Workplace Relations and Safety Minister Brooke van Velden has today announced the introduction of the Employment Relations Amendment Bill (Bill) to Parliament.
Ms van Velden says the Bill aims to increase labour market flexibility, reduce compliance burdens, and enhance business confidence.
Key change proposed by the Bill for you to be aware of:
- Clearer distinction between employment and contracting: The Bill introduces a “gateway test” to provide greater certainty for businesses and workers around the distinction between employment and contracting arrangements.
- No remedies for employees where there is serious misconduct: Even if a personal grievance is established, employees engaged in serious misconduct will be ineligible for any remedies such as reinstatement and compensation for hurt and humiliation.
- Income threshold for personal grievance claims: Employees earning over $180,000 per annum will not be able to pursue a personal grievance for unjustified dismissal.
- Removal of the 30-day rule: The current 30-day rule requires that if a collective employment agreement (CEA) covers the work of a new employee, their initial individual employment agreement (IEA) must reflect the terms of the CEA for the first 30 days of their employment, even if they are not a union member.
Removal of this rule would mean employers and employees will be free to negotiate terms and conditions immediately from the start of employment, rather than waiting until after 30-days.
The public and interested groups will have a chance to submit feedback on the Bill when it reaches the Select Committee stage.
If you have any questions about how these changes may affect you or your business, please contact a member of our employment team.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
