In 2022, significant changes were made to industrial reform, leading to the introduction of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill. This bill aims to improve pay conditions and job security by amending several existing workplace laws.
Some changes took effect on 7 December 2022, and many more followed throughout 2023. Preparation and awareness of these changes are essential for employers to ensure workforce compliance.
On 30 June 2023, the Governor-General of Australia approved the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023. The Act amendments covered areas of workplace relations laws relating to workplace determinations, protection for migrant workers, superannuation, employee authorised deductions, unpaid parental leave, and some others.
This article shares some major changes and their impact on employers and employees.
Protection for Migrant Workers
On 22 June 2023, the Australian Government passed the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023. The legislation amends the Fair Work Act.
The Australian Government have introduced several new migrant worker protections, including protection against visa cancellation, flexible visa requirements for future sponsorship visas, and a short-term visa for bringing wage claims against exploitative employers.
The Fair Work Ombudsman has amended the Visa holders and migrants’ section of the website and the fact sheet to reflect the changes.
The change clarifies the following:
- Migrant workers are entitled to the same rights regardless of migration status, as the Migration Act of 1958 guarantees.
- A breach of the Act does not invalidate employment or service contracts.
This includes circumstances where a migrant worker:
- Has breached a visa condition.
- Doesn't have work rights or
- Doesn't have the right to be in Australia.
Authorised Employee Deductions
From 30 December 2023, Employee Authorised Deductions allows employers to make recurring or regular deductions from their salary for varying amounts, provided the authorisation is in writing and the deductions are principally for the employee's benefit (and not the employer's).
Employees must provide a single written authorisation to allow their employer to deduct amounts from their salary. This is even where the deduction amount varies from year to year. The employee can withdraw the authorisation/agreement in writing at any time.
Update to Unpaid Parental Leave
From 1 July 2023, employees taking unpaid parental leave have greater flexibility. This update aligns with changes to the Paid Parental Leave Scheme.
All employees who have completed at least 12 months of continuous service with their employer are eligible for unpaid parental leave.
Casual employees are eligible for unpaid parental leave if they have:
- Been working for their employer regularly and systematically for at least 12 months.
- A reasonable expectation of continuing work with the employer regularly and systematically had it not been for the birth or adoption of a child.
The extra two weeks of pay have been added to the existing entitlement of 18 weeks of Parental Leave Pay. If you are in a partnered couple, you can claim up to 20 weeks of paid parental leave between you. However, if you are a single parent, you can still access the full 20 weeks of paid leave.
- Pregnant employees can take flexible unpaid parental leave up to 6 weeks before their expected due date.
These changes affect employees whose baby is born or placed in their care on or after 1 July 2023.
Employees can take more than 8 weeks of unpaid parental leave with their spouse or de facto partner.
Both parents have the option to take up to 12 months of unpaid parental leave within 24 months of their child's birth or placement. Additionally, they may apply for an extension of up to 12 months beyond the initial 12-month leave period.
More information can be found in the Parental Leave section on the Fair Work website.
Changes to Enterprise Agreements and Enterprise Bargaining
Changes to Enterprise Bargaining are among the most important amendments.
In the Secure Jobs, Better Pay Bill, existing barriers to bargaining with employers have been removed, making it easier for employees to deal with their employers.
The multi-employer bargaining system encourages employees across different companies to negotiate better working conditions together. According to the Labor government, this is intended to raise wages and provide better working conditions than Modern Awards.
An end to Zombie Agreements - Change effective 7 December 2023.
As part of a process known as sunsetting, all enterprise agreements made before the commencement of the Fair Work Act on 1 January 2010 will automatically terminate on 7 December 2023. By applying to the Fair Work Commission, you can extend your agreement's sunset date by up to 4 years at a time.
In addition to these changes, other changes include
Approval of enterprise agreements:
- Better off overall test (BOOT)
- Bargaining disputes
- Industrial action
- Bargaining streams
Extension to Flexible Working
From 6 June 2023, more employees can request flexible working conditions. This includes:
- Employees or members of their immediate family or household experiencing family and domestic leave.
- Pregnant employees.
Before refusing requests for flexible work arrangements, employers must follow new obligations:
- Ensure you discuss the request with the employee.
- To accommodate the employee's circumstances, make an honest effort to find alternative arrangements.
- Ensure you know the consequences if you refuse flexible working arrangements for an employee.
- Provide a written response to the employee if you refuse the employee's request, covering the following:
- Outline the business grounds for the refusal of the request.
- Any changes the employer is willing to make to accommodate the employee's circumstances or ensure no changes.
- Referral information on the Fair Work Commission (the Commission).
Employers must respond to flexible working arrangements in writing within 21 days.
The Fair Work Commission (FWC) can be contacted by an employee who is unsatisfied with the outcome or the employer does not respond within 21 days. FWC may use arbitration in handling the case.
More information can be found here, including the right to request flexible work arrangements.
Paid Family and Domestic Violence Leave Bill
The ALP introduced the Paid Family and Domestic Violence Leave Bill in late 2022.
The Paid Family and Domestic Violence Leave Bill is a significant step towards ensuring employees' well-being and security. Below, we outline the key provisions of the bill and its potential impact on workers and businesses.
Employees in the Fair Work system who experience family or domestic violence or support family and household members will be able to access ten days of paid family and domestic violence leave in a year.
Family and domestic violence leave was available on two dates, depending on the business size. Employees receive the 10 days upfront, and the days do not accumulate or carry over.
- Businesses with 15 or more employees can offer paid family and domestic violence leave from 1 February 2023.
- Businesses with less than 15 employees can offer paid family and domestic violence leave from 1 August 2023.
For more information about paid family and domestic violence leave, visit fairwork.gov.au.
Fixed-term Contract Restrictions
From 6 December 2023, it is no longer possible to offer a fixed-term employment contract that lasts longer than two years or is renewable more than once (subject to limited exceptions).
Employers will no longer be able to renew an existing contract where it has been previously renewed or if the total length of the contract exceeds two years (subject to the limited exceptions outlined below).
What are the limitations of using fixed-term contracts?
There are 3 rules to follow, including:
- Time Limitation - A fixed-term contract can no longer be over 2 years, including extensions and renewals.
- Renewal Limitations - Fixed-term contracts cannot:
- Be extended or renewed so that the employment period (including the extension or renewal period) is longer than 2 years.
- Be extended or renewed more than once.
- Consecutive contract limitations - Employers cannot offer new fixed-term contracts if:
- The contract is for the same work as the previous fixed-term contract.
- Former and new contracts don't have a substantial break in employment relationship.
- Any of the following applies:
- The previous and new fixed-term contracts total more than 2 years.
- New fixed-term contracts can be renewed or extended.
- A previous fixed-term contract was extended.
- Before the previous contract, there was an initial fixed-term contract.
- Mostly for the same project.
- There was continuity of the employment relationship from the period of time (if any) between the initial contract and the previous contract.
Exceptions
There are several exceptions, and more information can be found on the Fair Work Website.
What does this mean for employers?
If fixed-term contracts are part of employment arrangements, some arrangements may be impacted from the 6 December 2023.
What should an employer do?
Examine and assess the exceptions, the continued use of fixed-term contracts, and whether those arrangements need to be transitioned to new ones.
Review any options alongside the terms of any applicable modern award that covers employees on fixed-term contracts.
Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023
On 30 March 2023, the Federal Parliament passed the Workplace Gender Equality Amendment (WEGA) (Closing the Gender Pay Gap) Act 2023. Employers need to be aware of the changes to ensure they comply.
The changes in legislation introduced new mandatory reporting requirements for certain employers. The Workplace Gender Equality Agency (Agency) has been given the authority to publish employer gender pay gap information to drive targeted action and encourage organisational change.
When do these changes come into effect?
The new reporting obligations come into effect on 1 April 2024.
Who do these changes affect?
The employers that are required to report to WGEA are:
- A registered higher education institution that is an employer
- A natural person, a body, or an association (incorporated or not), that employs 100 or more employees in Australia.
- A Commonwealth company or entity that employs 100 or more employees in Australia.
More information can be found on the Workplace Gender Equality Agency website.