Are you ready for upcoming employment law changes?

There are some major changes happening in the employment law space in 2023.

Not sure what they are? We’ve got you covered! This article summarises some of the significant upcoming employment and industrial relations changes. We’ve also provided you with some insight into proposed changes the federal government may make later this year.

Annual leave directions at Christmas closedown

The rules have changed around directing employees to take paid and unpaid leave at Christmas closedown. The rule changes effect those covered by modern awards, including the Building and Construction General On-site Award 2020. These changes took effect from 1 May 2023.

Under the new rules, any direction you provide employees to take annual leave at Christmas closedown must be reasonable and in writing. At this stage, it is unclear what would be considered a reasonable direction, but we don’t anticipate that a direction to take annual leave in line with industry practice (over late December and early January) would not meet the reasonable test.

Arguably, the most important change here relates to where employees don’t have sufficient annual leave accrual for the closedown period. There is no longer an ability to direct employees to take unpaid leave. Employers will now need to seek individual agreements with employees about taking either leave without pay or providing annual leave in advance. This agreement must be in writing.

Multi-enterprise bargaining

From 6 June 2023, multi-enterprise bargaining will become more expansive. While the building and construction industry will largely be carved out, multi-enterprise agreements may cover many allied industries including joinery, manufacturing, plumbing and electrical works.

If you receive any correspondence about a multi enterprise agreement, we recommend you contact us for assistance.

Superannuation increases

From 1 July 2023, superannuation contribution for employees will increase to 11%.

The increase has been legislated for some time and further increases are to come. Super increases are legislated from 1 July each year until the minimum super guarantee contribution reaches 12% in 2025.

Increases to minimum wages and allowances

From 1 July 2023, minimum wage rates and allowances are likely to increase. The changes will apply to employees covered by modern awards and be accordance with the Fair Work Commission’s Annual Wage Review.

If you have employees paid at minimum award rates of pay, it will be a good time to review your payroll to ensure that you are paying at least the minimum rate. MBV will publish updated wage bulletins for our industry’s awards before these increases take effect.

Limitations on fixed-term contracts

After 6 December 2023, a two-year limitation period will apply to fixed term contracts. These are employment contracts that have a set end date. You will not be able to have a fixed term contract that exceeds two years, or consecutive fixed term contracts that exceed two years.

There are exceptions to this new rule for employees with specialised skills and apprentices and trainees. Any employee engaged on a fixed term basis will need to be provided with a fixed term contract information sheet produced by the Fair Work Ombudsman.

Zombie agreements

Don’t fear, this isn’t the enterprise agreement apocalypse. However, any agreements made pre-2010 still applying to employees are deemed a ‘zombie agreement’ and will terminate after 6 December 2023.

If you have a pre-2010 instrument that still applies to employees, you are required to notify these employees that it will cease operation. No action is required if you have a pre-2010 instrument that has been replaced with a new enterprise agreement.

More changes to come!

The Federal Government has already flagged further changes that are likely to be made by the end of the year. These include same job, same pay requirements for labour hire and a new definition for casual employment. While the details of these changes are not yet known, it will be important to stay tuned to see how they could impact your business.

Please be aware this article contains general information and is not a substitute for professional advice.

If you’d like further information, please contact our EIR team on (03) 9411 4555.

Adrian Ziccone

MBV Employment and Industrial Relations Manager