Document ID: chunk:federal_register_of_legislation:C2007C00183:clause:1_117a
Version: federal_register_of_legislation:C2007C00183
Segment Type: clause
Provision Reference: sch 1 cl 117A
Character Range: 501973–504253

117A  Preserved award terms of rationalised awards

 (1) This section applies to an award (the rationalised award) if:
 (a) the award is made under section 118E or is varied under section 118J; and
 (b) immediately before the making or variation, a preserved award term was included in one or more of the following awards (the replaced award):
 (i) any award that the rationalised award has the effect of replacing;
 (ii) if the rationalised award is an award varied under section 118J—the award as in force immediately before the variation.

Note: A replaced award may be either an award made under section 118E or a pre‑reform award (which may subsequently have been varied).

 (2) The preserved award term of the replaced award is taken to be included in the rationalised award.

 (3) The preserved award term is taken to have the effect that:
 (a) employees belonging to the class of employees that had entitlements under the preserved award term of the replaced award have corresponding entitlements under the rationalised award; and
 (b) employees belonging to any class of employees that did not have entitlements under the preserved award term of the replaced award do not gain entitlements under the rationalised award.

Note: This means that the class of employees who had preserved award entitlements under replaced awards retain those preserved award entitlements after award rationalisation, but the class of employees who have such entitlements is not expanded.

 (4) The preserved award term is taken to have the effect that:
 (a) only an employer bound by the preserved award term of the replaced award is bound by the corresponding preserved award term of the rationalised award; and
 (b) other employers are not so bound.

Note 1: This means that the class of employers bound by preserved award terms is not expanded as a result of award rationalisation.

Note 2: The operation of this subsection is affected by Part VIAA, which deals with transmission of business.

 (5) For the purposes of subsection (3), whether an employee belongs to a class of employees that had entitlements under a preserved award term of a replaced award is to be determined without reference to whether the employee was employed before or after the making of the rationalised award.