Following the Secure Jobs, Better Pay Amendment to the Fair Work Act which passed last year, both Houses of Parliament have now passed the next tranche of amendments to the Fair Work Act.
The Fair Work Legislation Amendment (Protecting Worker Entitlements Bill) 2023 (Entitlements Bill) was passed on 22 June 2023, after being introduced into Parliament on 29 March 2023 (see our previous article on this).
The changes came into effect on 1 July. This alert sets out some pointers to help employers respond to the changes.
Unpaid parental leave
What will change?
- Employees can take up to 100 days of flexible unpaid parental leave.
- Employees can commence unpaid parental leave at any time in the 24 months following the birth or placement of their child.
- Employee couples can take unpaid parental leave at the same time.
- Pregnant employees can access flexible unpaid parental leave in the 6 weeks prior to the expected birth of their child.
- Parents can request an extension to their period of unpaid parental leave regardless of the amount of leave the other parent has taken.
What should employers do? Employers should check their current workplace policies regarding leave and begin reviewing and updating parental leave arrangements to reflect the new laws.
Superannuation
What will change? A new entitlement to superannuation contributions will be inserted into the National Employment Standards, which guarantees superannuation as a right.
What should employers do? While employers already have a legislative obligation to pay the superannuation guarantee charge if they do not make contributions, the changes mean failing to make superannuation contributions will also attract a civil penalty and potentially other court orders (eg compensation). Employers should already be making their mandatory superannuation contributions to employees, but this is a timely reminder to ensure compliance, as well as the fact that the superannuation guarantee will increase to 11% from 1 July 2023.
Employee authorised deductions
What will change? Employees will be permitted to authorise employers to make regular and varying deductions from their pay.
What should employers do? Currently, employees need to provide employers with a new written authority on each occasion where an authorised deduction varies. This change eases the administrative burden. Employers should review their payroll deduction processes as only a single authority for agreements between the employee and employer for authorised deductions will be required.
Workplace determinations
What will change? When a workplace determination takes effect, the applicable enterprise agreement will no longer operate.
What should employers do? This is a technical change to clarify a common understanding which the Fair Work Act previously omitted (the Fair Work Commission has already applied this rule without the express rule).
Increased protection for migrant workers
What will change? A breach of the Migration Act 1958 (Cth) no longer affects the validity of a contract of employment or contract for services for the purposes of the Act. Temporary migrant workers are also entitled to workplace protections under the Fair Work Act.
What should employers do? Employers that employ or contract migrant workers should ensure that they comply with the Fair Work Act in relation to these workers in the same way they do for non-migrant workers (such as being cognisant of unfair dismissal laws, general protections rights, etc).
Coal mining long service leave
What will change? Technical amendments are being made to ensure casual employees working in the coal mining industry are treated no less favourably than permanent employees in relation to the accrual of, and access to, long service leave entitlements.
What should employers do? Employers in the coal mining industry should carefully review their long service leave processes to ensure they reflect the new method of calculating working hours for casual employees.
How can we help
If you want some advice or assistance with how your workplace can ensure compliance with the new Entitlements Bill, contact a member from our Workplace Relations, Employment and Safety team.
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