Industrial Relations Changes

Industrial relations laws changed in December 2022

Is your business compliant with the new laws?

The South Australian Business Chamber

“The new changes to industrial relations are significant and will change the rights of those people running Australian businesses. It is vital that business owners and operators understand their new obligations,”

Andrew Kay , CEO, the South Australian Business Chamber

Federal bill a threat to South Australian business

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 — the most significant industrial relations change in nearly 20 years – has passed through Federal Parliament after a mere 5 weeks after being introduced to parliament with no prior consultation. 

This is a disappointing outcome. We, along with many other business representatives, have expressed that this Bill was never fit for passage and should not have been rushed through. It will negatively impact business and economic growth in South Australia. 

At a time when businesses are already significantly burdened with escalating energy prices, rising inflation and interest rates, they will now be forced into lengthy and complex negotiations and may face industrial action. 

The new changes to industrial relations are significant and will change the rights of those people running Australian businesses. It is vital that business owners and operators understand their new obligations.

Changes to pay secrecy laws, flexible work arrangements, and multi-employer bargaining agreements that are contained in the new laws, are of great concern for business. Australian businesses will lose their competitiveness and flexibility, and in turn, their appeal to potential investors. Rather than securing jobs, these changes will place jobs at risk.

Given the complexity of this legislation, there are many unknowns. What we do know is that there is nothing to show that the new laws will lead to productivity improvements, that are the key to delivering sustainable improvements in wages. 

We have seen no evidence to show how this legislation will lead to increased wages in the short term as promised by the government and unions. We do know it will significantly increase costs for business, resulting in more time spent in arbitration and reduce productivity.

Having a membership with the South Australian Business Chamber has never been so important. For members in Start-Up categories and above, you have unlimited access to the Business Advice Hotline which offers industrial relations advice. For more complicated matters, member rates are available for one-on-one consulting services. Call 08 8300 0000

We are most concerned about

Pay Secrecy

  • Employees can disclose their pay and ask others to disclose theirs.
  • Any clauses that prohibit disclosure will no longer be enforceable.
  • Every South Australian employer will be impacted by this change.

More information about new Pay Secrecy provisions

The Impact

You can no longer require your employees to keep their pay confidential.

• You will not be able to include confidentiality provisions in any other employment documentation (ie. Contract, Enterprise Agreement and/or Policy and Procedure).

• Your employees may feel pressured to disclose what they are paid when asked by

their colleagues and/or Union representative.

• Employers may be faced with demands from staff and/or Unions for pay increases.

• If you try to enforce pay secrecy in your workplace you may be faced with serious financial penalties under the Fair Work Act.

What business needs to do

• Immediately cease requiring your employees to keep their pay confidential.

• Review your employment documentation and identify other forms of employee confidentiality to be retained.

• Advise and support your employees so they understand they do not have to share details about their pay when asked.

• Understand your rights as an employer when faced with requests for pay rises from employees.

How we can help

Our team of industrial relations experts can:

• Review and amend your employment documentation.

• Work with you to develop a consultation plan for educating your employees.

• Assist you with managing requests for pay rises from employees arising from this new provision.

• Represent your business in dealing with employee disputes.

Your membership with the South Australian Business Chamber has never been so important. For members in Start-Up categories and above, you have unlimited access to the Business Advice Hotline which offers industrial relations advice. For more complicated matters, member rates are available for one-on-one consulting services.

Flexible Work

  • Some employees* who have worked for the same employer for more than 12 months can currently request flexible work arrangements.
  • This will be extended to enable the employee to challenge any refusal by filing a dispute within the Fair Work Commission.
  • Every South Australian employer will be impacted by this change.

More information about new Flexible Work provisions

The Impact

• A request for flexible work arrangement can include hours of work, patterns of work or locations of work.

• You are required to discuss the request with your employee and genuinely seek to reach agreement.

• If you refuse and your employee is not happy, they can file a dispute in the Fair Work Commission and the Commission may arbitrate an outcome or make a decision.

What business needs to do

• You need to understand on what basis you can refuse a request for flexible work arrangements.

• You have 21 days to provide a written response to a request for a flexible work arrangement.

• Clearly communicate your reasons for refusal in your written response.

• Respond to any notifications from the Fair Work Commission in the required timeframe.

How we can help

Our team of industrial relations experts can:

• Assist you with consulting with employees about the changes to flexible work arrangements.

• Draft responses to flexible working requests from your employees.

• Represent your business in the Fair Work Commission.

Your membership with the South Australian Business Chamber has never been so important. For members in Start-Up categories and above, you have unlimited access to the Business Advice Hotline which offers industrial relations advice. For more complicated matters, member rates are available for one-on-one consulting services.

Agreements

  • Employers may be forced to make an Enterprise Agreement with their own employees or become as part of a multi-employer agreement.
  • Bargaining processes for all Agreements have changed.
  • There are three streams of multi-employer bargaining, single-interest stream, supported stream and cooperative stream, each stream has been amended or extended.
  • Be aware that there are also changes coming to the termination process of Agreements and the Better Off Overall Test.

More information about new Agreement provisions

The Impact

• Under the multi-employer bargaining streams an employer will be required to bargain in conjunction with other employers – even if they don’t want to.

• If there is no reasonable prospect of agreement, the Fair Work Commission may arbitrate potentially resulting in an outcome that is not suited to either party.

• Employees can take protected industrial action in most cases.

• Employers may be pulled into costly and
lengthy proceedings in the Fair Work
Commission.

What business needs to do

• Employers should have a strategy about Agreements.

• Employers must respond to bargaining requests.

• Employers should review their current Enterprise Agreement.

How we can help

Our team of industrial relations experts can:

• Advise you on Agreement strategies.

• Draft required documentation, correspondence and Agreements.

• Negotiate on your behalf and represent you in the Fair Work Commission on all aspects of Agreements.

Your membership with the South Australian Business Chamber has never been so important. For members in Start-Up categories and above, you have unlimited access to the Business Advice Hotline which offers industrial relations advice. For more complicated matters, member rates are available for one-on-one consulting services.

2 Mar 2023 | South Australian Business News
Supporting women in business - New gender pay equity and discrimination laws
7 Feb 2023 | South Australian Business News
Wesfarmers woes with wage payments
18 Jan 2023 | South Australian Business News
Don’t risk a costly payroll underpayment claim
2 Dec 2022 | Media release
New laws will not deliver secure jobs or better pay
30 Nov 2022 | South Australian Business News
Operational struggles to come from Flexible Work changes
22 Nov 2022 | South Australian Business News
Your ability to enforce pay secrecy clauses is about to become ancient history
Ask the experts

Grace Forgione

Workplace Advisor

Lucinda Reu

Workplace Advisor
Got a question?
Give us a call
The South Australian Business Chamber

Need IR advice?

Submit the enquiry form below and one of our staff will get back in touch with you.

Name