To bolster workers' rights, the Western Australian government has passed the Industrial Relations Legislation Amendment Bill 2024, introducing significant reforms that will impact employers across the state. Among the key provisions, the bill establishes a new right for certain employees to request flexible work arrangements, a move that is set to reshape how businesses approach work-life balance and employee support in the state.

The changes, which will come into effect on January 31, 2025, carry wide-reaching implications for HR teams, requiring them to adapt policies and practices in line with the new legal framework. So, let’s understand the essential elements of the bill. 

Right to request flexible work arrangements

The most notable change introduced by the Industrial Relations Legislation Amendment Bill is the right for employees to request flexible working arrangements, specifically for those returning from parental leave or facing family and domestic violence. Under the new law, workers in these situations will be entitled to formally request changes to their working hours, location, or patterns to accommodate their personal circumstances.

This right represents a significant shift toward supporting vulnerable employees, particularly those who have traditionally faced barriers to workplace flexibility, such as parents returning to the workforce or individuals dealing with the challenges of family and domestic violence. Employers will be legally required to consider these requests seriously and respond in a timely manner, making it essential for HR departments to establish clear, fair, and transparent processes for managing such requests.

HR teams will need to prepare for an influx of requests for flexible work, which may include adjustments such as working from home, flexible hours, job-sharing, or part-time arrangements. It is crucial for businesses to approach these requests with empathy and a commitment to finding solutions that balance employee needs with operational requirements.

Employers will also need to consider how these changes fit into their overall workforce strategy. Flexibility can be a powerful tool for retaining talent, increasing employee satisfaction, and promoting diversity and inclusion within the workplace. However, implementing flexible work policies requires careful planning and communication to ensure that all employees, regardless of their work arrangements, have equal access to career advancement opportunities, training, and support.

Sexual harassment prohibition in state employment laws

Another key provision of the new legislation is the prohibition of sexual harassment in State employment. This provision enshrines into law the right of every Western Australian to a workplace free from sexual harassment. It mandates that employers implement appropriate measures to prevent, address, and remedy instances of harassment, creating a safer and more supportive work environment for all employees.

This change follows growing calls from advocacy groups and unions for stronger protections against workplace harassment. By incorporating the prohibition into state employment law, the Western Australian government is making it clear that sexual harassment is unacceptable and that there is a legal framework in place to address it.

For HR professionals, this represents a crucial step in strengthening workplace culture. Employers will need to review their existing harassment policies and ensure they are compliant with the new legislation. This includes providing training for all staff on what constitutes sexual harassment, how to report it, and the steps the company will take to investigate and resolve complaints.

HR teams should also consider how to foster a culture of respect and inclusion that goes beyond compliance. Ensuring that all employees feel safe and supported in their work environment should be a top priority for businesses, and proactive measures to prevent harassment—such as clear reporting channels, education, and creating a zero-tolerance policy—are essential.

Protections against misclassification of workers

The new bill also introduces safeguards against the misclassification of workers as independent contractors or casual employees. This provision aims to prevent employers from artificially labeling workers to avoid providing them with full employee benefits and protections. Misclassification has been a persistent issue in many industries, particularly in sectors like gig work, where employees may not receive benefits such as paid leave, superannuation, and other entitlements.

HR teams will need to carefully review their workforce classifications to ensure that employees are being categorized correctly. Misclassification can lead to significant legal and financial consequences for businesses, including fines, penalties, and the potential for costly litigation. It is crucial for HR departments to stay informed on the legal distinctions between employees, contractors, and casual workers and ensure that all workers are receiving the appropriate entitlements under the new legislation.

Fit and proper person test for union officials

In another significant change, the bill introduces a Fit and Proper Person test for union officials who wish to obtain a State Right of Entry permit. This test will assess whether union officials meet certain ethical and legal standards before they can access workplaces to represent employees. The goal is to ensure that union officials are operating in the best interests of workers and employers and that they adhere to appropriate standards of conduct.

HR departments will need to stay up to date on the requirements for union officials, as the new legislation may influence how unions interact with employees in the workplace. Understanding these provisions will help HR teams navigate the complexities of union relations and ensure that they are in compliance with the new regulations.

Penalties and enforcement

The new legislation also increases penalties for contravening State employment laws. Employers who fail to comply with the new regulations, particularly in relation to flexible work requests, sexual harassment policies, and worker misclassification, could face significant fines and legal action.

For HR teams, this highlights the importance of diligent record-keeping and ensuring that company policies align with the law. It will be essential for HR professionals to monitor compliance across all areas of the business and make necessary adjustments to prevent violations. Regular audits, training, and communication with management will be vital in ensuring that the business meets its legal obligations under the new framework.

Streamlining the Western Australian industrial relations commission

Another important element of the bill is the streamlining of the Western Australian Industrial Relations Commission. The legislation abolishes certain constituent authorities and consolidates their jurisdiction under a single commissioner. This move aims to simplify the industrial relations process and improve efficiency in resolving disputes between employers and employees.

For HR teams, this means staying informed about changes in the structure of industrial relations and understanding how disputes may be handled in the future. The new structure may lead to faster and more efficient resolutions of industrial disputes, which could benefit both employers and employees by reducing the time and resources spent on legal proceedings.

What HR needs to do next

As Western Australia prepares to implement the Industrial Relations Legislation Amendment Bill in January 2025, HR teams must take proactive steps to ensure compliance and prepare for the changes ahead. Here are the key actions HR professionals should take:

• Review flexible work policies: Ensure that your company has a clear process for managing requests for flexible work, particularly for employees returning from parental leave or facing family and domestic violence. Develop a fair and transparent approach to evaluating these requests and communicating decisions.
• Update harassment policies: Revise your sexual harassment policies to align with the new law, and provide training to all staff on what constitutes harassment and how to report it. Foster a workplace culture that prioritizes respect and inclusion.
• Audit worker classifications: Review your workforce to ensure that employees are properly classified as employees, contractors, or casuals. Address any misclassifications to avoid penalties and legal issues.
• Stay informed on union relations: Keep up to date on the new Fit and Proper Person test for union officials and how it may impact union interactions within your workplace.
• Prepare for increased penalties: Ensure that your company is fully compliant with the new legislation to avoid penalties. Implement robust monitoring and reporting systems to track compliance.
• Understand the changes to the Industrial Relations Commission: Stay informed about how the new structure of the commission may affect dispute resolution and adjust your approach to managing industrial relations accordingly.