The Fair Work Legislative Amendment (Closing Loopholes) Bill 2023 has been split, with the first part of the Bill passing the Senate this afternoon. The remaining section that passed through the House of Representatives last week will proceed to the Senate in early 2024. To assist employers prepare for the proposed changes to the Fair Work Act 2009 (Cth) (‘the Act’) Holman Webb has highlighted the key amendments (from a total of over 80 proposed changes), which will likely have the greatest impact.

The passage of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) has brought about significant changes to the obligation on employers to provide Flexible Working Arrangements. Holman Webb foreshadowed these changes in our October 2022 article The Future of Flexible Work: Amendments to the Fair Work Act 2009.

In this article, we will discuss the specific changes.

The changes come into force on 6 June 2023.  It is important that employers consider the changes, given the prevalence of flexible working arrangements in the aftermath of the COVID-19 lockdowns

On 26 October 2022, the Commonwealth Government announced that it will introduce legislation to amend the provisions of the Fair Work Act 2009, as it relates to flexible work arrangements. 

Purportedly, the purpose of the amendments is to give the Fair Work Commission power to order that employers deal with requests for flexible workplace arrangements.  The legislation may also give the Fair Work Commission power to order that flexible workplace arrangements be put in place.

The wording of the Bill has not yet been published – however, if the final Bill matches industry expectations, it will for the first time give the Fair Work Commission direct independent power to order flexible work arrangements outside the scope of the disability legislative scheme.

The 30 May 2022 decision in Leggett v Hawkesbury Race Club Limited (No 4) [2022] FCA 622, handed down by a single Judge in the Federal Court of Australia, has highlighted numerous issues which give pause for thought – specifically regarding how employers should manage their risk, and how injured workers should bring claims for damages for personal injury.

Where an employer is exposed to damages for breach of provisions of the Fair Work Act 2009 or other Commonwealth legislation (such as anti-discrimination law, as well as in negligence), the Federal Court is not restricted in the way it assesses damages by the limitations in the NSW Workers Compensation Act 1987.

With this in mind, employers within the NSW workers compensation scheme may be entitled to indemnity from Icare and SIRA if the breach of the Fair Work Act 2009 arises from an “injury” to the worker. 

The Court has made it clear though, that a worker cannot double dip - and must account for any state compensation received

In August 2021, Holman Webb published an article highlighting the decision in Transport Workers Union of Australia v Qantas Airways Limited [2021] FCA 873, in which a single Judge of the Federal Court of Australia found that Qantas had engaged in adverse action in contravention of the Fair Work Act 2009, in deciding to make its ‘below the wing’ staff redundant.

Case Note: Transport Workers Union of Australia v Qantas Airways Limited 2021 FCA 873

The Trial Judge found that Qantas could not prove a negative - that the substantive and operative cause of the airline’s decision to make the staff redundant was not to prevent the workers exercising a workplace right. The workplace right was identified as the ability to negotiate a new Enterprise Bargaining Agreement in the 6 months following the redundancy. 

Qantas appealed that decision, and the appeal has now been determined.  The Full Court of the Federal Court delivered its judgment in the matter of Qantas Airways Ltd v Transport Workers’ Union of Australia [2022] FCAFC 71 on 4 May 2022, dismissing the Appeal. 

In the lengthy Federal Court judgment in Transport Workers Union of Australia v Qantas Airways Limited 2021 FCA 873 delivered on 30 July 2021, Lee J found that Qantas took adverse action when it made over 2,000 workers redundant, and that the airline could not prove that its reasons for doing so were not prohibited by the Fair Work Act 2009. 

The consequences of the breach are yet to be determined.