Upcoming workplace relations changes following the Jobs and Skills Summit

Background

The Federal Government in September hosted the Jobs and Skills Summit which brought together representatives from key sectors of business, unions and education to consider the challenges and opportunities facing the Australian economy and workplace relations.  

Outcomes from the Summit include the Federal Government confirming numerous immediate actions as well as future commitments which will undoubtedly change the workplace relations landscape. This article will highlight some of the key changes that are to be expected as well as proactive steps that businesses can take in preparation to ensure that they are best placed for maximising compliance and productivity.

1)     Increase in enterprise bargaining/industrial relation activity

With a new Federal Labor Government, we are expecting to see an increase in enterprise bargaining activity in the foreseeable future. A recent trend that already evident is the preference toward 3-year EBAs as opposed to 4 years which is in response to recent inflation and cost of living issues. This trend is likely to continue for some time as unions push for employees to receive appropriate wage outcomes.  

The Federal Government has committed to improving the enterprise bargaining process which will soon result in updates to the Fair Work Act through consulting with businesses and employee groups to understand how the system can be positively changed, particularly to enable smaller businesses with better access. The Summit also saw commitment to multi-employer bargaining, which allows two or more employers to bargain together. This will extend capacity for union-led bargaining across multiple sectors where there otherwise would have been separate enterprise agreements for each employer. No doubt, this will also see an increase in bargaining activity. 

It will also remain to be seen whether EBAs will be expedited through the process through initiatives as condensed Log of Claims as well as agreed Best Practice Employment Commitment Initiatives. These initiatives are designed to encourage Unions and business to agree on a number of joint initiatives early in bargaining. Examples include mental health concerns, gender equality as well as climate emergency contingency plans.

2)     Modes of employment

As many businesses have already seen, hybrid working combining in-office and remote working has become the new normal post-pandemic, allowing both employers and employees to reap the benefits of both modes of work. Again, the Federal Government will be pushing to amend the Fair Work Act to strengthen access to flexible working arrangements, particularly through entitlements to unpaid parental leave. This outcome from the Summit demonstrates the changing contemporary nature in parental, caregiving and household roles and will allow families to appropriately share work and caring responsibilities.

Businesses should take steps now to review and assess their internal policies that relate to flexible working arrangements and parental leave to ensure they are compliant.

3)     Sexual harassment

Following the 2020 Respect@Work: Sexual Harassment National Inquiry Report, the Federal Government has committed to implementing the report’s recommendations. The focal point of these implementations is that regulators will be able to take action against businesses and individuals before a sexual harassment incident or risk actually occurs. The Fair Work Commission will also be enabled to resolve disputes relating to workplace sexual harassment, demonstrating the stricter standards of workplace behaviour in 2022 and into the future. 

Therefore, businesses should be already taking steps to manage risks through review and control, otherwise they could be open to investigation and even prosecution.

4)     Occupational health and safety

Of course, the duty to protect physical wellbeing in the workplace is nothing new, however the need to protect mental wellbeing from an occupational health and safety perspective is becoming more prevalent. Outcomes from the Summit aim to constructively address issues such as safety, productivity and mental health.

In line with this, the Mental Health and Wellbeing Act 2022 has passed the Victorian Parliament and will introduce the highest possible standard of mental health and wellbeing for Victorians. These standards will translate into workplaces in some form, meaning employers should ensure that they continue to build and sustain a mentally healthy workplace.

Where to from here?

These upcoming changes and commitments are just some that have come out of the Summit, with many more released in the Outcomes Paper. A White Paper will be released soon which will provide further information on the Albanese Government’s planned policy changes and legislative reforms.

Many changes are flagged by the end of the year which means businesses should be mindful of the following:

• Gather and review your internal documents e.g. employment agreements, policies, enterprise bargaining agreements

• Ensure you have adequate knowledge of your legal requirements owed to your workers, common industry practices/standards and what is important to your workers relating to things like leave entitlements, wages, flexibility etc.

• Formulate how you will communicate and consult with employees about changes to legislation and policies.

If you need advice for your business about how to practically prepare for and implement the upcoming workplace changes then please contact:  

Jim Babalis
Special Counsel
T 03 5225 5205
E jbabalis@ha.legal

Jim Rutherford
Principal Lawyer
T 03 5226 8579
E: jrutherford@ha.legal

Matthew Synoradzki
Graduate Lawyer
T 03 5226 8542
E msynoradzki@ha.legal