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Fair Work Act changes: Protecting Worker Entitlements

On 22 June 2023, the Australian Government passed the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023. The legislation introduces changes to the Fair Work Act, with the changes having different start dates.

Changes to unpaid parental leave – effective from 1 July 2023
The Fair Work Act now includes greater flexibility for employees taking unpaid parental leave. Employees taking unpaid parental leave will be able to take up to 100 days of their 12 month leave entitlement flexibly during the 24 month period after the birth or placement of their child. This is an increase from the previous 30 day entitlement. Pregnant employees will also be able to access their flexible unpaid parental leave up to 6 weeks before the expected date of birth of their child. Employees will no longer be prevented from taking more than 8 weeks of unpaid parental leave at the same time as their spouse or de facto partner (known as concurrent leave).

Interaction between enterprise agreements and workplace determinations – effective from 1 July 2023
The Fair Work Commission can make a workplace determination that sets terms and conditions of employment which replace an enterprise agreement in some circumstances.

Protections for migrant workers – effective from 1 July 2023
Migrant workers in Australia have always had the same rights and entitlements under workplace laws as other employees working in Australia. This change clarifies that migrant workers continue to have these rights and entitlements regardless of their migration status under the Migration Act 1958, and a breach of that Act doesn’t affect the validity of an employment contract or a contract for services.

Authorised employee deductions – effective from 30 December 2023
Employees will be able to authorise salary deductions made by their employer that are recurring and for amounts that vary from time to time. This means an employee can make a single written authorisation that allows their employer to deduct amounts from their salary even where the deduction amount may vary from year to year. It can be withdrawn by the employee in writing at any time. At the moment, a new written authorisation between an employee and employer has to be made if a deduction amount changes.

Right to superannuation in the National Employment Standards – effective from 1 January 2024
From 1 January 2024, the National Employment Standards will include a right to superannuation contributions. This means that unpaid or underpaid superannuation can be enforced under the Fair Work Act by more employees. Employers already have an obligation to pay superannuation contributions for eligible employees under superannuation guarantee laws. There would be no contravention of the NES provision where an employer has met their obligations under these laws. The ATO will continue to have the main responsibility for ensuring compliance with employer obligations under superannuation guarantee laws.

To view further details from Fair Work Australia, click here.

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