Wednesday, August 25, 2010

The future of Australia’s industrial relations and paid parental leave policy hangs in the balance

Following the weekend’s hung parliament, HR professionals eagerly await the news of a potential new Government, which is likely to impact on both IR laws and also the much-debated paid parental leave scheme.

However, constitutional law experts have advised that negotiations over the next Federal Government could drag on until the end of November.

Professor Donald Rothwell from the Australian National University's College of Law, said parliament must meet within 30 days of electoral officials confirming the names of each candidate elected but the commission had until October 27 to do this.

"This could allow Prime Minister Gillard to convene the House of Representatives as late as 26 November 2010, thereby allowing for as long as three months for agreements to be reached with the independents," he said.

Rothwell advised that Gillard could remain as caretaker prime minister until then.

Prior to the election, Prime Minister Julia Gillard announced that Labor would offer new fathers two weeks parental leave if re-elected, in a bid to win over undecided working families. Labor's full parental leave scheme now offers mothers 18 weeks leave at minimum wage. However for working families this still appears less attractive than the Coalition's scheme which offers 26 weeks at the mother's real wage, up to a cap of $150,000.

Australia waits....

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