The Victorian Public Service Enterprise Agreement 2024 (new Agreement) was approved by the Fair Work Commission on 12 August 2024 and will come into operation on 19 August 2024, with a nominal expiry date of 9 April 2028.

The new Agreement introduces a suite of changes impacting Victorian public service (VPS) employers and employees. We have explained some of the key changes below.

Financial changes

Wage increase

Wages are set to be increased by 3% annually over the 4-year span of the new Agreement. For context, under the previous Agreement, wages increased between 1 and 1.5% annually.

All allowances will also be increased by 3% annually, for example:

• stand-by/recall allowance
• higher duties allowance
• language allowance.

Once off lump sum payment

Employees who are covered by the new Agreement and were employed on 28 June 2024 will receive a once-off payment of $5,600. A pro-rata payment will be made to all part-time and eligible casual employees.

An additional once-off lump sum payment of $1,000 will be made to shift workers, including regular casual employees who perform shift work, who are employed on 1 October 2024.

Fixed term employment

There have been significant changes to the use of fixed term contracts within the VPS.

VPS employers must only use fixed term contracts in prescribed circumstances, including:

• to replace an employee during a temporary absence
• to undertake essential work during a peak demand period or emergency
• for a distinct task involving specialised skills.

Fixed term contracts may only be for a maximum of 3 years, except where a relevant exception applies. Interestingly, this restriction differs from the Fair Work Act 2009 (Cth) (Fair Work Act), which stipulates a 2-year maximum term, noting that VPS employers should also comply with the Fair Work Act provisions.

Examples of circumstances in which a fixed term contract may exceed 3 years include:

• exceptional or unforeseen circumstances
• projects that are funded for a specified period
• where the employee is posted overseas.

Employers must offer employees ongoing employment where they want to engage an employee for more than 3 years, unless there are reasonable business grounds not to do so, or in exceptional and unforeseen circumstances. At least 21 days before a fixed term contract has reached its maximum duration, an employer must inform an employee in writing whether or not it will offer an ongoing role.

Changes to casual employment

The new Agreement updates the use of casual employment to align with amendments to the Fair Work Act. In particular, it adopts a new process of casual conversion, which requires an employer to make an offer of ongoing employment if:

• the employee has 12 months continuous service and has been employed on a regular and systematic basis for at least the last 6 months
• the employee could continue to work as a full-time or part-time employee without significant adjustment,

unless there are reasonable business grounds to not make an offer.

The new Agreement provides for a 6-month transition period in which employers should review the service history of existing casual employees to determine if the new casual conversion arrangements apply.

Entitlement to shift work allowances and overtime

The new Agreement clarifies that casual employees whose rostered ordinary hours of work must include a weekend, public holiday or an afternoon or night shift are entitled to shift work penalties.

Casual employees also become entitled to overtime in certain circumstances, including where they have worked more than 38 hours per week, or on weekends or public holidays. Casual employees who are performing shift work on a regular pattern are entitled to overtime rates where they work more than their rostered hours.

Changes to flexible work

The flexible work regime has been updated to correspond with amendments to the Fair Work Act. The new Agreement provides further guidance on the information an employer must provide an employee when responding to a flexible work request. This includes:

• details of the reasons for the refusal
• the business grounds for refusing the request, and explanation of how those grounds apply to the request
• other changes the employer could make, or explanation that no change can be made
• the employee’s ability to dispute the decision.

The new Agreement also clarifies the circumstances in which employers can refuse a flexible work request. VPS employers may only refuse a flexible work request after discussing the request with the relevant employee and genuinely trying to reach agreement about the requested changes. Employers must have regard to the consequences for the employee if the request is refused. The refusal must be on reasonable business grounds.

Changes to leave

Key changes to leave arrangements under the new Agreement include:

• Employees may take 5 days paid leave where they are unable to work due to a reproductive health-related condition such as pregnancy, endometriosis, or menstruation. Eligibility to take reproductive health and wellbeing leave only accrues where an employee has 15 days or fewer of personal leave
• Employees may take compassionate leave where a child is stillborn, or where the employee or the employee's partner experiences a miscarriage
• Casual employees are entitled to access 10 days paid family violence leave
• Employees may substitute Australia Day for another day of leave without supplying evidence that it would allow them to observe a different religious or cultural occasion
• Employees with chronic health conditions no longer need to provide evidence for each absence related to the condition.

Parental leave

Employees on parental leave will now receive superannuation for up to 104 weeks.

Employees are no longer required to have 3 months continuous service before becoming eligible for paid parental leave.

The previous requirement that only one parent could take parental leave at a time has been removed, so employees can take leave concurrently with their partner (excluding receiving paid parental leave concurrently). The new Agreement also clarifies that shift workers are entitled to be paid shift allowances during parental leave.

Right to disconnect

Following amendments to the Fair Work Act introduced by the Closing Loopholes legislation, a "right to disconnect" has been inserted in the new Agreement. This enables employees to disconnect from work and work-related communications outside of work hours or while on leave. Employees will not be disadvantaged for refusing to attend to work matters outside their working hours unless their refusal is unreasonable. In assessing whether refusal is unreasonable, the following factors must be considered:

• the reason for the contact or attempted contact
• how the contact or attempted contact is made and the level of disruption caused to the employee
• whether the employee is compensated to be available to be contacted or to perform work outside of their working hours, or for working additional hours outside the spread of ordinary hours or their agreed ordinary hours under a flexible arrangement
• the nature and seniority of the employee’s role and the employee’s level of responsibility
• the employee’s personal circumstances (including family or caring responsibilities).

It is important to note that the right to disconnect does not prevent employers from contacting employees in specified circumstances, including to ascertain an employee's availability for rosters or where unforeseeable circumstances arise. The new Agreement specifies that employers are permitted to require employees to perform reasonable additional hours, overtime, standby or to be recalled to duty.

Contact our team

If you have any queries regarding these changes, the VGSO's Workplace Relations and Occupational Safety team is on hand to provide tailored advice for your workplace.

Frances Anderson

Assistant Victorian Government Solicitor, Workplace Relations and Occupational Safety Branch

Email: frances.anderson@vgso.vic.gov.au

Rebecca Best

Lead Counsel, Workplace Relations and Occupational Safety Branch

Email: rebecca.best@vgso.vic.gov.au

Dana Wintermantel

Lead Counsel, Workplace Relations and Occupational Safety Branch

Email: dana.wintermantel@vgso.vic.gov.au

Veronica Belot

Managing Principal Solicitor, Workplace Relations and Occupational Safety Branch

Email: veronica.belot@vgso.vic.gov.au

Kerry Maikousis

Managing Principal Solicitor, Workplace Relations and Occupational Safety Branch

Email: kerry.maikousis@vgso.vic.gov.au