Fair Work Changes: What employers need to know

Recent changes have been made to the Fair Work legislation, which business owners with employees should be familiar with.

We have provided a summary of these updates below. However, if you need to address any of these areas, we strongly recommend discussing them with your HR advisors. It is essential to understand the necessary steps before implementing any changes.

Small claims cap has increased from $20,000 to $100,000 for claims of underpayment of wages.

This change will come into effect on July 1, 2023, and may potentially lead to an influx of employee claims.

There are several complex modern awards that require careful comprehension, and it takes time to grasp their intricacies. As a business owner, it is important not to assume that your payroll/bookkeeper is fully knowledgeable in this area. Take the necessary steps to understand the awards that impact your business. Engage in discussions with your payroll and HR team to consider conducting a thorough review of wages and entitlements, ensuring accurate payment to your employees.

If an employee raises a query, it should be treated seriously. Employees are encouraged to familiarize themselves with their entitlements and the wages owed to them. In some cases, they may possess a better understanding than small business owners.

If you have people on fixed-term contracts exceeding two years, new rules come into effect December 2023.

These amendments aim to safeguard contracted employees and will restrict the ease of terminating their employment once the new rules are implemented. Starting from December, these employees will be entitled to termination processes similar to those of permanent employees.

If you employ fixed-term contractors, it is crucial to review and evaluate whether these contracts will continue in the future. Reflect on the reasons behind having fixed contracts and determine if they are necessary in all situations. Taking the time to assess their relevance will help ensure compliance with the updated regulations.

From June 2023, the amendments to flexible working take place.

Employees who meet any of the following criteria will have increased opportunities to challenge employers' rejections of their requests for flexible work arrangements:

Over 55
Living with a disability
Caring for infants or school-aged children
Experiencing family and domestic violence
Pregnancy

The amendments will come into effect in June. As an employer, you still have the ability to refuse flexible work requests on reasonable business grounds. However, it is crucial to establish a well-defined process for handling such requests and refusals.

This process should demonstrate that you have thoroughly assessed the situation. If a request is denied, you should be able to provide a reasonable explanation based on the business needs or requirements that influenced the decision.

Flexible work arrangements are becoming increasingly important, and businesses that are unwilling to embrace them or fail to work towards creating alternative arrangements may struggle to attract and retain talented individuals.

Here's a valuable tip to ensure your team members remain engaged and satisfied with the process: Instead of simply rejecting a request, collaborate with the employee and the team to explore possible alternatives. By doing so, you may be able to reach a compromise that benefits everyone involved.

Remember, effective communication is key! If you are still unfamiliar with your obligations surrounding around flexibility, you can review the information from Fair Work here.

(A quick reminder for those who have existing flexible work policies and processes in place – make sure you respond to any request for flexible working within 21 days and update your procedures to reflect this timeline).

Have you reviewed your policies and training around sexual harassment and bullying recently?

The recent amendments to the legislation, known as the Respect at Work Amendment Act, introduce new definitions, broaden the jurisdiction of the Fair Work Commission, and provide clarity on sexual harassment and dismissal.

It is essential for every employer to maintain a zero-tolerance approach towards any form of harassment and bullying, and to have updated policies in place. Taking responsibility for regular training sessions and promptly addressing any inappropriate behaviour is crucial.

If you are encountering challenges related to conduct and behaviour within your business, it may be appropriate to consider implementing group training, providing individual counselling, and distributing your policies for employees to review and acknowledge by signing.

As a leader in your organization, it is also an opportune moment to engage in self-reflection regarding your own behaviour and ensure that you are setting a positive example. Is it possible that you need to assess your own conduct? Are there instances where you may be disregarding certain behaviours, even minor ones, that team members or customers could perceive as unacceptable, inappropriate, or uncomfortable?

Final thoughts

It’s important you understand these updates and make the appropriate changes to your business if necessary. Remember to reach out to your HR team and/or advisors to ensure you are across them. Take the time to review the changes made by fair work here.

We're here to help.

If you don’t know where to start with one or more of these changes, touch base with our team for assistance.

Fair Work Changes: What employers need to know