The Fair Work Act is one of the main pieces of legislation that govern the employment relationship in most of Australia’s private workplaces. It prohibits certain unlawful action in relation to protection rights, such as adverse action, coercion, misrepresentation, and undue influence or pressure in negotiating individual agreements.
On 2 December 2022, the Federal Government’s Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 was passed in parliament. The key changes in this amendment covers a range of areas. In terms of employee contracts, the Act ensures that there is no secrecy over pay, limits the use of fixed term contracts and expands on multi-enterprise bargaining provisions. Therefore, as of 7 December 2022, pay secrecy clauses will have no effect and it will be illegal to include such clauses in future contracts. Additionally, as of 7 December 2023, it will be unlawful to offer fixed or maximum term contract for terms of two or more years unless an exception applies.
For employees, the new laws expand flexible working arrangements by adding to the numbers of grounds that an employee can rely on to request flexible work arrangements. Employers may face penalties if they refuse to genuinely try to reach an agreement with the employee to accommodate their circumstances.
The Act also helps to achieve greater equality as the Commission now has the power to make equal remuneration orders at its own initiative. Importantly, issues of discrimination and sexual harassment are being addressed as the Act now includes gender identity, intersex status and prohibits sexual harassment in connection with work, with the result that a person who experiences sexual harassment will be able to seek compensation and penalties through the Commission.
It is important for both employers and employees to make note of these changes in order to ensure the protection of rights and a fair workplace environment.
If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.