Prohibition on 100% FIFO
The Queensland Government passed the Strong and Sustainable Resource Communities Act 2017 (Qld) (SSRC Act) on 31 August 2017. The majority of the provisions do not come into effect until 30 March 2018. The objects of the SSRC Act include ensuring that residents of communities in the vicinity of large resource projects benefit from the construction and operation of those projects. For example, by requiring owners of, or proponents for, large resources projects to employ people from nearby regional communities.
Consistent with those objectives, the SSRC Act prohibits large resource projects in Queensland that have a nearby regional community from using a 100 per cent fly-in, fly-out workforce. This prohibition applies both to existing and future large resource projects with a nearby regional community. Existing resource projects with 100% FIFO workforces could be affected. However, the SSRC Act provides for a six month transition period (calculated from the day that the Coordinator-General publishes the name of the large resource project) to allow existing large resource projects time to consider their arrangements and make any adjustments in order to comply with the new prohibition.
A resource project will be a large resource project if it is a resource project:
- for which an Environmental Impact Statement under the Environmental Protection Act 1994 (Qld) or the State Development and Public Works Organisation Act 1971 (Qld) is required, or
- that holds a site-specific environmental authority under the Environmental Protection Act 1994 (Qld), and
- has or is projected to have a workforce of 100 or more workers (or a smaller workforce decided and notified in writing by the Coordinator-General to the owner of the project).
A “nearby regional community” is a town within a 125 kilometre radius of the main access to the project with a population of more than 200 people (or a greater radius or smaller population decided and notified in writing by the Coordinator-General).
The SSRC Act also creates an offence, with a maximum penalty of $50,460 for an individual and $252,300 for a corporation, for advertising positions for workers for a large resource project (whether in respect of an existing or future project) in a way that either prohibits residents of a nearby regional community from applying for the positions, or otherwise states in any way in a document that residents of a nearby regional community are not eligible to be workers on the project. However, this provision only applies to future recruitment activities and is not retrospective.
Supply chain developments
On 14 September 2017, the Fair Work Amendment (Protecting Vulnerable Workers ) Act 2017 (Cth) received assent. This followed significant media attention in 2016 into the exploitation of temporary work visa holders and other vulnerable workers. (See our related article – My brother’s keeper: Franchisor and parent company liability reforms after Vulnerable Workers Bill passes).
Amongst other things, the Vulnerable Workers Act amended the Fair Work Act 2009 (Cth) to introduce new civil penalties for ‘serious contraventions’ of the FW Act, which are ten times higher than for other contraventions (up to $630,000 for a corporation and $126,000 for individuals).
It remains important for employers to be vigilant in ensuring compliance with the FW Act, especially in relation to the risk of underpayments or arrangements that could be construed as amounting to sham contracting.
Authors: Tamara Lutvey, Senior Associate; and Amanda Wu, Lawyer.
