LEGAL ALERT

Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 – Effective dates of changes

9 December 2022

* Note the information in this Alert takes account of the passage of the Bill on 2 December 2022 and subsequent Royal Assent.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (the FW Act) received royal assent on 6 December 2022.

The FW Act provides for significant changes to workplace laws in Australia which relate to, for example, multi-employer bargaining, fixed-term contracts, gender equality, discrimination protections and pay secrecy clauses.

The table below provides some of the key changes under the FW Act and when they will take effect.

Changes to the Fair Work Act 2009 (Cth) (FW Act) Effective date of change
Bargaining disputes 6 June 2023, or an earlier date to be fixed by proclamation
Better Off Overall Test (BOOT) 6 June 2023, or an earlier date to be fixed by proclamation

Changes will then apply to any enterprise agreement ‘made’ (i.e. voted up by employees) on or after commencement.

Cooperative workplaces bargaining stream 6 June 2023, or an earlier date to be fixed by proclamation
Initiating bargaining – single enterprise agreements 7 December 2022
National Construction Industry Forum 1 July 2023
Single interest bargaining stream 6 June 2023, or an earlier date to be fixed by proclamation
Simplifying enterprise agreement approval requirements 6 June 2023, or an earlier date to be fixed by proclamation

Changes will then apply to any proposed agreement for which the ‘notification time’ occurs before commencement.

Sunsetting of zombie agreements 7 December 2022
Supported Bargaining stream 6 June 2023, or an earlier date to be fixed by proclamation
Termination of enterprise agreements after nominal expiry date 7 December 2022
Establishing two new Expert Panels in the Fair Work Commission 6 March 2023, or an earlier date to be fixed by proclamation
Including gender equality and job security in the objects of the FW Act 7 December 2022
Limiting the use of fixed term contracts 6 December 2023, or an earlier date to be fixed by proclamation
Prohibiting pay secrecy clauses 7 December 2022

From 7 June 2023, it will be an offence for an employer to enter into a new employment contract with an employee that contains a pay secrecy clause.

Equal remuneration provisions 7 December 2022
Right to flexible working arrangements 7 June 2023
Unpaid parental leave 7 June 2023
Amending the FW Act small claims process The amendments are complemented by a review of the small claims procedure under the FW Act to consider broader reforms, which will take place in 2023.

The changes relating to the increase of the small claims cap and filing fees will come into effect on 1 July 2023. The review of the small claims procedure will begin on 1 January 2023.

Prohibiting job advertisements that would breach the FW Act 7 December 2022, and apply to jobs being advertised on or after 7 January 2023, whether or not the same job has first been advertised before that date.
Improving workers’ compensation outcomes for firefighters 7 December 2022
Prohibiting sexual harassment in the FW Act 6 March 2023
Strengthening protections against discrimination 7 December 2022
Abolishing the Australian Building and Construction Commission The Code for the Tendering and Performance of Building Work 2016 (the Building Code) has been repealed. The abolition of the Australian Building and Construction Commission will occur no later than two months after the Act received Royal Assent (6 February 2023).
Abolishing the Registered Organisations Commission No later than 6 June 2023, or an earlier date to be fixed by proclamation.

How does this impact employers?

Employers should review their employment contracts, policies and template documents before the abovementioned dates to ensure compliance with the legislation and ensure there is no breach of the provisions, which may attract penalties.

EMA can assist employers with reviewing their template documents and policies and answer any queries regarding the new legislation.

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This Newsletter is made available to our clients and interested parties to provide immediate access to information about important changes and developments relevant to employers. The information contained in this publication should not be relied on as legal advice and should not be treated as a substitute for detailed advice that takes into account particular situations and the particular circumstances of your business.