Under changes to the Fair Work Act 2009 (Cth) (Act) (which were part of the Closing Loopholes amendments) enterprise agreements voted on by employees on or after 1 July 2024 must include a term regarding workplace delegates’ rights. Where no term is included, the term in the applicable modern award will apply.
In this article, we explain what employers need to do to comply with the changes.
A workplace delegate is a person who is elected or appointed to represent union members in their workplace.
Last Friday (28 June 2024), a Full Bench of the Fair Work Commission finalised the “Modern Award delegates’ rights clause” for inclusion in all modern awards.
Under this clause, if requested by the employer, in order to be recognised as a workplace delegate, the delegate must give the employer a written notice with evidence that would satisfy a reasonable person of their appointment as the delegate. Once recognised, the delegate can represent the industrial interests of eligible employees who wish to be represented by the delegate. This includes in relation to consultation about major change, changes to rosters or hours of work, resolution of disputes, disciplinary processes, enterprise bargaining, and processes or procedures under an award, enterprise agreement or policy where an eligible employee is entitled to representation of their industrial interests.
The clause confers specific rights on the workplace delegate including:
In exercising any of the above rights, the delegate must comply with their duties and obligations as an employee, the reasonable policies and procedures of the employer, and not hinder, obstruct or prevent the normal performance of work or employees from exercising their rights to freedom of association.
These provisions commenced on 1 July. As a result, any enterprise agreement that is voted on by employees from1 July will either need to have its own workplace delegates term that is the same as or more beneficial than the workplace delegates term in an otherwise applicable award, or the workplace delegates term from the award will apply. Awards that have more favourable entitlements for workplace delegates than the model term, will have those entitlements preserved.
Unless an existing enterprise agreement incorporates the underlying Award, employers will not need to comply with the new award workplace delegates’ clause. However, if that enterprise agreement is replaced or terminated, the applicable workplace delegates clause will need to be considered. However, if the enterprise agreement is replaced or terminated, the applicable workplace delegates clause will need to be considered.
For employers who will need to comply with these provisions (either as a term of the applicable award or an enterprise agreement that is shortly to be voted on by employees) it will be necessary to consider what steps need to be taken to comply with the requirements on receiving notice of appointment of a workplace delegate. Under the Act, employers must not:
In addition, from 1 July 2024 the following monetary changes will have effect.
Superannuation
High Income Threshold and Compensation Limit
Tax-Free Part of Genuine Redundancy Payments
Modern Award Minimum Wage
National Minimum Wage
Employers should ensure their payroll process and employment contracts are updated to reflect these changes where applicable.
For any questions about how to comply with the changes, please contact Luci Mummé, Ruveni Kelleher or Jan Dransfield.
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