Maintaining a healthy work-life balance has become a significant concern for employees across industries. In response to this growing need, the Secure Jobs, Better Pay Act 2022 has been introduced, amending rules, and introducing new provisions to empower the Fair Work Commission to resolve disputes related to flexible work arrangements. It’s vital that employers have a comprehensive understanding of the Act and its implications for businesses.

What are the key changes?

One of the crucial changes introduced by the Act is the requirement for employers to meet with employees to discuss flexible work requests. Employers cannot refuse a request without first engaging in a discussion regarding alternative working arrangements. To ensure compliance, employers must adhere to the following steps when receiving a request:

  1. Meet with the employee to discuss their flexible work request.
  2. If the employer intends to refuse the request, explore, and agree upon alternative changes to the employee’s working arrangements, documenting them in the employer’s written response.
  3. If the employer still intends to refuse the request, provide reasonable business grounds for the refusal, and suggest changes that could accommodate the employee’s circumstances or acknowledge that no such changes are possible.

For the first time, the Act introduces a formal dispute resolution mechanism for cases where employers refuse a flexible work request or fail to provide a written response within 21 days. Initially, conciliation should be pursued as the primary avenue for resolving the dispute. If conciliation fails or urgency is required, the Fair Work Commission has the power to arbitrate the dispute.

The Fair Work Commission can issue binding decisions, including ordering the employer to respond to the request, declaring the reasonableness of the employer’s grounds for refusal, or considering the employer’s lack of response as a refusal.

What does this mean for employers?

These amendments expand the obligations of employers when considering and responding to flexible work requests. Business owners must now:

  1. Meet with employees to discuss their flexible work requests.
  2. Inform employees about any changes to working arrangements the employer is willing to consider to accommodate their circumstances.
  3. Be prepared to engage with the Fair Work Commission’s dispute resolution process if necessary.

The flexible work amendments will come into effect from June 6, 2023.

To ensure compliance and smooth implementation, employers should:

  1. Review current practices for considering and responding to flexible work requests.
  2. Review the current arrangements you have in place with employees who have flexible work arrangements ensure these are well documented and not just hand shake agreements
  3. Clearly document any Hybrid working arrangements, ensure you have fully assessed the operational viability of maintaining these agreements.
  4. Have a clear policy and supporting documents, such as request forms and well documented process to manage requests.
  5. Update or implement policies and procedures on flexible working arrangements in alignment with the Act’s criteria and timeframes.
  6. Consider the approach for future discussions with employees regarding flexible work requests.
  7. Educate supervisors and managers on the upcoming changes and what is now required in supporting or declining requests.
  8. Identify limitations, if any, related to offering flexible working arrangements and gather evidence to support these limitations, considering the nature of the business.

With the amendments to flexible work arrangements coming into effect next month, employers need to ensure their HR documentation reflects the changes and employees are aware of the changes. Ensure your business is compliant, get in touch with our team for an obligation free chat.

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