23 Apr 2014

New enterprise agreements must comply with new Construction Code from tomorrow

Any contractor who wants Commonwealth-funded building work will need to ensure their new enterprise agreements comply with the draft Building and Construction Industry (Fair and Lawful Building Sites) Code 2014 from Thursday 24 April 2014, or risk losing Commonwealth-funded building work.

The Code sets out the standard of workplace relations conduct expected from contractors who want to perform Commonwealth funded work.

Although the Code is still only a draft, the Government says it will apply retrospectively to enterprise agreements made by contractors from tomorrow.  Therefore, any enterprise agreements made after 24 April that are not compliant with the new Code will mean the contractor will not be eligible for and be awarded Commonwealth-funded building work.

The Code will come into effect once the Building and Construction Industry (Improving Productivity) Bill 2014 commences as an Act (the Bill has not yet been passed and is unlikely to do so until the composition of the Senate changes on 1 July). 

We will provide a more detailed review of the Code and its implications shortly, but you should act now to ensure any draft enterprise agreements will comply with the new Code.

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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 communication. Persons listed may not be admitted in all States and Territories.