The past several months have seen significant change in industrial relations, and the changes are set to continue throughout the year. We have reported on many of them – from bans on pay confidentiality clauses to a prohibition on the entry into fixed-term employment contracts in certain circumstances. Now it appears that the Federal Government will introduce further pieces of legislation in mid-2023 that will affect industrial relations. These provide for changes in:

• Superannuation Guarantee contributions;
• payroll deductions; and
• long service leave for casual employees in the black coal mining industry.

Superannuation Guarantee contributions

Legislation is proposed to introduce a new National Employment Standard requiring employers to make Superannuation Guarantee contributions as required by law. This will replicate the provisions that currently appear in modern awards creating this obligation. The effect will be a universal statutory entitlement of Australian employees to take action against their employer for non-payment of compulsory superannuation contributions. Currently, the remedy available for award- and agreement-free employees against defaulting employers is to pursue the matter through the Australian Taxation Office.

The legislation will also kick-start the review of superannuation default fund provisions in modern awards, which stalled through a defect in the legislation 10 years ago. This will allow the Fair Work Commission to review the superannuation funds named as default funds in modern awards.

Payroll deductions

It appears the Government intends to amend section 323 of the Fair Work Act 2009 (Cth) (FW Act) to allow deductions from wages and salaries for purposes authorised by the employee or law an easier process for workers and businesses. Currently, employees wishing to authorise the deduction must give a signed written authority specifying the amount to be deducted and meet certain other requirements.

Long service leave

Other changes will afford casual workers in the black coal mining industry the same access to long service leave entitlements as their permanent counterparts, clarify the application of FW Act protections to temporary migrant workers and provide stronger access to unpaid parental leave so families can share work and care responsibilities.

What’s next?

A second tranche of legislation is expected to be introduced later in 2023. This will:

• ensure employees who are on-hired by labour hire employers receive the same pay and conditions as their directly employed counterparts at the host employer;
• re-define casual workers to ensure the regularity of their employment is taken into account in characterising their status;
• give minimum pay and conditions for ‘employee-like’ workers in the gig economy;
• introduce laws criminalising ‘wage theft’;
• create a low-cost jurisdiction at the Fair Work Commission to deal with unfair contract disputes for independent contractors; and
• introduce safety principles and minimum standards for long-haul drivers.

Stay on top of your obligations

With the law changing so much, so quickly, now is the time to consider how you can ensure you are meeting your obligations as an employer. Subscribing to the Employment Law Practical Handbook is one way to make certain you get expert advice to keep on the right side of the law. Find out more here.