The newly introduced Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020 has been referred to the Senate Education and Employment Legislation Committee for inquiry and report by 12 March 2020.

Having been heavily involved in the Attorney-General’s IR Working Groups that informed the legislation, AREEA is now focused on preparing a comprehensive submission which will examine and respond to the five key areas of the industrial relations system discussed over the last few months.

The Bill seeks to legislate the following:

• Various improvements to enterprise agreement making processes and procedures, including changes to approval tests applied by the Fair Work Commission (e.g. the ‘Better Off Overall Test’) and a target for approval of enterprise agreements within 21 days of lodgment.
• Extending the maximum duration for greenfields agreements used in the construction of major resources, energy and infrastructure projects, from four years to a new maximum of eight years. Projects of $500 million or more in capital value will be automatically eligible.
• Inserting a new definition of casual employment in the Fair Work Act, while protecting employers from ‘double dipping’ back-pay claims through an offsetting mechanism.
• A new penalties regime for wage underpayments, including more severe civil penalties and criminal charges for the most serious cases.
• Simplification of industrial awards applicable to small business sectors, while extending JobKeeper-related flexibilities for highly distressed industries.

In a statement, AREEA Chief Executive Steve Knott AM said the improvements to enterprise bargaining, greenfields agreements and casual employment are of huge value to Australia’s resources and energy employers.

“Collectively these measures will reduce employment-related red tape and risk for resources and energy employers, which have been the lifeblood of the national economy and labour market during an extraordinarily difficult year for all Australians,” Mr Knott said.

Following the expedited parliamentary process, the Bill is expected to pass both houses early next year to take effect at around the time the JobKeeper wage subsidy scheme ends (28 March 2021).

Along with preparing a submission on behalf of the resources and energy industry, AREEA will execute a substantial advocacy plan to give the Bill the best chance of passing through the senate and into law.

This will involve ongoing engagement with the Senate Crossbench and the Australian Parliament more broadly, to ensure all members fully understand the benefits these reforms will have on the national economy and community.

AREEA’s submission will build on the advocacy and policy advice throughout the Australian Government’s IR working groups process.

AREEA is seeking input, examples, and anecdotes from members about how the proposed laws will address the inefficiencies of the current industrial relations system to achieve more productive workplaces and deliver improved employment outcomes.

Members with feedback or evidence of how the Bill’s passage will deliver productivity and employment outcomes in their business are encouraged to contact [email protected].

The closing date for submissions is 5 February 2021.