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HIGH COURT UPHOLDS WORK CHOICES LEGISLATION

On 14 November 2006, the High Court of Australia handed down its decision by a five to two majority that the federal government had power to enact the Work Choices Legislation.  The Court rejected challenges from state and territory governments and unions in relation to the validity of the legislation as a whole and in part.

In a joint judgment, the majority judges, CJ Gleeson, JJ Gummow, Hayne, Heydon and Crennan held that the Work Choices Legislation was validly enacted under the Corporations Law pursuant to the Constitution of Australia.

Their Honours stated in their decision that laws prescribing the industrial rights and obligations of companies and their employees are laws which are validly prescribed in relation to constitutional corporations.  The majority therefore concluded that the specific power given to the Commonwealth under the Constitution of Australia to legislate over industrial disputes does not prevent the Commonwealth from relying on other heads of power to regulate industrial relations matters more broadly.

Justices Kirby and Callinan delivered separate judgments indicating that in their view, the Work Choices Legislation is invalid.

It therefore seems that the Work Choices is here to stay and state systems of industrial regulation will become increasingly less relevant.

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