To come into effect from 1 December 2022, the Code will apply to suppliers bidding for applicable goods, services and construction projects or business expansion grants.

It applies to all Victorian Government departments and agencies issuing threshold procurement contracts or significant business expansion grants to:

• Suppliers bidding for goods, services and construction procurement worth $3 million or more (exclusive of GST)
• Subcontractors delivering work worth $10 million or more (exclusive of GST) on procurement of $20 million or more (exclusive of GST)
• Businesses applying for significant business expansion grants of $500,000 or more (exclusive of GST) with a commitment to create jobs.

A pre-assessment certificate is also required for businesses seeking to be considered. It is issued to applicants with a history of complying with existing industrial relations laws and workplace health and safety laws. Some will also need to provide a Fair Jobs Code Plan as part of the procurement or grant process.

The Code’s aim is to “ensure suppliers and businesses benefiting from large government contracts or significant grants are providing safe, secure and inclusive workplaces for their employees”.

However, in line with the Victorian Chamber’s response to the Victorian Fair Jobs Code Stakeholder Discussion Paper in July 2020, our position remains that the introduction of this code adds an unnecessary layer of cost and complexity to doing business in Victoria.

The Victorian Chamber’s concerns around the Fair Jobs Code include:

• Business compliance with the Code may breach confidentiality requirements
• Supply chain compliance puts Victorian small and medium enterprises at a disadvantage
• Requiring a Pre-Assessment Certificate adds an unnecessary burden on business
• Fair Jobs Code compliance needs to be integrated into existing Victorian Government legislation, policy and codes
• Code compliance can negate the objective of industry grants.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra said: “The State Government’s focus should be on removing barriers to Victorian business growth, not creating more.

“Access to government procurement opportunities and business grants should be determined by compliance with existing employment, industrial and workplace health and safety obligations.

“While we support business compliance in adherence with existing workplace laws, this new Code contradicts the Government’s stated objective to get more businesses engaged in government procurement and will add unnecessary layers of complexity to Victorian businesses at a time when many are struggling to survive.”

More detail on the code and pre-assessment certificates can be found here.