THIRD TRANCHE OF NEW IR LAWS: How are these likely to impact businesses?

Following the previous industrial relations reforms which have taken effect via the Secure Jobs Better Pay Act, the Federal Government has now introduced the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 which, if passed, will introduce a series of further reforms to Australia’s workplace relations and industrial laws.

As the name implies, the Closing Loopholes Bill ('the Bill') aims to 'close loopholes' in the Fair Work Act 2009 (Cth) with significant reforms to Australia's workplace health and safety laws.

The reforms in this Bill were developed following an extensive period of consultation with industrial relations law experts and a handful of key industry bodies. 

ACA's legal advisers - the Australian Business Lawyers & Advisors (ABLA) - worked closely with the Australian Chamber of Commerce and Industry (ACCI), Australian Business Industrial (ABI) and Business NSW as part of the consultation process, providing input to the Federal Government to ensure the impact of the reforms on business was understood and, where necessary, addressed.

Having worked so closely on the government consultation process, our colleagues at ABLA are in the unique position of being able to provide a well-informed overview of the reforms and share their insights on the impact these changes are likely to have on businesses, should the Bill be passed in its current form.

ABLA has published a three-part series explaining the reforms brought in by the Closing Loopholes Bill.

You can read ABLA's full analysis by clicking on each heading link for the relevant Part below.

Part 1 - Contracts: Casuals and Contractors

• The new definition of casual employment
• The new definition determining who is an employee
• The new ability for the FWC to set minimum standards applicable to ‘employee-like’ forms of work through a digital labour platform (ie, the ‘gig economy’)
• The new ability to challenge unfair contractual terms.

Part 2 - Pay and Union Reforms

• The so-called ‘Same Job, Same Pay’ amendments which will provide a new ability to apply for orders that would entitle labour-hire or service workers to the same pay rates as direct employees performing the same work for the same organisation under an enterprise agreement
• Criminalisation of wage theft
• New entry rights for unions and training payments for workplace delegates
• Bargaining changes including new powers of the FWC to issue model terms for enterprise agreements, amendments to allow parties to voluntarily replace a supported bargaining or a single interest agreement with a single enterprise agreement at any time
• Measures to address the impact of the small business redundancy exemption in winding up scenarios to support equitable outcomes for claimants under the Fair Entitlements Guarantee.

Part 3 - Road Transport

• The ability for the FWC to set minimum standards applicable to workers engaged in the Road Transport Industry (including so-called ‘owner drivers’)
• The introduction of collective agreements for road transport contractors (again, this applies primarily to owner-drivers)
• A new regulation making power for the Minister in relation to the 'Road Transport Contract Chain'
• The introduction of a new expert panel for the road transport industry and advisory body.

We hope you find this information helpful.

Please bear in mind that the above reforms are still being discussed in Parliament and will be voted on to become legislation next year. Should it be passed, there may be some changes to the Bill before it is passed through Parliament and becomes law.

The purpose of the above information is to keep you informed of the possible changes that may come into effect next year, along with the discussions around them within our sector.

​PUBLISHED: 14 SEPTEMBER 2023