Notional Agreement Preserving State Awards: A Guide for Employers and Employees
Have you ever heard of notional agreement preserving state awards (NAPSA)? If you`re an employer or employee in Australia, it`s worth familiarizing yourself with this concept as it can have significant implications on your employment agreements and entitlements.
What is NAPSA?
NAPSA refers to a clause in an employment agreement that preserves state-based awards for employees who were previously covered by these awards before transitioning to a new enterprise agreement. Essentially, it means that even if an employee`s new enterprise agreement offers different terms and conditions than their previous award, they can still be entitled to the benefits and entitlements of their previous award.
Why does NAPSA exist?
NAPSA exists to protect the entitlements and benefits of employees who have transferred from a state-based award to a new enterprise agreement. Without NAPSA, employees could potentially lose out on certain entitlements or benefits they were previously entitled to under their previous award.
For example, if an employee in Queensland was covered by the Queensland state award for their industry, and then transitioned to a new enterprise agreement, they may no longer be entitled to the same level of annual leave, penalty rates, or other benefits they were previously entitled to under the Queensland award. However, with NAPSA in place, they would still be entitled to these benefits and entitlements.
How can employers ensure compliance with NAPSA?
Employers can ensure compliance with NAPSA by ensuring that their employment agreements contain a clause that specifically references NAPSA and stipulates that the employee`s entitlements and benefits under their previous award will be preserved. Employers should also ensure that any new enterprise agreement they offer does not undermine or negate the entitlements and benefits of the employee`s previous award.
Employees, on the other hand, should be aware of their entitlements and benefits under their previous award and ensure that these are preserved when transitioning to a new enterprise agreement.
In conclusion, notional agreement preserving state awards (NAPSA) is an important concept for employers and employees to understand. It helps to ensure that employees who have transitioned from a state-based award to a new enterprise agreement are not disadvantaged or lose out on entitlements and benefits they were previously entitled to. Employers should ensure that their employment agreements comply with NAPSA, while employees should be aware of their entitlements and benefits and ensure they are preserved when transitioning to a new agreement.