Secure Jobs, Better Pay Bill 2022
On December 02 2022 the Parliament passed the Secure Jobs and Better Pay Bill 2022. The Bill is set to become an operative law on an incremental basis with some aspects having immediate effect. These changes span across a number of areas and will have a significant impact in Australian workplaces, noting these changes are being viewed as both ambitious and contentious.
A snapshot:
Enterprise Bargaining
Multi-employer bargaining will now be divided into three streams, single-interest employer authorisation, supported bargaining and cooperative workplaces. This change will mean employers or employee bargaining representatives can seek an authorisation from the FWC requiring an employer to bargain in conjunction with other employers with ‘common’ interests subject to certain criteria.
Unions will have the power to initiate bargaining with employers without having to apply for an Majority Support Determination (MSD) in certain circumstances. Unions and employees will be able to apply for reconsideration of the better off overall test during the operation of the agreement in certain circumstances.
Better Off Overall Test (BOOT)
The Better Off Overall Test will be revised to allow the Fair Work Commission to approve an agreement as being better off overall provided that employees are better off “globally”, as opposed by comparing each entitlement in an Enterprise Agreement against the underlying award.
Job Security
In a bid to encourage greater job security and permanent employment the Bill limits the use of fixed term contracts. The maximum duration for fixed term contracts along with operative provisions will be two consecutive contracts or a maximum duration of two years (inclusive of extensions), with exceptions for limited circumstances. Employers will also be required to provide employees with a ‘Fixed Term Information Statement.
To provide greater incentives to employers to agree to flexible working arrangements, amendments to the current provisions enable employees a wider range of circumstances to request flexible work arrangements. These include on the grounds of family and domestic violence, whether the perpetrator is an immediate family or household member or not. Employers will be required to provide employees with reasons for any decision to refuse a flexible work arrangement request and inform employees of alternative changes that the employer is willing to make to accommodate the employee.
Employees will also have the ability to dispute the refusal of a flexible work arrangement where they consider the refusal is unreasonable – with the FWC being empowered to resolve disputes regarding flexible work arrangements.
Gender pay equity and the prohibition on pay secrecy clauses
In an effort to achieve pay transparency and equity, the Bill introduces new prohibitions on pay secrecy meaning that employers can no longer include clauses in contracts of employment that prevent employees discussing pay. These new terms mean that employees are able to discuss and disclose their remuneration and employment conditions.
The Bill also has provisions to protect the right of employees to elect not to make a disclosure (including when asked by their co-workers) other employees.
What now?
Here at Purpose.People Solutions, we understand this is a lot to take in and our team of experts are available to help. Give us a call on 0437 870 773 or email us and we’ll help you.