New changes aim to increase employer accountability.
The government is set to introduce reforms to the personal grievance system, aimed at strengthening employee accountability. Workplace Relations and Safety Minister Brooke van Velden says the move will strike a better balance between employees' rights and employers' responsibilities. The changes are expected to remove rewards for poor behavior or performance, simplifying the process and increasing certainty for employers.
Under the current Employment Relations Act, courts can reduce remedies when an employee contributes to a personal grievance. However, these reductions have become smaller while awards to employees have increased. Van Velden argues that this has led to uncertainty and potential costs for employers, incentivizing employees to file grievances in hopes of receiving financial compensation.
To address this issue, the government will update the Employment Relations Act to give more consideration to an employee's behavior when awarding remedies. This includes removing all remedies for employees whose behavior amounts to serious misconduct, such as violence or theft. Other technical changes include allowing remedy reductions of up to 100 percent and increasing the threshold for procedural error.
The reforms aim to promote a fair and balanced approach to personal grievances, with Van Velden stating that dismissing an employee is often a reluctant decision due to its impact on workplace morale and reputation. The changes will be progressed through the Employment Relations Amendment Bill, which is expected to be introduced in 2025.