Enterprise agreement approval easier with changes to workplace laws

“Farcical technicalities” can no longer sink enterprise agreements and four-yearly award reviews are out thanks to new workplace laws.

Australian Minister for Jobs and Industrial Relations and Minister for Women Kelly O'Dwyer says the changes are “common sense reforms”. Picture: Lukas Coch/AAP

Legislation giving the Fair Work Commission more discretion to approve enterprise agreements has been enacted by parliament after the ALP dropped proposed amendments seeking to reverse cuts to Sunday penalty rates.

The legislation, which passed last night with the support of the ALP, seeks to address business frustration at the commission overturning non-union enterprise agreements because of what employers have called farcical technicalities.

It also scraps the commission’s four yearly review of modern award process, a position backed by unions and employers who expressed fatigue at the drawn out complex review process.

The bill was introduced into parliament in February last year but was held up when Labor proposed amendments reversing the penalty rate cuts.

Jobs and Industrial Relations Minister Kelly O’Dwyer said the legislation would give the commission the capacity to approve enterprise agreements despite minor procedural or technical errors made during enterprise bargaining, as long as the errors would not disadvantage employees.

“These are common sense reforms. Under the current arrangements we have seen unintended, and sometimes absurd, outcomes which have caused lengthy delays,” Ms O’Dwyer said.

“For example, the Fair Work Commission has rejected an enterprise agreement where an employer printed the notice to employees at the start of the bargaining process onto a piece of paper with the company letterhead on it, rather than a plain piece of paper.”

The legislation repeals the requirement to review modern awards every four years, which Ms O’Dwyer said had “proved to be a costly and inefficient process”. Instead, modern awards can be reviewed on an as-needs basis to ensure they remain a relevant and fair minimum safety net.

“These reforms will slash red tape, saving an estimated $87 million in regulatory costs, and ensuring the Fair Work Act continues to operate effectively for both employees and employers,” she said.

Opposition workplace relations spokesman Brendan O’Connor said without Labor’s support, the government would not have been able to pass the bill.

“Federal Labor has always supported this legislation, but the Abbott-Turnbull-Morrison Government continued to delay it because they refuse join Labor in supporting penalty rates,’’ he said.

“Labor urges the government to support our private members bill to stop the cuts to penalty rates.”

Australian Industry Group Chief Executive, Innes Willox, said it was pleasing to see political differences put aside to allow this sensible bill to pass”.

Australian Chamber of Commerce and Industry’s workplace relations director, Scott Barklamb, said the changes would empower the commission to pass agreements rather than be forced to be “impractically inflexible”.

“Australia cannot afford to make enterprise bargaining difficult and unreliable, and last night’s changes should break down one significant barrier to agreement making,” Mr Barklamb said.

He said the award system would now have a much needed chance to stabilise.

“Since 2009, awards have been made, remade and reviewed three times — imposing a massive drain on unions and employer representatives. The changes will collectively save unions and employer representatives around $87 million over 10 years,” he said.