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The review of the Secure Jobs, Better Pay Act gave insight into some of the potential adaptations that may come about if the Albanese government is successful in the upcoming federal election.
Back in October 2024, Minister for Employment and Workplace Relations Murray Watt announced the review of the Secure Jobs, Better Pay Act. A review panel was tasked with analysing the appropriateness, effectiveness, and consequences (intended or otherwise) of the Fair Work Legislation Amendment.
The Secure Jobs Better Pay Act – which came into place back on 2 December 2022 as part of the Closing Loopholes legislation – works towards changing laws relevant to the Australian workplace, including changes to bargaining, agreement making, sexual harassment cases and registered organisations.
The review, conducted by Emeritus Professor Mark Bray and Professor Alison Preston, put forward a total of 19 draft recommendations. HR Leader recently spoke to Charles Power, a workplace relations and safety partner at Holding Redlich, about the review and the potential changes that could come from it.
“Generally, the review found the reforms were working in the manner intended. However, there were some interesting findings in certain areas that may flag the direction of future reforms,” Power said.
“The review found that the restrictions imposed on fixed-term contracts, designed to enhance job security, have led to complexities in the regulatory framework. The review panel recommends that the government reconsider existing limitations and introduce more practical exceptions to accommodate diverse industry needs.”
According to Power, despite the intent of the act, some businesses and sectors have faced challenges, with the well-known issue being the need to carefully construct and update employment agreements.
“While the intent was to reduce the prevalence of insecure employment, some sectors have faced challenges in implementation. Key issues include potential changes to the regulation of fixed-term contracts, meaning employment agreements may need to be structured carefully to meet updated legal standards,” Power said.
“The ongoing rollout of multi-employer bargaining could also lead to shifts in how collective bargaining works and the obligations of employers and employees.”
“The expanded scope of multi-enterprise bargaining has increased the number of employees covered by enterprise agreements. Early indicators suggest positive outcomes, with an increase in collective bargaining coverage and improvements in wages. However, the panel noted that it is too soon to fully assess the effectiveness of these provisions in reversing the decline in collective bargaining.”
The panel recommends ongoing monitoring and a subsequent review in two to three years to assess the long-term impacts of these provisions, indicating a likelihood of future reforms aimed at enhancing the effectiveness and fairness of the workplace relations system.
With the mass amount of workplace changes that have been introduced by the Albanese government through the Closing Loopholes legislation, Power believes that a successful federal election will lead to clear refinements of these laws with the limitations on fixed-term employment perhaps being “relaxed”.
“The significant changes to the Fair Work Act over the last two years have presented a challenge for business organisations and their managers in formulating strategies to manage industrial relations and human resources,” Power said.
“Given the importance that the current federal government places on these new laws, it is inevitable that further refinement of the legislation will take place after the next federal election.”
“If the current government is re-elected, businesses should expect that the limitations on fixed-term employment will be relaxed. If the changes to collective bargaining do not boost the coverage of enterprise agreements, changes to those laws will also be likely. Finally, the role of the FWC in supporting the early resolution of bargaining disputes is likely to be adjusted.”
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
