21 Dec 2023
Libby Pallot, Walter MacCallum, Anthony Massaro, Rima Newman, Ben Tallboys, Mandi Xu, Abbey Burns, Kelly Ralph, Ashleigh Warren, Morgan Smithe, Shi Jing Wong, Harrison Gray & Emily Tang
On 4 September 2023, the Labor Government introduced the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 into Parliament, proposing significant changes to workplace laws. Please see our previous article on the Bill.
The Senate opted to split the legislation into two bills following concerns voiced by Senators Jacqui Lambie and David Pocock, who highlighted the need to separate uncontroversial aspects of the bill - such as closing the loophole on protections against discrimination for employees subjected to family and domestic violence and streamlining process for emergency service workers to claim for PTSD - from the more contentious elements. Part 1 of the Bill was passed on 7 December 2023, and the second will be reviewed early next year.
The Senate passed the following key measures under Part 1 of the Bill:
- Protections for family and domestic violence victims from discrimination and adverse action;
- New powers for the Fair Work Commission to make ‘same job same pay’ orders for labour hire workers, preventing companies from underpaying labour hire workers;
- New workplace delegate rights and protections;
- Protecting redundancy payments for employees who work for large businesses that claim the small business redundancy exemption;
- Loosening of right of entry rules for officials assisting a State of Territory health and safety representative;
- Expanding the scope of Asbestos Safety and Eradication Agency to include silica;
- Expanding the scope of Work Health and Safety Act 2011 (Cth) to include the offence of industrial manslaughter;
- Easier workers’ compensation claims process for first responders who experience PTSD under the Safety, Rehabilitation and Compensation Act 1998; and
- Criminalising wage theft.
Part 1 of the Bill received Royal Assent on 14 December 2023, the various aspects of the Bill will come into effect at different points. The first 5 changes listed above commenced immediately from 15 December 2023, while the remaining changes will commence at a later date.
The remaining proposed changes in Part 2 of the Bill, such as the definition of casual employees and gig economy workers, will form part of a separate statute, and will be considered by Parliament in early 2024.
While the decision not to delay the introduction of uncontroversial elements in Part 1 of the Bill has been welcomed by some, the changes in Part 1 of the Bill will likely still have a significant impact on employers, specifically to those who engage labour hire workers. Any ‘same job same pay’ order will not come into effect until on or after 1 November 2024. However, labour hire companies could face applications for such orders from early next year.
How can we help
For advice regarding how the changes in Part 1 may affect your business, please contact a member from our Workplace Relations, Employment and Safety team.
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