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Changes to the Unfair Contract Terms regime

On November 9, 2023, the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 was enacted in Australia, introducing significant changes to the unfair contract terms (UCT) regime under the Australian Consumer Law. The legislation now imposes substantial financial penalties on businesses that include unfair terms in their standard form contracts, with potential fines up to $50 million, three times the benefit obtained, or 30% of adjusted turnover during the breach period if the benefit is indeterminable. Additionally, the UCT regime's scope has been expanded to include more small businesses and provides clearer guidelines on what constitutes a standard form contract and the application of terms.

Superannuation

Starting 1 January 2024, superannuation contributions will be included in the National Employment Standards (NES), granting most employees covered by the NES the legal ability to pursue recovery of unpaid or insufficient superannuation contributions through court under the Fair Work Act.

Cruz Folmli 5/6/24 Cruz Folmli 5/6/24

Fixed Term Contracts

From December 6, 2023, new regulations will limit the use of fixed-term employment contracts to a maximum of two years, including any extensions or renewals, except under specific circumstances. These contracts cannot be extended or renewed more than once. Additionally, there are restrictions on offering consecutive fixed-term contracts to the same employee.

Cruz Folmli 5/6/24 Cruz Folmli 5/6/24

Flexible Work Arrangements

Starting from June 6, 2023, the criteria for employees to request flexible work arrangements have expanded to include those experiencing family and domestic violence or who are pregnant. Employers now face stricter requirements when handling these requests

Cruz Folmli 2/2/22 Cruz Folmli 2/2/22

Failure to comply with COVID-19 safety requirements valid reason for dismissal

The Commission concluded that the applicant was ‘utterly unrepentant’ about the conduct which caused his dismissal and that the applicant’s beliefs about the pandemic made him ‘impervious to directions and warnings from management’. The Commission found that the dismissal was not harsh, unjust or unfair. The application was dismissed.

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