Attorney General releases proposed Industrial Relations Reforms that will benefit the Australian economy

NATIONAL

In mid-2020 MGA’s CEO, Jos de Bruin and National Legal Counsel, Marie Brown, together with other industry Association leaders joined with representatives from the Unions to meet, discuss and hopefully overcome issues that are currently inhibiting employment growth and workforce flexibility.

This was an opportunity for MGA to provide increased work opportunities, bring clarity to many areas of uncertainty and enable laws to be made that will benefit employees and our members as employers.

It was hoped that by working together, there would be an opportunity to provide change where it is needed, increase job opportunities, and provide for employment growth in Australia.

The Attorney General and Minister for Industrial Relations, Mr Christian Porter, took the bold step of bringing unions and employers together to reach consensus on legislative reform measures. So that businesses would function more efficiently, and employees would have access to plentiful and secure jobs along with more hours of work.

It was hoped that the introduction of industrial legislation prior to Christmas 2020 and into early 2021 would restore our economy and provide protected workplaces.

In the final sitting weeks of parliament, leading up to Christmas, the Attorney General, Mr Christian Porter, introduced the Fair Work (supporting Australia’s Jobs and Economic Recovery) Bill of proposed amendments to the Federal Parliament.

These proposed amendments were a culmination of all the consultation and work that was done by MGA and otherIndustry Associations, and they include the following:

1. Casual employment

In the interests of providing secure employment, it will be a lawful requirement for employers to offer permanent employment to a casual employee who has worked regularly for 12 months. Apart from providing for the security of employment, it will also ensure that casuals will not be able to claim additional payment for sick leave and annual leave.

2. Part-time employment and flexibility

Employers will be able to offer additional hours of work to a part-time employee and will not be compelled to pay for the work at overtime rates.

3. The ‘better off overall test’

It is intended to simplify the ‘better off overall test’. To date, the so-called “boot test’ has caused many employers to shy away from making agreements because too many additional requirements were expected to meet the BOOT. It is intended that the test will be less demanding at least for the next two years to allow employers and employees to be less prescriptive about meeting this requirement.

4. Wage theft

It will become a criminal offence where an employer is found to have deliberately avoided paying the correct wages and any other entitlements to an employee. An employer could face up to $1.1 million in fines and imprisonment for up to 4 years. Underpayments of wages will still incur fines, but these have also been increased for up to $50,000.

Despite the well-intentioned objectives of the legislation, the proposed amendments have met with strong objections from the Federal Opposition and some trade unions. There are concerns that there will be financial losses for employees and although that is unlikely it will no doubt be the subject of considerable discussion before, or if, any amendments are made to the Fair Work Act.

The proposed amended legislation is now before a Senate review and MGA TMA and other organisations have made submissions on the contents of the proposed new laws.

Many of the proposed changes to the Fair Work Act would be beneficial to our Members to employ more staff and offer additional hours of work but no doubt there will be serious debate on these matters before any amendments are successful.

MGA will keep members informed of any further progress regarding this allimportant matter.