What the proposed industrial relations changes really mean for South Australian businesses

On 27 October the Federal Labor Government introduced its Secure Jobs, Better Pay Bill to amend the Fair Work Act 2009. At 242 pages, the 27 item Bill is complex and covers a wide range of topics. While most of the changes in the Bill reflect the policies the Labor Party took to the Federal Election, the proposed multi-employer bargaining changes arose from the Jobs and Skills Summit earlier this year.

If passed, this will result in some of the most significant employment reforms in well over a decade. 

The Minister for Employment and Industrial Relations, the Hon Tony Burke MP, has stated that he would like this passed in parliament by 1 December 2022. As outlined last week in the South Australian Business Chamber’s press release, very little consultation has taken place and given its complexity this is not a realistic timeframe to give the Bill due consideration.

The South Australian Business Chamber, along with the broader Australian business community, is firmly pushing back against some of the proposed changes. It appears this may be having effect, as recent reports have indicated the Bill is likely to be amended. While we await the revisions, there are specific changes that businesses must prepare for now. 

So, what are the red flags for employers in this Bill? 

• There are restrictions on the use of rolling fixed-term contracts, which includes prohibiting fixed-term contracts for periods more than two years. 
• Employers will face the threat of forced conciliation and potentially arbitration if they refuse a request by an employee for more flexible work arrangements. 
• Employees can disclose their remuneration and ask other employees about their remuneration. Employment contract clauses preventing employees from talking about their wages will be prohibited and if in place will have no effect along with potential penalties of up to $63,000.

Perhaps the biggest red flag is the Bill’s new single interest employer stream within the multi-employer bargaining provisions. This part is currently worded in a way that a small South Australian business and their employees may be forced to operate and bargain under the same conditions as an unrelated business interstate that is dictating the terms of the agreement. 

Your membership with the South Australian Business Chamber has never been more relevant. The South Australian Business Chamber is monitoring the progress of this Bill and subsequent amendments as well as advocating strongly to represent your views. 

The South Australian Business Chamber’s team of skilled industrial relations experts are well equipped to assist employers with ensuring their employment contracts, industrial instruments and policies are compliant with these new IR reforms. The South Australian Business Chamber is a registered employer association and has automatic representation rights in the Fair Work Commission and is well placed to represent South Australian employers who find themselves before the Fair Work Commission. If you need help or information, call our Business Advice Hotline today on 8300 0000 (option 1).

For the latest information and what it means for your business, join our industrial relations and policy experts in our webinar The Good, the Bad and the Ugly: What the proposed Industrial Relations changes mean for South Australian businesses at 10.30 am, Friday 18 November 2022. The South Australian Business Chamber members can register here. 

Not a member? Not a problem, you can simply join up as a member of the South Australian Business Chamber to get access to this webinar and advice, plus more, call us today on 8300 0000 (select option 2) or join at busi​ness​-sa​.com/join