Fair Work Building and Construction (FWBC) will
be responsible for assessing whether any enterprise agreements made
on or after 18 May 2016 comply with the Building Code 2013. Contractors whose
enterprise agreements are non-compliant will be unable to bid for
Commonwealth-funded building work which is procured on or after
Friday 1 June 2016.
These changes do not affect existing projects, or
projects for which the procurement process is already underway
prior to 1 June 2016.
The changes are part of the revised Supporting Guidelines for the Building Code
2013 issued by the Minister of Employment on 6 May 2016 which
also allows the FWBC Director to recommend to the Employment
Minister an exclusion sanction for contractors whose non-compliance
with the Code cannot be satisfactorily rectified.
The revised Supporting Guidelines require contractors bidding
for future Commonwealth funded building work to confirm they are
not covered by an enterprise agreement that is inconsistent with
the Building Code 2013. This is done via a letter of
compliance from the FWBC.
According to the factsheet released by the FWBC, the
Minister's letter to the FWBC transferring the role of
assessment from the Department of Employment and Workplace
Relations has rescinded the previous practice of deeming registered
enterprise agreements automatically compliant with the Building
You should act now to ensure any draft enterprise agreements
post 18 May 2016 will comply with the Building Code 2013.
Further, code compliance has become a significant bargaining
issue in recent negotiations for Enterprise Agreements in the
construction industry. If you think that Code issues are likely to
impact on your bargaining seek advice on your industrial strategy
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
Persons listed may not be admitted in all states and
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When employees engage in out-of-hours misconduct, it can negatively affect the reputation of the employer.
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