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2016-2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
FAIR WORK AMENDMENT (CORRUPTING BENEFITS) BILL 2017
SUPPLEMENTARY EXPLANATORY MEMORANDUM
Amendments to be Moved on Behalf of the Government
(Circulated by authority of the Minister for Employment, Senator the Hon. Michaelia Cash)
Outline
AMENDMENTS TO THE FAIR WORK AMENDMENT (CORRUPTING BENEFITS)
BILL 2017
OUTLINE
The Fair Work Amendment (Corrupting Benefits) Bill 2017 (the Bill) amends the Fair Work Act
2009 (the Act) to respond to recommendations of the Final Report of the Royal Commission into
Trade Union Governance and Corruption (the TURC Report), to promote the better governance
of registered organisations.
The TURC Report highlighted numerous examples of payments being made to influence
registered organisations and their officers and a lack of transparency relating to financial benefits
derived by bargaining representatives. These recent examples demonstrate that the existing
regulatory framework is not sufficient to provide members of registered organisations with
confidence that the management of registered organisations is accountable and transparent.
The Bill responds to TURC Report recommendations 40, 41 and 48.
These amendments amend opposition amendments contained on sheet 8164.
Senate page i Fair Work Amendment (Corrupting Benefits)
Bill 2017
Financial Impact Statement
Financial Impact Statement
Nil
Senate page ii Fair Work Amendment (Corrupting Benefits)
Bill 2017
Statement of Compatibility with Human Rights
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Amendments to the Fair Work Amendment (Corrupting Benefits) Bill 2017
The amendments to the Bill are compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of amendments to the Fair Work Amendment (Corrupting Benefits) Bill 2017
The Bill will amend the Act to respond to recommendations of the final report of the Royal
Commission into Trade Union Governance and Corruption (the TURC Report). The Bill
responds to TURC Report recommendations 40, 41 and 48.
The amendments to Schedule 1 to the Bill will clarify that legitimate payments at proposed
subsection 536F(3) will include payments of entitlements owed to former employees only in
relation to their former employment and will provide that nominal value is to mean no more than
2 penalty units.
Human rights implications
The amendments do not alter the human rights implications of the Bill as expressed in the Statements
of Compatibility with Human Rights that accompany the explanatory memorandum for the Bill.
Conclusion
The amendments to the Bill are compatible with human rights.
Minister for Employment, Senator the Hon. Michaelia Cash
Senate page iii Fair Work Amendment (Corrupting Benefits)
Bill 2017
Notes on Amendments
NOTES ON AMENDMENTS
In these notes on amendments, the following abbreviations are used:
Bill Fair Work Amendment (Corrupting Benefits) Bill 2017
Senate page 1 Fair Work Amendment (Corrupting Benefits)
Bill 2017
Notes on Amendments
Amendment No 1 - at the end of paragraph 536F(3)(b), omit "or former employees",
substitute ", or the defendant's former employees in relation to their former
employment".
1. This amendment amends item 1 of amendment sheet 8164 to remove the words 'or
former employees' and substitute 'or the defendant's former employees in relation to their
former employment'.
2. Item 1 of amendment sheet 8164 would amend the legitimate payments provided for
in paragraph 536F(3)(b) of the Bill to allow for benefits provided and used for the sole or
dominant purpose of benefiting the defendant's employees or former employees.
3. Item 1 of sheet EH227 makes clear that these benefits will only be exempt if they
are made in relation to the former employee's former employment.
Amendment No 2 - paragraph 536F(3)(ca), after "nominal value", insert "(meaning no
more than 2 penalty units)".
4. This amendment amends item 2 of amendment sheet 8164 to insert a definition of
nominal value for a benefit associated with travel or hospitality during consultation,
negotiation or bargaining.
5. Item 2 of amendment sheet 8164 would amend the list of legitimate payments
provided for in subsection 536F(3) to include a range of benefits of nominal value. Nominal
value is not defined on the amendment sheet.
6. Item 2 of sheet EH227 would provide that "nominal value" in new paragraph
536F(3)(ca) would mean no more than 2 penalty units.
Amendment No 3) - paragraph 536F(3)(cb), after "nominal value", insert "(meaning no
more than 2 penalty units)".
7. This amendment amends item 2 of amendment sheet 8164 to insert a definition of
nominal value for a benefit associated with token gifts, event invitations or similar benefits
given in accordance with common courteous practice between employers and organisations.
8. Item 2 of amendment sheet 8164 would amend the list of legitimate payments
provided for in subsection 536F(3) to include a range of benefits of nominal value. Nominal
value is not defined on the amendment sheet.
9. Item 3 of sheet EH227 would provide that "nominal value" in new paragraph
536F(3)(cb) would mean no more than 2 penalty units.
Senate page 2 Fair Work Amendment (Corrupting Benefits)
Bill 2017
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