There have been some significant changes to Fair Work laws that have the potential to affect your organisation’s policies and procedures as well as employment contracts with your staff. Any delays in implementing these changes could mean you are non-compliant and placing your organisation in a vulnerable position with the Fair Work Commission.
Fixed Term Contracts Restricted
Employees cannot be placed on a fixed term contract that lasts more than 2 years unless they fulfil exceptional criteria. In addition, you can only renew a fixed term contract once and in total, the term must remain under the 2 year cap. There are strict and limited exceptions to this rule and we suggest you contact us for tailored advice to suit your situation.
Changes you need to make
If you have any employees with fixed term contracts that exceed the limit, they may be entitled to claim permanent, ongoing employment.
When engaging an employee on a fixed term contract, you need to provide them with a Fixed Term Contract Information Statement and the Fair Work Information Statement.
Sunsetting All Zombie Workplace Agreements
Zombie Workplace Agreements are employment contracts that were entered into before the commencement of the Fair Work Act 2009. Therefore, the sunset provision is designed to terminate these old agreements.
You have 12 months’ grace to identify which employees have zombie workplace agreements and to negotiate new ones. There are exceptional situations where the 12 month time limit can be extended. But don’t rely on it.
Changes you need to make
Start by reviewing all your workplace agreements but really, this change is complicated so we strongly recommend you get in touch with us if you have any employees with employment agreements that commenced before 2009.
Managing staff and ensuring compliance are complicated!
These changes to the Fair Work Act are significant and need to be actioned now if you wish to remain compliant. Don’t delay. For help, get in touch with End2end Business Solutions – your friendly, practical and knowledgeable HR team.
If you would like to look up the changes for yourself, the legislation is called Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022.