Upcoming Workplace Relations Changes

2022 has been a big year for Industrial Relations in Australia, with a number of significant changes (and proposed changes) on the horizon. The most extensive potential changes originate from the recent introduction of the Fair Work Legislation Amendment (Secure Job Better Pay) Bill 2022 into parliament, which if passed will affect the enterprise bargaining process, job security, and pay equity in the workplace.

Paid Family and Domestic Violence leave will also be introduced into the National Employment Standards (NES), and there will be an increase to Services Australia’s Parental Leave Pay entitlement to 26 weeks announced in the most recent Federal Budget.

This can be a lot to take in, so the HR Advisory Service has prepared an article to flag and discuss these coming changes. 

Secure Jobs Better Pay Bill 2022

Note: This bill has only been introduced into parliament at this stage, so we will note that the following changes are not final just yet, but they have the most far-reaching effects if passed. These include:

Making pay secrecy clauses illegal: Contracts and industrial instruments that prevent employees from discussing their remuneration with others will no longer be permitted. The aim is to promote gender equity within the workplace, and it will now be a workplace right for employees to ask their colleagues about their rates of pay (who are also entitled to refuse to answer).

Flexible working arrangements: Employees already have an ability to make a request for flexible working arrangements under certain circumstances. New provisions include requiring employers to genuinely try and reach agreement, including suggesting alternative options, and allow employees to contest a refusal with the Fair Work Commission – who will have powers that include require an employer to grant the request

Fixed-term contract limitations: There will be a limitation to fixed term contracts (where they end at a pre-determined time period). Unless they meet certain criteria, the terms will not be valid if they extend for a period of more than two years, or it may be renewed so they’re employed for more than two years, or it is a new contract following on from a previous fixed-term contract that means together they extend for more than two years.

Small claims jurisdiction for underpayments: Currently the cap on small claims for underpayment is $20,000. This bill will look to increase the cap up to $100,000.

Enterprise Bargaining Agreements (EBA): One of the more substantial changes, it promises to shake up multi-employer bargaining, and among other changes, now also permit employees (through employee bargaining representatives) to require multiple employers to enter bargaining process, so long as there are clearly identifiable common interests between the employers, and also add new employer’s to existing agreements.

Prohibition below minimum pay rates in job advertisements: It will now be an offence to advertise a role at a pay rate that is less that what is proscribed in the Fair Work Act 2009 or an industrial instrument – an EBA or modern award.

Sexual Harassment and Anti-Discrimination Changes: Protections against sexual harassment will be expanded. Instead of just covering sexual harassment between two employees, it will also extend to cover sexual harassment that occurs in connection with a worker, a prospective worker, or a person conducting a business or undertaking. This means it will include third parties like a customer or client, or any member of the general public. 

Three forms of discrimination will be added to existing general protections provisions. These will cover breastfeeding, gender identity, and intersex status.

Paid Family and Domestic Violence Leave

Currently, the NES provides for 5 days of unpaid family and domestic violence leave.

The recently passed Fair Work Amendment (Paid Family and Domestic Violence Leave) Bill 2022 will now provide employees with 10 days of paid family and domestic violence leave. This will be paid at the ordinary rate of pay they would have otherwise received had they worked, and casual employees will also be entitled to this paid leave. This leave entitlement will reset each year, rather than accruing progressively.

The same evidence requirements for the unpaid leave will apply, and employers should take reasonable steps to ensure information is kept confidential.

It will take effect from 1 February 2023 for most businesses, but small businesses (with 14 employees or less) will be given a grace period of 6 months.

Increase to Parental Leave Pay (PLP)

The recent budget announced an intention to increase the length of the Parental Leave Scheme through Services Australia (Centrelink) to 26 weeks.

The current entitlement is 20 weeks (18 weeks parental leave PLP and 2 weeks Dad and Partner Pay). From 1 July, 2023, this will be combined into a single 20 week payment, and starting from 1 July, 2024, PLP will then increase by 2 weeks per year until it reaches 26 weeks on 1 July, 2026.

Other changes include allowing for gender neutral claiming so either parent may access to claim the PLP. Both parents will also be allowed to access it at the same time, and it may be taken in smaller blocks (as little as one day) while working in between.

In summary

There are many different changes coming to our industrial relations landscape, and it is important for employers to reman informed so they can be prepared as best as possible.

The HR Advisory Service will keep members informed about the status of these new IR reforms and reach out as they begin to each take effect. If at any time you are unsure of your obligations towards your employees, please feel free to contact the HR Advisory Service on 1300 788 977 or via email for more information.