Businesses are being encouraged to take four steps to prepare themselves for flagged changes to Australia’s industrial relations system, after the bill passed both houses today.

Business NSW CEO Daniel Hunter said businesses need to prepare for these changes as soon as possible.
“Whilst Business NSW advocated against many of these changes, as NSW’s peak body for business, we will now help and guide small and medium businesses to navigate these changes,” Mr Hunter said.

Employment Minister Tony Burke and ACT Senator David Pocock this week confirmed they have struck a deal on the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill.

The bill has now passed both houses, paving the way for changes which will drive up the cost of doing business.

“As a result of these projected changes, businesses will be required to spend significantly more time dealing with industrial relations issues,” Mr Hunter said.

“Whilst we maintain our objection to this legislation in its current form, enterprises need to get out in front of this issue.”

Mr Hunter said businesses need to:

• Change their approach to using fixed term or maximum term contracts as the ability to use these without appointing permanently is likely to be significantly limited in future;
• Guarantee that pay secrecy clauses – which prevent employees talking about their salaries – are removed from contracts going forward;
• Ensure they have robust protocols in place around responding to flexible work requests, including working from home, so they are not dealt with flippantly. Responding to these requests requires compliance with a prescriptive process and companies need to ensure they have objective reasons to support any refusals to accept flexible working requests;
• Seek strategic advice in relation to enterprise bargaining, which is likely to be significantly increased in many sectors under the new laws. With the introduction of multi-employer bargaining across businesses in an industry, businesses need to consider what steps they can take to insulate their existing employment arrangements from being replaced with an industry-wide industrial instrument.

"As a result of these projected changes, busiensses will be required to spend significantly more time dealing with industrial relations issues."

Business NSW is equipped to help the country’s small and medium businesses navigate these changes.