The Secure Jobs, Better Pay Act 2022

Understanding the Secure Jobs, Better Pay Act 2022

The amendments to the Fair Work Act 2009, packaged up as the Secure Jobs, Better Pay Bill, are the most significant changes to industrial relations reform since the introduction of the Fair Work Act. The Act amends workplace relations laws around bargaining, job security, gender equality, compliance and enforcement, and workplace conditions and protections.

While some have hailed the Bill as a powerful vehicle to hasten wage growth and incite both greater flexibility and equality in the workplace, others are less certain, extending considerable caution to what is considered a complex alteration to the current system.

We dived into the details to give you our key takeaways from the Secure Jobs, Better Pay Act 2022, so you can feel more confident in your compliance as an employer.

Flexibility

• Greater flexibility around working hours, enabling employees the right to negotiate hours that suit them
• Preventing employers from refusing reasonable requests from staff needing to balance external responsibilities, including parenting and caring duties
• Opening avenues to arbitration with the Fair Work Commission should a request be unresolved.

Remuneration

• Removal of pay secrecy clauses from contracts enabling employees to discuss the details of their pay and the conditions attached at their choosing; for example, with other employees.

Enterprise Bargaining

The most controversial change is moving large comparable employer groups towards enterprise bargaining coverage by enabling groups of employers to join forces in determining multi-enterprise agreements with their employees.

Three new streams for multi-enterprise bargaining under the Secure Jobs, Better Pay Act 2022:

1. Single Interest Employer Agreements allow the Fair Work Commission to authorise workers with sufficient “common interests” to bargain together.

1. Supported Bargaining Agreements replace the existing low-paid bargaining stream intended to assist employees in low-paying industries. The amendments aim to reduce the barriers for employees and their employers to access the enhanced support available from the Fair Work Commission throughout a bargaining process.

1. The Cooperative Workplaces Stream, formerly known as the multi-enterprise bargaining stream, is available for businesses of all sizes, with a focus on helping small businesses access the benefits of bargaining by pooling resources with other similar businesses, resulting in greater efficiency and economies of scale.

Changes to the BOOT (Better Off Overall Test) include:

• Removal of requirement to consider prospective employees
• Facilitating the BOOT as a global assessment and not line by line
• Rather than providing an undertaking, a BOOT issue may be resolved by amending the agreement instead
• Currently no limit set on the amount of times an agreement can be amended

The amendments provide employers with greater certainty about how the BOOT is applied, while ensuring that employees are protected by appropriate safeguards and will not be worse off.

Fixed-Term Contracts

Reducing fixed-term contracts to 2-year time limits or two consecutive contracts, whichever is shorter with certain conditions required.

Sexual Harassment

This change helps the government keep their promise to put into action all 55 suggestions from the Respect@Work report. It compliments other laws to stop discrimination in the workplace and it protects workers, prospective workers and persons conducting or undertaking a business from sexual harassment.

Anti-Discrimination

Aligning the Fair Work Act with references to anti-discrimination legislation, including 3 attributes, which now form part of the general protection framework (e.g. breastfeeding, gender identity and intersex status).

Changes in the Secure Jobs, Better Pay Act Means Businesses Need to Take Action

These changes have significant impacts for businesses moving forward, generating a trigger for employers to review their current practices and employment contracts and ensure they’re in line.

While the Secure Jobs, Better Pay Act has brought about an extensive list of amendments, we must also remain aware of the second tranche of amendments likely to drop throughout this year.

What Employers Should Do to Comply With the Secure Jobs, Better Pay Act 2022

While some of the changes are already in effect, timeframes for implementing the remaining requirements are staggered over 2023. Employers need to be vigilant during this time to ensure they remain compliant. Here’s a timeline of some of the key amendments.

• 7 December 2022, employees have a new workplace right to share or not share information about their pay, employment terms and conditions needed to work out their pay

• 7 January 2023, job advertisements cannot be published if they include pay rates which are inconsistent with the Fair Work Act or a Fair Work Instrument (e.g. Modern Award)

• 6 June 2023, more employees can request flexible working arrangements, including a right to request flexible working arrangements applying to those employees or members of their family experience domestic violence and employees who are pregnant

• 7 June 2023, pay secrecy terms inconsistent with the new workplace rights regarding pay information cannot be included in employment contracts entered post December 7

• 6 December 2023, employers can no longer enter into fixed term contracts with an employee where certain conditions exist. In circumstances where a fixed term contract is still applicable, employers will need to provide the employee with a Fixed Term Contract Information Statement.

Read Our Checklist for Employers to Comply With the Secure Jobs, Better Pay Act 2022

1. Read through commentary regarding the changes and take note of areas relevant to your business or industry.

1. Take stock of your current employment procedures, and have a careful read of your employment contracts. It’s likely these will require new amendments to reflect the new laws. For example, consider things like pay secrecy clauses, fixed term contract limits and workplace flexibility arrangements.

1. Ask for help! Get in touch with your legal advisor or reach out to BlueRock for a chat. We’re here to help you digest the changes in a meaningful way so you can get back to growing your Business.

Talk to our Employment Law Team About the Secure Jobs, Better Pay Act 2022

The Secure Jobs, Better Pay Act 2022 is shaking things up with new rules on flexibility, pay transparency, enterprise bargaining and more. But don't stress, our team of employment lawyers are here to help you navigate the new laws and make sure your business stays on the right side of compliance. So don't be a legal laggard; give us a shout and stay ahead of the game.