Although employers are only beginning to comprehend the substantial reforms ushered in by the Secure Jobs, Better Pay legislation, a fresh wave of significant changes awaits Australia’s workplace relations landscape. Here we’ll cover off the 6 key reforms.
What does it all mean?
The Federal Government’s most recent batch of reforms, known as the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023, seeks to modify the Fair Work Act 2009 and related legislation to eliminate perceived gaps that undermine worker compensation and conditions, while also fortifying Australia’s work health and safety framework.
The Closing Loopholes Bill encompasses a broad spectrum of areas within Australia’s workplace relations landscape, including casual employment, labour hire, union access rights, and imposing substantial penalties of up to $7.825 million and imprisonment for deliberate wage underpayments.
The 6 Key Reforms
Getting yourself ready
With the advent of the Closing Loopholes Bill, employers should prepare for a multitude of new applications in the Fair Work Commission (FWC), as it significantly bolsters the FWC’s authority to settle disputes concerning a plethora of proposed changes.
It’s important to bear in mind that the suggested reforms outlined in the Closing Loopholes Bill are still in draft form and subject to potential alterations. Additionally, the bill necessitates crossbench support before it can become law, which could entail further revisions during parliamentary debates. The Federal Government anticipates that this legislation will be ratified by Parliament by November or December of this year.
Given the extensive scope of changes within the Closing Loopholes Bill, providing a detailed analysis of each alteration in this communication is unfeasible. As the bill advances through Parliament, we will offer ongoing updates on the specific amendments.
In a nutshell
Here are some of the principal’s proposed modifications:
- Casual Employment: Redefining “casual employee” and establishing pathways to permanent employment. A new definition of a “casual employee” will be introduced, contingent on factors such as mutual understanding, work acceptance, future work availability, and work patterns. Casual employees will also have the option to transition to permanent employment after six months (or twelve months for small businesses) under specific conditions, subject to dispute resolution by the FWC.
- Employee and Employer Definitions: Introducing an interpretative principle to ascertain whether an individual is classified as an “employee” or “employer” based on the true nature of the working relationship.
- Labour Hire: Ensuring labour hire workers receive comparable pay to directly hired employees. Employees, unions, and host employers can apply to the FWC for pay equity orders. Exemptions apply to specific situations.
- Wage Theft: Criminalizing wage underpayments and elevating civil penalties. Employers intentionally underpaying employees may face imprisonment and substantial fines. The Fair Work Ombudsman may consider self-disclosure in evaluating criminal proceedings.
- Workplace Delegates: Introducing a framework for workplace delegates’ rights, including paid training. Workplace delegates will have specific rights to represent union interests and access to workplace facilities.
- Union Right of Entry: Expanding right of entry for registered organizations to investigate wage underpayments. Valid entry permit holders can enter workplaces. Exemption certificates may be granted under specific circumstances.
- Gig Workers: Empowering the FWC to establish minimum standards for gig economy workers. These standards will cover payment terms, deductions, working hours, and insurance, among others.
- Road Transport Workers: Granting the FWC the authority to set minimum standards for the road transport industry. A consent-based collective agreement framework and dispute resolution for unfair contract terminations will be introduced.
- Unfair Contract Terms: Establishing an informal jurisdiction in the FWC for resolving disputes between independent contractors and principals about unfair contract terms in services contracts.
- Discrimination: Expanding discrimination protections to include “subjection to family and domestic violence” as a protected attribute.
- Small Business Redundancy: Amending the small business redundancy exemption to ensure that it does not apply to businesses that downsized due to insolvency.
In summary
These proposed changes reflect a significant shift in Australia’s workplace relations framework, and stakeholders should closely monitor the progress of the Closing Loopholes Bill as it makes its way through Parliament.
If you would like more information or support interpreting and preparing for these 6 key reforms, contact us today.
