New rules proposed when working on Commonwealth funded projects
A new Bill has been introduced in Federal Parliament which aims to impose obligations on employers who wish to undertake Commonwealth funded building and construction work.
The Bill proposes that when an employer seeks to take on building or construction work for the Commonwealth, their enterprise agreements must comply with the Tendering and Performance of Building Work 2016 (2016 code).
Previously, the bargaining enterprise agreements needed to be compliant with the 2016 code before works commenced. However, the new Bill proposes that this compliance must be present in the initial bargaining stages of the agreement.
The 2016 code imposes various requirements which must now be in place before the enterprise agreements are submitted such as:
- ensuring a workplace relations management plan is in place;
- prohibiting sham contracting and collusive practices; and
- managing drug and alcohol issues in the workplace;
Failure to comply with these new requirements has the potential to impact the profitability of employers due to lost tenders. Consequently, to ensure tenders on Commonwealth funded projects are not lost, employers in the building and construction industry should seek to review their enterprise agreements as soon as possible.
If you require the revision of your enterprise agreements to determine if they are compliant with the new Bill, please do not hesitate to contact our Workplace Team.