Industrial Relations in 2024: What to expect from the year ahead
Written by Guy Hargreaves, Senior HR Consultant - Humanify HR Consulting
Humanify HR Consulting was pleased to host the recent ACT Australian Human Resources Institute (AHRI) event on 27 February 2024: "Industrial Relations in 2024" at the East Hotel, Canberra. The expert panel moderated by Sarah Queenan, Founder and Managing Director of Humanify HR Consulting included:
Bede Gahan, Partner from HWL Ebsworth;
Damien Booth, Assistant Commissioner, Workplace Relations Taskforce from the Australian Public Service Commission; and
Nicholas West-Foy, Senior Associate from Clayton Utz.
The new amendments to the Fair Work Act
The Fair Work Legislation Amendment (Closing the Loopholes) Act 2023 and the Workplace Gender Equality Amendment (Closing the Gender Gap) Bill 2023 will result in several new workplace relations changes to come into effect throughout 2024 and beyond.
These key changes include casual conversion, the new right-to-disconnect laws which received Royal Assent on 26 February 2024 and will come into effect in six months’ time. Other legislation like the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022, which came into effect last year have also had a significant impact on the industrial relations landscape, including changes to enterprise bargaining that came into force last year.
The panel discussed a wide range of matters, with the consensus that the top five areas that will dominate the industrial relations landscape in 2024:
Understanding the new legislative changes and how they impact your business.
Managing psychosocial hazards appropriately, like sexual harassment and burnout.
Ensuring HR policies are fit-for-purpose and support the effective implementation of enterprise agreements, including the new APS-wide enterprise bargaining outcomes.
Ensuring that the ‘Right to Disconnect’ is understood by employers and appropriate frameworks are put in place to prevent any misapplication of these new laws.
Making sure your business or organisation is paying people correctly, to avoid being caught out by the new anti-wage theft laws – particularly for small business who are more at risk.
You can read more about these points below.
Understanding the new legislative changes and their specific impact on your business is crucial. Many businesses may feel overwhelmed by the prospect of adapting to new laws, but in most cases, compliance will be about building awareness, engaging in consultation and necessary policy and procedural changes. For example, the new Workplace Gender Equality Agency mandatory reporting requirements will require new processes to be developed. There will be other legislative changes however, such as the limitations on fixed term employment and casual conversion, which will require a more planned and strategic approach to managing your workforce to ensure compliance.
Take the time to thoroughly assess how the changes will affect your operations, from employment contracts to workplace safety protocols. Employers need not panic, the new legislation which has just passed will not come into effect for another six months. By approaching these changes methodically and taking proactive action, you can minimise disruptions and safeguard your business or organisation.
Managing psychosocial hazards, such as sexual harassment and burnout, requires a proactive and comprehensive approach. Employers have a positive duty under workplace health and safety laws to manage and prevent psychosocial injury. Consider updating policies and procedures and developing training programs for managers and employees to prevent and address instances of harassment in the workplace.
Encourage open communication channels and foster a culture of respect and inclusivity to mitigate the risk of such incidents occurring. Additionally, prioritise employee well-being by implementing strategies to prevent burnout, such as promoting work-life balance, embracing the ‘right to disconnect’, and providing adequate support and wellbeing resources. Prioritising the psychological health and safety of your workforce not only allows you to comply with legal obligations but also helps cultivate a positive and productive workplace culture.
Ensuring HR policies and frameworks are fit-for-purpose is essential for the effective implementation of newly negotiated enterprise agreements. Employers might consider reviewing existing policies to ensure alignment with the legislative changes, and any specific requirements outlined in enterprise agreements. Focus primarily on any conditions or entitlements that may have changed during the bargaining process like enhancements to parental leave entitlements, flexible work arrangements, cultural leave and performance management processes.
The recent success of the APSC Bargaining Team resulted in negotiating 59 common conditions to be applied service wide across 101 Australian Public Service (APS) agencies. APS employers will now need to conduct a comprehensive review of relevant policies and procedures to allow for the smooth implementation of the newly negotiated employment conditions.
Understanding the 'Right to Disconnect' is crucial for employers to safeguard employee well-being and productivity. Employers have six months to develop clear guidelines and frameworks to ensure employees have the right to disconnect from unreasonable work-related communications outside of their designated hours. Encourage managers and team leaders to respect these boundaries and lead by example in promoting a healthy work-life balance. Provide training and support to help employees manage their time effectively and prioritise self-care.
Employers should think about the culture they are trying to create in their workplace, encourage people to disconnect from technology, and have conversations about this in the workplace. There are clear synergies between the right to disconnect and policies around flex time, overtime, and time off in lieu provisions. If these policies are well-constructed, then the right to disconnect for most employers, will not be problematic.
Ensuring accurate and lawful payment practices is essential to comply with new anti-wage theft laws passed late in 2023 which have made it a criminal offence to underpay employees. Statistically, small businesses who may not have the sophisticated payroll systems or the necessary industrial relations expertise of larger employers are at higher risk.
Organisations should consider conducting a comprehensive review of payroll processes and systems to identify any potential areas of non-compliance or discrepancies. Implement robust controls and checks to ensure employees are paid correctly and in accordance with relevant awards and agreements. By prioritising these precautionary steps, you can protect your business from legal liabilities and uphold your reputation as an employer of choice.
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Disclaimer: The material contained in this article is provided as general information only. It is not, nor is intended to be legal advice. If you wish to take any action based on the content of this article, we recommend that you seek professional advice that considers your specific context, needs and requirements.