Australia: Vulnerable workers legislation has commenced

The Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 received royal assent on 14 September 2017 and commenced the following day.

From 15 September 2017, employers can face:

• a penalty of up $630,000 (or $126,000 for an individual) for a ‘serious contravention’ of a civil remedy provision; and
• a penalty of up to $63,000 (or $12,600 for an individual) for failing to give payslips or keep appropriate records – even if the breach was inadvertent. 

And from 27 October 2017, franchisors and holding companies (and their officers) will be liable for a range of different contraventions by their franchisees and subsidiaries in certain circumstances.

There are also a range of other important amendments to the Fair Work Act 2009 which commence today, including that:

• persons who suffer loss because of a contravention by a franchisee or subsidiary can, in certain circumstances, recover compensation from the franchisor or holding company (who in turn can recover from the contravening franchisee or subsidiary);

• the Fair Work Ombudsman now has broader powers including the power to seek a ‘FWO notice’ from the AAT (akin to ASIC’s power to issue a notice to require a person to produce documents, give information or attend an interview to answer questions); and
• employers who fail to keep appropriate records will now face a reverse onus of proof in relation to proceedings for alleged contraventions of the National Employment Standards, modern awards, enterprise agreements and certain other contraventions.

For a summary of these and other key changes, including the impacts on franchisors, please see our earlier article about this legislation. A copy of the amending Act is available here.

This article was written by Adam Ray, Solicitor, Brisbane.

Should you require any assistance with understanding the impact of this legislation on your business, please contact any member of our national team.