The changes are expected to reduce complexity and ensure enterprise agreements and wage increases are progressed as quickly as possible, Kelly O’Dwyer said.
“These are common sense reforms. Under the current arrangements we have seen unintended, and sometimes absurd, outcomes which have caused lengthy delays,” Minister O’Dwyer said.
“For example, the Fair Work Commission has rejected an enterprise agreement where an employer printed the notice to employees at the start of the bargaining process onto a piece of paper with the company letterhead on it, rather than a plain piece of paper.”
The minister explained that the changes give the Fair Work Commission the capacity to approve enterprise agreements despite minor procedural or technical errors made during enterprise bargaining, as long as the errors would not disadvantage employees.
The legislation also repeals the requirement to review modern awards every four years, which has proved to be a costly and inefficient process. Instead, in a move supported by both unions and employer groups, modern awards can be reviewed on an as needs basis to ensure they remain a relevant and fair minimum safety net.
“These reforms will slash red tape, saving an estimated $87 million in regulatory costs, and ensuring the Fair Work Act continues to operate effectively for both employees and employers,” Minister O’Dwyer said.
“Ultimately, these changes will result in a better deal for hard-working Australians.”
