In February 2014, the Federal Government proposed certain amendments to the Fair Work Act through its Fair Work Act Amendment Bill 2014 (Bill). As part of the law amending process in Australia, the Bill is required to pass through both Houses of the federal Parliament – the Senate and the House of Representatives – in identical form, before being presented to the Governor General for assent.
Whilst large parts of the Bill have been removed by the Senate, earlier this month certain key amendments, regarding Greenfields agreements, protected action ballot orders, unpaid parental leave and reclaiming unpaid moneys, were approved by the Senate.
Of particular significance are the proposed amendments to the provisions within the Fair Work Act dealing with Greenfields agreements. Greenfields agreements are agreements made between an employer and one or more unions regarding the terms and conditions of employment for a new enterprise for which employees have not yet been hired. The amendments will allow employers to make an application to the Fair Work Commission for approval of a Greenfields agreement in circumstances where a deal has not been reached between an employer(s) and a union(s) within a “negotiating period” of six months. This would limit the potential for unions to stall major new projects.
If the amended Bill is approved by the House of Representatives, the proposed amendments to the Fair Work Act will come into effect following the Bill’s assent.