Fair Work Act Amendments
Originally introduced to Parliament on 27 February 2014, the Fair Work Amendment Act 2015 (the Amending Act) came into effect on 27 November 2015 in a somewhat 'diluted' form to the original Bill proposed by the then Minister for Employment, Eric Abetz.
The following table summarises the main amendments as passed.
Subject
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Amendments
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Greenfield Agreements
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When negotiating greenfield agreements, a union is a bargaining representative only if it is entitled to represent the interests of one or more employees covered by the proposed agreement and the employer has agreed to bargain with the union. This means an employer may potentially choose to negotiate with only one union in relation to coverage and not others.
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Good faith bargaining rules will now also apply to greenfield agreements.
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The Bill introduces a 6 month 'notified negotiation period' for proposed greenfield agreements commencing from a date specified in the notified negotiation period's written notice.
This allows employers, where an agreement has been unable to be reached and the notified negotiation period lapsed, to apply to the Fair Work Commission to have the proposed agreement approved.
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A additional approval requirement will also need to be satisfied by the Fair Work Commission in approving greenfield agreements to ensure the proposed agreement, overall, provides for pay and conditions consistent with prevailing industry standards for equivalent work.
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Protected action ballot orders
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The right to take protected industrial action will become conditional on bargaining for a proposed enterprise agreement having commenced. The practical effect of this clause is that unions will need to obtain a majority support determination indicating the majority of employees (not just union members) want an enterprise agreement. This clause has been introduced in response to 'strike now, talk later' strategies to force employers to agree to bargain
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Extension of unpaid parental leave
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Employers will be required to provide employees with a reasonable opportunity to discuss any request to extend unpaid parental leave, before refusing it. The prior obligation that an employer may only refuse a request for an extension to unpaid parental leave on reasonable business grounds still applies.
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Aspects cut from the Amending Act have been reintroduced into Parliament by the Government in a subsequent bill - Fair Work Amendment (Remaining 2014 Measures) Bill 2015. This includes proposed amendments in relation to:
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individual flexibility arrangements and flexibility terms under awards and enterprise agreements;
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payment of annual leave on termination;
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accruing and taking annual leave while on workers compensation;
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transfer of business; and
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the right of entry framework.
If you would like to know more about the amendments or their impact on your business, please contact National Workplace Lawyers on +61 2 9233 3989.
National Workplace Lawyers
Note — this is for information purposes only and does not purport to be comprehensive or to render legal advice.
5 February 2016
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