National Code and Guidelines.

Being coerced to sign an unregistered written agreement may be unlawful under the Building and Construction Industry Improvement Act 2005 and the Fair Work Act 2009. If you feel you are being forced to sign any workplace arrangement call the ABCC for advice and assistance.

For more information on your rights and obligations in relation to unregistered written agreements call the ABCC Hotline on 1800 003 338.

For enquiries about the National Code and Guidelines assessment process please contact the National Code Assessment Hotline on 1300 731 293 or email: building@deewr,gov.au

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Disclaimer

This newsletter was correct as at 3 May 2010.