IR Reforms Update
Highlighting the changes that have come into place from Jan-July 2024.
In the ever-evolving landscape of industrial relations has come notable changes focused on strengthening worker entitlements and promoting fairness in workplaces. Throughout the course of the year (Jan-July), a group of legislative amendments (Secure Jobs, Better Pay Act, various Closing Loopholes Acts and further Fair Work Act 2009 changes, has reshaped the framework of employment relationships and workplace safety.
Let’s delve into the key updates and what lies ahead in the area of industrial relations.
1st January 2024
Protecting Worker Entitlements – Superannuation Guarantee Under the NES
Superannuation entitlements were integrated into the National Employment Standards (NES) under the Protecting Worker Entitlement laws. This ensures that employees have a legally enforceable right to superannuation. While this doesn’t alter how employers manage super payments or payroll, it expands the avenues for employees, unions, and authorities to address unpaid or underpaid contributions through the Fair Work Ombudsman and the ATO.
Employers must ensure timely super payments and provide new employees with the updated Fair Work Info Statement as part of compliance efforts. Additional information is available on the Fair Work Ombudsman and DEWR websites, and Edwards HR is available for support.
27th February 2024
Sham Contracting
Changes to the sham contracting defence have occurred. Previously, the ‘recklessness’ test was replaced by a ‘reasonableness’ test. Where there is a dispute about the true nature of a ‘contractor’, employers must now prove they reasonably believed the worker was a contractor.
Civil penalties and serious contraventions
The new penalties under the Fair Work Act 2009 are primarily aimed at non-small business companies, with fines reaching $469,500 per contravention or $4,695,000 for serious breaches. Both companies and individuals now face doubled penalties for non-compliance with compliance notices. Additionally, the definition of a serious contravention has shifted to include actions done knowingly or recklessly.
Changes to enterprise agreements? and the bargaining process
Allowing the transition from a single-interest employer agreement or supported bargaining agreement to a single-enterprise agreement. Terms in an intractable bargaining determination made by the Commission can’t be less favourable to employees (or employee organisations) than terms in the existing enterprise agreement that deal with the same matters.
Compliance notice measures
Clarification that compliance notices issued by the Fair Work Ombudsman can require an employer to calculate the amount of underpayment owed to an employee. A court can order an employer to comply, either in part or in full, with a compliance notice.
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Demergers of registered organisations
Changes made to the Fair Work (Registered Organisations) Act in 2020 will be repealed, restoring the requirement that demerger applications from amalgamated registered organisations be made 2 to 5 years after the amalgamations occurred.
1st July 2024
Modern Awards, Delegates’ Rights Term
Compliant delegates’ rights terms will be mandated in all modern awards and forthcoming enterprise agreements on or after 1st July 2024.
Industrial Manslaughter added to the Work Health and Safety Act and increases to other penalties
The changes amend the WHS Act to strengthen the work health and safety offences and penalties regime by creating higher penalties for breaching work health and safety duties. An indexing mechanism applies to ensure work health and safety penalties retain their relative value and remain a serious deterrent into the future. New criminal responsibility provisions to ensure bodies corporate, and the Commonwealth are held accountable for breaches of work health and safety duties.
Exemption certificates for suspected underpayments
Registered organisations (usually unions) will be able to apply for an exemption certificate from the Commission to waive the 24 hours’ notice requirement for entry to investigate suspected underpayments. This applies where advance notice would interfere with the investigation.
July 2024 onwards
There are further changes from August onwards, most notably in relation to casual employment and the right to disconnect. You can read about these on our website.
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