12Condition of grant—workplace reforms

#### 12 Condition of grant—workplace reforms (1) The State must implement workplace reforms in the vocational education and training sector, including the following: (a) giving technical and further education institutions (TAFE institutions) greater flexibility and capacity to respond to local industry and community needs within the context of the national requirements of the Skilling Australia’s Workforce Agreement; (b) ensuring that TAFE institutions introduce more flexible employment arrangements; (c) supporting stronger leadership and authority for directors (however described) of TAFE institutions, including in relation to recruitment and remuneration of employees; (d) implementing a fair and transparent performance management scheme in TAFE institutions that rewards high performance by employees (including through performance pay) and manages underperformance; (e) providing capacity for TAFE institutions to retain revenue and generate increased revenue through partnerships with industry and sponsorship arrangements; (f) providing capacity for TAFE institutions to develop entrepreneurial and commercially oriented business plans; (g) ensuring that TAFE institutions’ workplace agreements, AWAs, policies and practices are consistent with the freedom of association principles contained in the Workplace Relations Act 1996. In particular, TAFE institutions must neither encourage nor discourage trade union membership. (2) Subsection (1) does not require the amendment or variation of pre‑reform certified agreements (within the meaning given by the Workplace Relations Act 1996) or other industrial instruments in force on the day on which this Act commences. (3) However, all pre‑reform certified agreements, workplace agreements, AWAs or other industrial instruments made or lodged on or after the day on which this Act commences must be consistent with the workplace reforms referred to in subsection (1). (4) All workplace policies and practices in effect on the day on which this Act commences must be amended or varied to be consistent with those workplace reforms, except to the extent that to do so would be directly inconsistent with a pre‑reform certified agreement or other industrial instrument in force on that day.