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National Code of Practice for the Building and Construction Industry

The National Code is a set of principles which governs the manner in which both the Australian Government deal with the building and construction industry. The Code applies to all construction activity undertaken by or on behalf of Government departments and agencies, and aims to emphasise the maintenance of the highest ethical standards in all construction activity. The Code is now compulsory to qualify for tenders for Commonwealth work.

More information is available on our National Code page.

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Over-Award payments

Over-award payments are defined to mean any payment and/or benefit above that set out in the relevant award, registered agreement and/or legislation. No employer may be compelled to contribute to any particular redundancy or superannuation fund, or similar body unless there is an award or legal requirement to do so.

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Part XV and Schedule 1A (Workplace Relations Act 1996)

The parts of the Workplace Relations Act 1996 that set out the terms and conditions of Victorian employees who are not covered by a federal award.

For more information you can read an extract of Schedule 1A.

Please note that these provisions have been replaced by common rule awards effective January 1st 2005 at the earliest. For more information, contact Wagenet on 1300 363 264.

Partnership

A group of people in business together.

Pay slip

A written record of pay details given to an employee by their employer each time the employee receives payment for work. The WageNet website contains a best practice guide for pay slips, and also a pay slip template.

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Respondent

A legal term used to describe an employer who is subject to a federal award. This occurs if the employer is named in the award or is a full member of an employer organisation that is bound to the award.

Respondency to a federal award

All federal awards have a clause which identifies who is bound by the award.

A federal award will apply when:

  • an employer (the owner of the business) is named in the respondency clause of the award; or
  • an employer is a member of a federally registered employer organisation (for example, the Master Builders' Association) which is named in the respondency clause of an award.

Right of entry

The Workplace Relations Act 1996Building and Construction Industry Improvement Act 2005 and the various state acts contain provisions regulating the right that certain individuals have to enter worksites. The exact provisions vary from state to state. For further information refer to the following Right of Entry Fact Sheets produced by the ABCC:

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Secondary boycott

A type of boycott whereby parties take action aimed at disrupting the flow of goods and services between an employer and another party. It affects those who do business with the target of a primary boycott. A secondary boycott may be illegal under the Trade Practices Act 1974, and may also result in industrial action not being treated as protected industrial action under the Workplace Relations Act 1996 and Building and Construction Industry Improvement Act 2005.

Sham Arrangement

The Workplace Relations Legislation Amendment (Independent Contractors) Act 2006 amends the Workplace Relations Act 1996 to prohibit sham contracting arrangements, where an employer misrepresents an employment relationships as an independent contractor relationships.

An employer must not:
• misrepresent an employment relationship as an independent contracting arrangement;
• dismiss, or threaten to dismiss, an individual so as to re-hire them as an independent contractor to perform substantially the same work; or
• knowingly make a false statement to a current or former employee to persuade them to become an independent contractor to perform substantially the same work.

Such conduct could attract fines of up to $6,600 for an individual and $33,000 for a body corporate.

For further information see our fact sheet: Sham Contracts Arrangements (PDF 94KB).

Stand-down clause

A clause in a contract, certified agreement or award allowing an employer to put a worker off without pay temporarily if work cannot be provided due to circumstances beyond the employer’s control.

Typically, a stand-down clause will allow a company to deduct payment for time during which an employee cannot be employed because of a strike, a breakdown in machinery or a stoppage of work for any reasonable cause due to an event for which the company cannot reasonably be held responsible.

Strike pay

The unlawful payment of workers engaged in industrial action. Making such payments is prohibited under the Workplace Relations Act 1996, as is the receipt of such payments. Strike payments in the construction industry are penalised at a higher rate under the Building and Construction Industry Improvement Act 2005.

Subcontractor

Subcontracting in the building and construction industry typically refers to the situation in which a head contractor allocates responsibility for a particular aspect of the work to be done to a specialist supplier of construction services. It usually involves the following arrangements:

• subcontracting businesses that employ workers under award and agreement wages and conditions or subsubcontract others when needed;

• self-employed individual subcontractors who seek work independently (independent subcontractors); or

• self-employed individual subcontractors who seek work through employment agencies.

The Independent Contractors Act 2006 and the Workplace Relations Legislation Amendment (Independent Contractors) Act 2006 protect the status of independent contractors by freeing them from the constraints of industrial and employment laws.

If you are in doubt as to your status, or the status of those working for you, we suggest that you take specialist advice. An Independent Contractors Hotline is available from 8am – 6pm (Eastern Standard Time) Monday to Friday – 1300 667 850 or Contact Us.

Further information relevant to independent contractors is available on our Fact Sheets page.

Superannuation

A system where money is placed in a fund to provide for a person's retirement.

The Australian Securities and Investments Commission (ASIC) consumer website, FIDO , has information to help you understand and make the right decisions with superannuation.

Superannuation fund

A fund which invests members' funds to provide for their retirement.

Superannuation guarantee

A prescribed minimum level of superannuation required under the Superannuation Guarantee (Administration) Act 1992 that an employer must contribute for employees. The employer can avoid paying the Superannuation Guarantee Charge if sufficient superannuation contributions are made to a complying superannuation fund or retirement savings account.

Superannuation Guarantee Charge

A charge imposed under the Superannuation Guarantee Charge Act 1992 on employers who do not meet the minimum superannuation guarantee requirements on behalf of employees.