UPDATED June 2024

We have put together a selection of key changes and activities over the coming year. Although not a comprehensive schedule, we will keep this updated throughout 2024.

Late 2023

2023 saw some significant changes across the Australian industrial relations landscape. This section contains some of the key changes which followed the mid-year Secure Jobs Better Pay reforms are now in force.

Fixed Term Employment

Starting 7 December 2023, fixed-term employment is limited to a maximum of two years - where there is a single contract of employment or multiple contracts for the same or a similar position.

Employers should review the tenure of fixed-term employees and consider the new limitations whenever renewing a fixed-term employee. Employers should also update their contracts of employment to ensure these meet the new requirements.

Recurring Deductions from Pay

From 30 December 2023, certain recurring deductions will be permitted, despite that the amount of the deduction may vary.

However, it is best practice to assume that each deduction must be authorised. Employers are generally unable to rely on things like contractual terms or workplace policies as a basis for single or recurring deductions.

Migrant Worker Laws

New laws now reinforce that foreign and migrant workers maintain their industrial entitlements, even after breaching their visa or in cases where they lack work rights or the right to be in Australia.

January - March 2024

This section contains a selection of the key changes effective in the first quarter of 2024.

Stricter Civil Penalties for Underpayments

The first of the two pieces of Closing the Loopholes legislation introduced stricter civil penalties and criminal penalties for underpayments and related wage compliance breaches. The stricter civil penalties are effective from 1 January 2024, targeting those who knew or were particularly negligent about the underpayment. Maximum penalties for companies now sit and the greater of three times the underpayment or $7.825 million - or $7.825 million where the underpayment cannot be quantified.

FRANCHISORS and FRANCHISEES ACCESS SINGLE ENTERPRISE AGREEMENTS

One or more franchisees of the same franchisor or related entities of the franchisor can access the single enterprise agreement stream, meaning they can bargain for an agreement together when engaged in similar business activities under the franchisor. Previously, franchisees and related bodies corporate needed to bargain separately.

Superannuation in the NES

The National Employment Standards now include the right to superannuation pay and introduce new rules relating to the payment of super based on ordinary hours of work.

Fair Work Commission Consultations

The Fair Work Commission will hold consultations throughout January in relation to the Modern Awards Review 2023-24 under s 157 and s 576 (2) (aa) of the Fair Work Act 2009 (Cth).

Update (7/2/2024)

Consultations relating to the job security component of the modern awards review have been delayed and will now commence on 27 February 2024.

April - June 2024

New Modern Award Terms

The Fair Work Commission will be introducing terms relating to Union Delegates’ Rights and the Right to Disconnect into all modern awards, aiming for the inclusion of these terms in all modern awards by 30 June 2024.

New Criteria for Model Terms in Enterprise Agreements

The Fair Work Commission is likely to release new model terms which reflect the updated criteria it must apply when creating the content of the model consultation, flexibility and dispute terms.

New Enterprise Agreement Content

Enterprise Agreements made after 1 July 2024 should contain updated model terms. They will also need to include terms dealing with the Right to Disconnect and Union Delegate Rights, having regard to the terms in the relevant underpinning modern award.

Minimum and Modern Award Wage Decision

The Fair Work Commission will announce its minimum and modern award wage decision in June.

July - September 2024

Some of the key changes effective this quarter include:

Increases to Minimum and Modern Award Rates

The new rates generally apply from the first pay period after 1 July but it is important to check the Fair Work Commission decision carefully in case it deviates from this practice. Enterprise Agreements contain their own mechanism for adjusting wages which may or may not be linked with the minimum and modern award increases.

New Parental Leave Entitlements

These changes will allow new parents to take up to 100 days’ unpaid parental leave at any time throughout the two years after the birth or placement of their child.
Visit the Services Australia website for more information on the changes.

Modern Award Terms COVERING Union Delegates' Rights AND THE RIGHT TO DISCONNECT

Terms relating to union delegates' rights will be added to modern awards by 1 July. Terms dealing with the right to disconnect will be added to modern awards by 26 August 2024.

Union Delegates' Rights Terms in Enterprise Agreements

Enterprise Agreements approved in a ballot closing on 1 July or later must include a union delegates' rights term which is at least as beneficial as the term contained in the relevant modern award(s).

RIGHT TO DISCONNECT

The new right to disconnect commences on 26 August 2024 (but 26 August 2025 for small business employers).

October - December 2024

Key changes this quarter include:

Regulated Labour Hire Arrangement Orders

RLHA orders may come into operation from 1 November. They will allow unions, employees, or host employers to apply to the Fair Work Commission to obtain an order that labour hire employees must be paid at least what they would receive under a host's enterprise agreement (or public sector determination).

2025

Criminal Wage Theft Offences

The most serious forms of wage theft may constitute criminal offences nationally starting from 1 January 2025.

Closing the Loopholes No 2 Provisions Effective for Small Businesses

The provisions delayed until 12 months after the July commencement of the bulk of the legislation will come into effect for small businesses.

Australian Federal Election

The election must be held on or before 27 September 2025.

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