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INDUSTRIAL RELATIONS LEGISLATION AMENDMENT ACT 2021 (NO. 30 OF 2021) - SECT 112

112 .         Section 17BA inserted

                After section 17B insert:


17BA.         Employees and prospective employees not to be unreasonably compelled to spend or pay amount

        (1)         An employer must not directly or indirectly require an employee to spend, or pay to the employer or another person, an amount of the employee’s money or the whole or any part of an amount payable to the employee in relation to the performance of work, if —

            (a)         the requirement is unreasonable in the circumstances; and

            (b)         in the case of a payment — the payment is directly or indirectly for the benefit of the employer or a party related to the employer.

        (2)         An employer (the prospective employer ) must not directly or indirectly require another person (the prospective employee ) to spend, or pay to the prospective employer or any other person, an amount of the prospective employee’s money if —

            (a)         the requirement is in connection with employment or potential employment of the prospective employee by the prospective employer; and

            (b)         the requirement is unreasonable in the circumstances; and

            (c)         in the case of a payment — the payment is directly or indirectly for the benefit of the prospective employer or a party related to the prospective employer.

        (3)         The regulations may prescribe circumstances in which a requirement referred to in subsection (1) or (2) is or is not reasonable.

        (4)         A contravention of subsection (1) or (2) is not an offence but that subsection is a civil penalty provision for the purposes of the IR Act section 83E.

        (5)         In proceedings under the IR Act section 83E for a contravention of subsection (1), an industrial magistrate’s court may, as an alternative, determine that a contravention of an entitlement provision has occurred for the purposes of the IR Act section 83.

        (6)         If the industrial magistrate’s court determines that an employer has contravened subsection (1) or (2) in respect of an employee or prospective employee, the industrial magistrate’s court may order the employer to pay to the employee or prospective employee compensation for any loss or injury suffered as a result of the contravention.

        (7)         The industrial magistrate’s court may make an order under subsection (6) in addition to imposing a penalty under section 83E.

        (8)         A term of an award, employer-employee agreement or contract of employment has no effect to the extent that the term —

            (a)         permits, or has the effect of permitting, an employer to make a requirement that would contravene subsection (1); or

            (b)         directly or indirectly requires an employee to spend or pay an amount, if the requirement would contravene subsection (1) if it had been made by an employer.

        (9)         In proceedings under the IR Act section 83 to enforce an entitlement provision, any amount that the employee has been required to spend or pay contrary to subsection (1), or in accordance with a term to which subsection (8) applies, is taken to be a deduction, from an amount payable to the employee, made by the employer otherwise than in accordance with section 17D.




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