Impact on Employers
The new provisions in modern awards will only apply to an employer’s workplace if there is a workplace delegate onsite.
In our view, one of the biggest impacts of these changes is employees’ right to representation in variety of matters. This was previously not available (unless negotiated under an enterprise agreement or was otherwise part of the employer’s policies).
Further, situations could arise where employers could have greater exposure under the general protections of the FW Act. For example, if there is workplace delegate onsite, an employee is now entitled to a benefit under a workplace instrument, i.e. to be represented by that delegate for certain matters (i.e. when consulting). A failure to engage with the workplace delegate in these situations, or give the opportunity to the employee to be represented by the workplace delegate, may create a general protections exposure.
Employers also need to be aware that enterprise agreements made on or after the 1 July 2024 must include delegates rights terms. If they do not, the clause from any underpinning modern award will be included on approval by the FWC. Further, if an employer includes their own delegates term in an enterprise agreement, this clause must be no less favourable than the delegates rights term in the underpinning modern award that covers the employees. If multiple awards apply, the most favourable delegate clause will apply.
The FWC will review workplace delegates terms after 12 months of operation to deal with any issues which arise with respect to its operation, generally or in relation to individual modern awards.
Should you have any questions or concerns relating to employer obligations under the new workplace delegates rights clause please don’t hesitate to contact the HR Legal team.