On 17 April 2014, the Government published an advance release of the Building and Construction Industry (Fair and Lawful Building Sites) Code 2014 (‘the Building Code’). On 28 November 2014 it published a further advance release. The Building Code sets out the standard of workplace relations conduct expected from those contractors that want to perform work funded by the Commonwealth Government. Among other provisions, the Code prohibits the inclusion of clauses in enterprise agreements that:
- would impose limits on the right of the code covered entity to manage its business or to improve productivity;
- would discriminate, against certain persons, classes of employees, or subcontractors; or
- are inconsistent with freedom of association requirements set out elsewhere in the Code.
While the Code does not come into effect until the Building and Construction Industry (Improving Productivity) Bill 2014 commences as an Act, the advance release of the Code notes that the provisions described above apply in respect of enterprise agreements made after 24 April 2014, or that were varied in accordance with the Fair Work Act 2009. These clauses are likely to have the effect of influencing enterprise agreements negotiated in the building and construction industry from that date. The two decisions to make an advance release of the Building Code 2014 were informed by analysis and consultations undertaken by the Coalition Taskforce on Re-establishing the Australian Building and Construction Commission prior to the 2013 Federal election, and by the Department of Employment subsequently. This process was certified by the Department of Employment as meeting the requirements of a Regulation Impact Statement. The Office of Best Practice Regulation (OBPR) does not assess independent reviews. In certifying the process the Department of Employment did not follow best practice as the self-assessment and agreement to regulatory costs occurred after the first decision to publish an advance release of the Building Code 2014 on 17 April 2014. The Department of Employment estimates the reduction in annual regulatory burden is approximately $1.05 million. The OBPR has agreed to the estimated change in regulatory burden.
- Building Code – Department of Employment Certification Letter [
69KB] - Building Code – Department of Employment Certification Letter [
234KB] - Building Code – Certification Letter Attachment A [ 29KB]
- Building Code – Certification Letter Attachment A [ 444KB]
- Building Code – Certification Letter Attachment B [ 286KB]
- Building Code – Certification Letter Attachment B [ 1.7MB]
- Building Code – Certification Letter Attachment C [ 20KB]
- Building Code – Certification Letter Attachment C [ 73KB]
- Building Code – Certification Letter Attachment D [ 142KB]
- Building Code – Certification Letter Attachment D [ 17KB]
- Building Code – OBPR assessment [ 152KB]
- Building Code – OBPR assessment [ 434KB]