By

Catherine Ngo

Content writer, presenter and podcaster

We saw the Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 coming into effect on 6 December 2022, which made significant changes to the Fair Work Act. 

A lot can indeed change in one year. The Act amends workplace relations laws relating to bargaining, job security, gender equality, compliance and enforcement, workplace conditions and protections, and workplace relations institutions.

“Australian workers now have access to a better workplace bargaining system that will help lift wages, improve job security, and close the gender pay gap,” said Employment and Workplace Relations Minister Tony Burke in a media release.

While the changes have been welcomed, the new legislation makes the workplace system more litigious and complex. 

Julian Arndt, director at Australian Business Lawyers & Advisors, provides industrial relations advice and advocacy for employers, and we asked him for his reflections.

“2023 is a big year because while the Secure Jobs Better Pay workplace reforms came into force in December 2022,  most of the amendments commenced throughout 2023, on top of the Closing Loopholes legislation being introduced.

“The year hasn’t finished yet, and already throughout December, we will have changes to the fixed term contracts regime and the deadline to ‘sunset’ Zombie Agreements. Then there is the enforcement of positive duty to prevent sexual harassment.”

It may seem overwhelming for business leaders and HR practitioners to digest all the changes. Julian advises businesses to understand which changes apply directly to their business and, importantly, “start from the basics”. 

“It’s an important time for membership organisations to be on top of the changes. There are a lot of changes, but not all of these changes will apply to everyone. For instance, changes in the bargaining system will only apply to some businesses. There are other changes that everyone needs to be across including the positive duty and the introduction of universal paid leave for family and domestic violence.

“While you don’t have to be a subject matter expert on industrial relations or employment law, having compliant policies and contracts is a bare minimum.”

When asked what the workplace landscape will look like for 2024, Julian says, “The Fair Work Commission is going to be busier, and the reforms have added more to its plate. 

“There are more claims that employees and unions can make now. It is more likely than ever that employers will find themselves being drawn into the world of ‘Fair Work’.”    

2023 is a big year with more changes around the corner, putting HR leaders on their toes, especially if the Closing Loopholes Bill is passed. However, Julian says businesses should remain optimistic.

“It will be another massive year in 2024, but try to be optimistic if you can. Some of the changes next year will be fundamental, hopefully with a longer lead time. 

“I think in 2025 and 2026, we will still be talking about the 2024 reforms. It will be a huge learning curve, especially as the Fair Work Commission begins to deliver its early decisions on these issues.” 

Key milestones of the Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022

7 December

  • Changing the Fair Work Act's objectives include promoting job security and gender equality
  • Prohibiting pay secrecy
  • New protected attributes under the Fair Work Act: breastfeeding, gender identity, intersex status
  • Sunsetting of ‘zombie’ agreements
  • Fair Work Commission has powers to correct errors in enterprise agreements.
  • Changes to how bargaining can be started through the Fair Work Commission
  • Updates to rules for agreements to allow the Fair Work Commission to terminate an agreement after its nominal expiry date

7 January 

  • Job advertisements cannot include pay rates that breach the Fair Work Act or a fair work instrument (such as an award or enterprise agreement) 

6 March

  • Prohibition of sexual harassment in the workplace
  • Creation of expert panels at the Fair Work Commission to focus on pay equity and the care and community sector 
  • Transfer of the Registered Organisations Commission’s functions to the Fair Work Commission 

6 June

  • Changes to agreement-making
  • Increased access to multi-employer bargaining through single-interest, supported, and cooperative bargaining
  • Changes to extending unpaid parental leave, including giving the Fair Work Commission the power to deal with disputes
  • More employees will be able to access flexible working arrangements

1 July

  • Small claims cap lifted to $100,000 for employees bringing underpayment claims

6 December

  • Limiting the length of fixed-term contracts, with the Fair Work Commission having powers to deal with disputes and a requirement to give a Fixed Term Contract Information Statement.

Catherine Ngo

Content writer, presenter and podcaster

Catherine is passionate about unravelling the latest news and insights to help HR managers, business owners, and employers.