Secure Jobs, Better Pay Legislation now Passed - How it works

In a commitment to improved job security and lifting wages, the Albanese Labor Government’s proposed Secure Job, Better Pay Bill has passed Parliament, with the new updates to Australia’s Industrial Relations system now law.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 received Royal Assent in early December 2022, with new IR considerations needed to be maintained by employers and businesses having entered into the New Year.

The Act reforms such areas including enterprise bargaining, fixed-term contracts, and gender equality in the workplace.

While detailed information on the new changes is available via the Department of Employment & Workplace Relations website, we have summarised some of the key changes of interest below:

Enterprise Bargaining

A number of changes have been made to the bargaining framework, aimed at making bargaining more accessible and attractive for both employees and employers alike.

These changes include simplifying Enterprise Agreements Approval Requirements, including the ‘Better-Off-Overall-Test’, and empowering the Fair Work Commission to assist bargaining parties to overcome bargaining disputes and reach agreements.

New changes to Single Interest Bargaining Authorisation will also allow the making of multi-employer agreements with a group of employers such as franchisees who share “clearly identifiable common interests”

Businesses with less than 20 staff will be excluded from multi-employer bargaining, whilst business less than 50 staff allowed to opt-out of bargaining with the onus on Unions to set out a case as to why they should be included.

Revisions to Fixed-Term Contracts

The new reforms introduce provisions prohibiting employers from entering into fixed-term contracts for the same role (or substantially similar work) with employees for a period of longer than two years (in total across all contracts).

The change also converts fixed-term contracts to permanent employment in certain circumstances.

Some exemptions to the new amendments exist including for casuals, apprentices or trainees, high-income workers ($162,000 per annum), work covering peak periods of demand, or work performed via specialist engagement. The Fair Work Commission has also been empowered to create additional exceptions in modern awards.

Alongside this, employers are now required to provide employees with a Fixed-Term Contract Information Statements before or as soon as practicable after the contract is entered into.

Ban on Pay Secrecy Clauses

One of the biggest changes in the Act pertains to “pay secrecy clauses”, with the new legislation prohibiting such clauses in employment contracts. The exclusion of these clauses now provides employees the right to disclosure (should they wish) their pay and remuneration to others.

The introduction of such measures by the Government aims to allow open conversations among the workplace to assess whether they are being fairly paid by their employer.

Under the legislation, existing clauses are now deemed invalid and those employers who continue to impose any “pay secrecy clauses” could be subject to penalties.

Greater Flexible Working Provisions

Furthermore, employees will have greater access to flexible working arrangements and strengthened flexible work requests as part of the Fair Work Act changes.

Employees will now be able to seek formal arbitration with the Fair Work Commission where their employer refuses to negotiate a flexible working arrangement or has not responded to a flexible work request within 21 days.

Similarly, businesses will also now be required to provide a “reasonable answer” as to why they may refuse a flexible work options, and must “genuinely attempt to reach an agreement prior to refusing an employee’s request”.

The new provisions also expand the circumstances in which an employee may request a flexible working arrangement, with greater strength provided to those experience issues of family or domestic violence.

Other Outlined New Provisions

The Secure Jobs, Better Pay legislation also introduces stronger provisions against sexual harassment in the workplace, with employers potentially vicariously liable for acts by their employees or agents unless they can show all reasonable steps to prevent harassment issues. Similarly, greater provisions have been implemented to strengthen anti-discrimination.

Furthermore, stronger changes have been announced surrounding the alignment between pay rates listed through job advertisements and the Fair Work Commission.

For More Information

For more information on provisions outlined in Secure Jobs, Better Pay Bill and how they may impact your business, or if you would like a referral to an HR or Industrial Relations specialist, please contact the Archer Gowland Redshaw office on (07) 3002 2699 | info@agredshaw.com.au.