King & Wood Mallesons

Asia-Pacific 100 position: 3

Federal Court undermines Victorian government building industry intervention with decision likely to affect NSW and QLD

The Federal Court has declared that Lend Lease and other contractors do not need to change existing enterprise agreements, or specially craft new ones, in order to win Victorian government projects. However, the Victorian Code of Practice for the Building and Construction Industry and associated Implementation Guidelines still operate and contractors will need to comply with other aspects.

Last Friday Justice Bromberg held that the Victorian Government breached the Fair Work Act 2009 (Cth) (FW Act) when it advised it would not provide work to contractors with enterprise agreements deemed non-compliant with the Guidelines. This decision will reverberate not only in Victoria, but also in NSW and QLD, where introduction of similar Guidelines is currently proposed. We explore the background to the decision and what it means for employers in the building industry…

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