The passing of this legislation means a large number of changes will soon come into effect which will change some Acts that are relevant to how businesses work. The key points the Act will change are fixed term employment, workplace relations relating to bargaining, pay secrecy, and workplace conditions and protections such as sexual harassment and discrimination, flexible working arrangements and equal pay. As part of our service, we endeavour to ensure our clients are aware of any Human Resources or Industrial Relations changes that affect them.
In a series of articles, ProcessWorx will set out the main changes included in the Act that will impact businesses across Australia.
Fixed term employment
The Act introduces prohibitions to limit the use of fixed term contracts for the same role or substantially similar work, to two consecutive contracts or a maximum duration of two years. This is to extinguish the use of “rolling” fixed term contracts. These restrictions will apply to both extensions or renewals of an existing contract as well as consecutive or new contracts, where the work is the same or considerably the same and there is substantial continuity of service. Several exemptions have been included for employees with special circumstances, however, the employer will bear the evidential burden to demonstrate why the exemption applies. Should you have any concerns regarding fixed term contracts and your business, please contact ProcessWorx.
Where employers engage employees on extended or rolling fixed term contracts, they will then be exposed to monetary penalties under the Fair Work Act 2009 (Cth).
Employers are now required to provide employees with a fixed-term contract information statement before or as soon as practicable after the contract has been entered into.
This change will commence from the 6th of December 2023, or an earlier date to be decided by proclamation. This grace period will give employers time to understand their new obligations and make the necessary adjustments. Anti-avoidance provisions are also included in the Act to prevent any employers from manufacturing circumstances to avoid the prohibition, which includes delaying re-hiring an employee, or artificially changing the tasks the employee will perform.
Enterprise Bargaining
Several changes have been made to the bargaining framework which aims to make the bargaining process more accessible and attractive to both employees and employers. A key feature of the Act establishes a clear path for unions to be able to force:
- multiple employers to bargain for a multi-employer agreement,
- a multi-employer agreement to be imposed on those employers, and
- other employers to be covered by the agreement after it has been made.
This is a significant change from the previous model which was based upon employers offering an agreement to be voted on by their employees.
Small businesses with more than 20 employees will be largely impacted by this change and can now be compelled to bargain for multi-enterprise bargaining agreements.
The Act will now allow the Fair Work Commission to terminate agreements after they have passed their nominal expiry date. Where an application to terminate an agreement has been made, the Fair Work Commission must consider the view of the employees, employer, and unions covered by the agreement.
The Act will also automatically terminate any “zombie agreements” or “Collective Agreements” that were approved prior to 1 January 2010.
Employers will have until December 2023 to address if they fall within this scope. If a new agreement has not been put in place after December 2023, employees will automatically fall under their relevant modern award.
These changes are now in effect as of the 7th of December 2022.
How ProcessWorx can help your business:
With over 10 years of experience working with small businesses, ProcessWorx knows the importance of understanding and protecting your business from ongoing changes to the Human Resources or Industrial Relations landscape, while ensuring you remain compliant and up to date. If you need assistance implementing the above changes in your business or would like a review of your current workforce planning and contracts, please contact ProcessWorx and we can assist you with your HR compliance.
If you would like more information about Human Resources or Industrial Relations for your business, please contact ProcessWorx on (08) 9316 9896 or enquiries@processworx.com.au
Follow ProcessWorx on LinkedIn, Facebook, Instagram, YouTube, and Twitter to keep up with the latest HR and Safety news.
