Effective July 1, 2024, Australian workplaces are facing a significant change in union rights. The Fair Work Commission (FWC) has expanded the circumstances under which union officials can enter workplaces without prior notice. Specifically, if a union suspects wage underpayment, they can now obtain an exemption certificate from the FWC, allowing them to conduct surprise inspections. This shift aims to strengthen wage theft investigations, but it also raises concerns for employers about potential disruptions and the need for heightened compliance.
 

Key Changes to Union Right of Entry Powers

• New Ground for Surprise Inspections: Starting from 1 July 2024, the Fair Work Commission (FWC) can grant union officials permission to enter workplaces without prior notice if they suspect wage underpayment.
• Conditions for Exemption: To obtain this exemption, the union must demonstrate that giving advance notice could jeopardize the investigation by potentially leading to the destruction of evidence.
• Notification Requirements: Even with an exemption, the union official must provide a copy of the exemption certificate to the relevant parties at the workplace, either before or as soon as possible after entering.
• Specifics in the Exemption Certificate: The certificate must detail the premises, the union and officials involved, the permitted entry dates, and the suspected contravention.
• Misuse Consequences: If unions misuse these rights, the FWC has the authority to impose restrictions or even ban surprise inspections related to wage underpayments for specific unions or officials.

Important Takeaways

• Employers should be aware that union officials may now conduct surprise inspections if they suspect wage underpayments.
• These inspections can occur not only at construction sites but also at off-site offices.

If employers have concerns or questions about union right of entry, they should seek advice from the MBA Workplace Relations department on 02 8586 3555.