Earlier this week, the Australian Federal Government introduced the Fair Work Legislation (Protecting Worker Entitlements) Bill 2023 (Cth) into the Parliament of Australia. The proposed reforms aim to protect worker entitlements, including unpaid parental leave (UPL) entitlements and superannuation entitlements, and ensure that migrant workers are protected under the Fair Work Act 2009 (FW Act), regardless of their immigration status. These changes are of great significance as they will provide greater protections to employees across Australia.
Flexible Unpaid Parental Leave Entitlements
The proposed changes to UPL entitlements are intended to provide greater alignment with the Paid Parental Leave Act 2010 and provide employees with more flexibility as to how they utilize their entitlements. According to the proposed changes, UPL entitlements will become more flexible, allowing them to be taken in discontinuous periods over a period of 24 months. This will benefit working parents who need time to care for their child without affecting their job security or pay.
Removal of Concurrent Leave Concep
The Fair Work Legislation Bill 2023 proposes to remove the concept of “concurrent leave” and allow employees to take unpaid parental leave (UPL) at the same time without limitations. The removal of concurrent leave will offer more flexibility to employees, enabling them to take their parental leave entitlements simultaneously.
Superannuation Contributions Included as National Employment Standards
The bill will make superannuation contributions one of Australia’s National Employment Standards (NES), making it mandatory for employers to pay their employees superannuation contributions with their salary. This will ensure they receive the same level of benefits as their peers in the workforce who may be full-time, salaried, or permanent employees. The NES entitlement will only apply to the superannuation guarantee charge percentage, which is currently 10.5%.
Greater protections for migrant workers
One of the most significant changes proposed by the bill is the greater protection for migrant workers. The proposed changes aim to remove any doubt regarding the interaction between a workplace determination and an earlier enterprise agreement. According to the changes, it will be clear that a workplace determination will override an earlier enterprise agreement, thereby offering greater protection to migrant workers.
Interaction between Workplace Determination and Enterprise Agreements
The bill proposes to amend the FW Act to make the interaction between a workplace determination and an earlier enterprise agreement clear. This will provide clarity to workers and ensure that they receive fair compensation for their work, even in cases where an enterprise agreement has been established previously.
Expansion of Authorization for Lawful Deductions from Pay
The bill also proposes to expand the circumstances in which employees can authorize employers in writing to make lawful deductions from their pay. This will allow for more flexibility for employees, making it easier for them to recover lost funds or repay loans.
In conclusion, the Fair Work Legislation Bill 2023 (Cth) proposes significant changes that will protect worker entitlements, provide greater protections to migrant workers, offer more flexibility to employees, and ensure that all workers are treated fairly regardless of their immigration status. These changes are vital and will benefit not just employees, but also employers by helping the Australian workforce to thrive. It is hoped that this legislation will be passed in the Parliament of Australia and put into effect as soon as possible.
