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‘Hidden’ enterprise agreement deadlines

25 October 2023

Two key deadlines are approaching that businesses with enterprise agreements or involved in bargaining need to be aware of.

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As the days get longer and warmer, our minds naturally turn to the end of the year, holidays and planning for 2024. More than ever, though, it’s important to keep your industrial relations focus sharp until the end of the year.

Deadline 1: Intractable bargaining orders

The recent Fair Work Commission (FWC) decision in United Firefighters’ Union of Australia v Fire Rescue Victoria [2023] FWCFB 180 is a timely reminder of recently introduced intractable bargaining powers given to the FWC for negotiations longer than nine months in the Secure Jobs, Better Pay legislation.

In this case, the union pursued a wage claim it was not possible for Fire Rescue Victoria to agree to because of Victorian Government wage increase policies, leading to an impasse in the bargaining process. The FWC ordered the parties to participate in further negotiation to try and resolve or narrow the issues in dispute, before the FWC made a binding arbitration decision.

This decision serves as a reminder that bargaining processes which last for more than nine months can lead to the FWC stepping in to take a more active role in your process. The FWC will usually start by requiring the parties to negotiate for a period to resolve the issue. If that is unsuccessful, the FWC can make orders which will decide the terms and conditions of employment that were still in dispute.

The Victorian Chamber’s Workplace Relations Consultants can represent your business in any matters before the FWC, giving you piece of mind and expert support and advice throughout.

Deadline 2: Zombie Agreements

Don’t let 7 December 2023 be a date that lives in infamy for your business! Most pre-2010 collective and individual ‘zombie’ agreements will automatically terminate on 7 December 2023 unless you act soon.

The likely effect of this termination is that your employees covered by one of these agreements will revert to the terms and conditions set out in a Modern Award, which may be significantly different from the agreement terms. This could lead to surprising and substantial underpayment (or overpayment) issues for your business. It could also play havoc with your current payment/payroll systems and processes.

Our experienced Workplace Relations Consultants can help you work out whether this type of agreement applies to your employees.

In certain circumstances, you may be able to apply to the FWC to extend the life of these agreements for up to four years – but be quick because applications must be made before 7 December 2023. Our team can also assist with this process. We urge you to get advice about what to do now as a matter of urgency!

How can the Victorian Chamber help

For assistance on any aspect of your employment obligations, please call the Victorian Chamber Workplace Relations Advice Line on 8662 5222. Our experienced team are here to give you over-the-phone advice about human resources or workplace relations issues.

Our consulting team is also available to assist your business navigate the complexities of enterprise bargaining and can provide you with best practice guidance to ensure you have a sound bargaining and industrial relations strategy to navigate these matters and any other workplace relations matters that might come up in your business.

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