New Industrial Relations Legislation Passed

Fair Work Amendment (Secure Jobs, Better Pay) Act 2022

The new Fair Work Amendment (Secure Jobs, Better Pay) Act 2022 received royal assent on the 5 December 2022.

This Act may have significant effects particularly on small business. There are a number of changes that you as a business owner need to be aware of, listed below are the strategic implications:

Multi-enterprise bargaining:

The scope of multi-employer bargaining has been extended, giving employees and unions increased power to require multiple employers to bargain for agreements. This means that your business may now be roped into an industry agreement where the terms and conditions will have already been set. There will be a nine month grace period.

To avoid being ‘roped in’ to a multi-bargaining industry agreement – employers will have the ability to negotiate a single-enterprise agreement during the nine month grace period. If you have a ‘zombie agreement’ (which is an agreement approved prior to 1 January 2010), which currently covers the terms and conditions of employment for your employees you will need to negotiate a new single enterprise agreement as the expired agreement will be terminated after an initial 12 month grace period.

Gender Pay Equity:

The Act aims to address the gender gap by:

• Amending provisions to the Equal Remuneration orders
• The FWC can make an Equal Remuneration order on its own initiative
• Banning pay secrecy – meaning you can no longer have a confidential clause within an employment contract. Employers risk a civil penalty if pay secrecy clauses are contained in new contracts
• Employees have been given a workplace right to disclose, or seek disclosure from a person, of their remuneration or terms and conditions of their employment

Fixed-term Contracts:

The Act will prohibit an employer from engaging an employee on a fixed/term contract:

• Of more than two (2) years
• Two such contracts that cumulatively exceed two (2) years

Respect@Work and sexual harassment:

There is now an express prohibition for a person to sexually harass another person in connection with work.

It is recommended that the workplace has a policy covering sexual harassment at work and ongoing regular training to all employees.

Extension of anti-discrimination provisions:

The anti-discrimination provisions have been amended to be consistent with other Commonwealth anti-discrimination legislation. The amendment will allow inclusion of breast feeding, gender identity and intersex status.

Parental Leave:

There are changes where the employee can apply for an extension of unpaid parental leave for a further period of up to 12 months following the end of the available parental leave. The employer will have 21 days to respond to the request. Requests can only be refused on reasonable business grounds, including when the request is too costly for the employer, the changes are impractical, the changes would impact existing employee work arrangements or it would result in significant efficiency and productivity losses.

The MPAQ HR team are developing a range of resources for members which will be rolled out in early 2023. If you have any question or concerns please contact one of the HR team on 3273 0800 or hr@mpaq.com.au