Fair Jobs Code: What you need to know

On 10 August 2022, the Victorian Government launched the Fair Jobs Code (FJC).

The FJC seeks to promote the fair treatment of workers by entities who provide services to or who receive funding from the Victorian Government, by assessing their conduct against the five FJC Standards.

What are the FJC Standards?

• Standard 1: Comply with all applicable employment, industrial relations and workplace health and safety obligations.
• Standard 2: Promote secure employment and job security
• Standard 3: Foster cooperative and constructive relationships between employers, employees and their representatives
• Standard 4: Foster workplace equity and diversity
• Standard 5: Promote supply chain compliance

When does the FJC come into effect?

The FJC will come into effect on 1 December 2022, but Suppliers, Sub-Contractors and Businesses are able to apply for Pre-Assessment Certificates now.

Who does the FJC apply to?

The FJC applies to all Victorian Government departments, agencies and public bodies in relation to contracts or grants with Suppliers and Businesses meeting the definitions of a Threshold, High Value Procurement Contracts, or Significant Business Expansion Grant.

Who is a Supplier or Business under the FJC?

• Suppliers: any entity providing goods, services or works, including providers of construction works engaged in supply agreements worth $3 million or more. Additional conditions apply where an agreement is valued at over $20 million (discussed below)
• Businesses: applying for a significant Business expansion grant where:
  • the Victorian Government is providing $500,000 or more; and
  • an objective or deliverable of the grant is the creation of new jobs.

The FJC will apply to companies, natural persons, sole traders, partnerships and all other legal entities that are contracted for Threshold or high value procurements contracts or apply for Significant Business Expansion Grants.

What do Suppliers and Businesses need to do?

Pre-Assessment Certificate application process

Suppliers and Businesses are required to a hold Pre-Assessment Certificate prior to tendering for Threshold or High Value Procurement Contracts or applying for a Significant Business Expansion Grant.

Sub-contractors, where the contract is worth $10 million or more, engaged by a Supplier to Government where the contract is worth $20 million or more, will also be required to hold a Pre-Assessment Certificate.

Applications must include information about the Supplier or Business' history of compliance with labour standards and the treatment of their workers. This includes whether they have been subjected to any adverse rulings or enforceable undertakings.

Pre-Assessment Certificates will be valid for two years. There will be no charge to apply for or renew a Certificate.

The FJC Unit will maintain a publicly available register of Suppliers and Businesses who hold a Pre-Assessment Certificate.

Fair Jobs Code Plans

A FJC Plan is completed by a Supplier or Business to demonstrate that it complies with the FJC Standards.

Construction Suppliers will be required to complete a FJC Plan Addendum (instead of a FJC Plan). The FJC Plan Addendum takes into account other construction procurement requirements.

Who needs to complete a FJC Plan?

• Suppliers that tender for Victorian Government contracts valued at $20 million or more (High Value Procurement Contracts); and
• Business that enter into a Victorian Government grant agreement that is valued at $500,000 or more exclusive of GST where a key milestone is to deliver new jobs (Significant Business Expansion Grants).

How does FJC effect procurement processes?

From 1 December 2022, Victorian Government bodies will be required to ensure that they comply with the code by:

• including FJC Model Clauses in tender documents and grant application processes;
• confirming that Suppliers and Businesses hold Pre-Assessment Certificates
• confirming that (where financial Thresholds are met) Suppliers and Businesses have submitted a FJC Plan
• including FJC Model Clauses in resulting contracts
• monitoring Supplier or Business commitments related to the FJC Plan

More info

Further information about the Fair Jobs Code can be found on the Buying for Victoria website, including guidelines for Suppliers, Businesses and Victorian Government agencies and copies of model clauses.

Contact our team

If you would like more information about incorporating the FJC into your procurement and funding processes including incorporation of the FJC Model Clauses into procurement and grant agreements please contact.

Alex Murphy, Assistant Victorian Government Solicitor

Sophie Lefebvre, Senior Solicitor