Fair Work Act 2009 Direction to Inspectors (November 2021)

Administered by Department of Employment and Workplace Relations

Legislation au F2021L01585 Not in force Legislative Instrument

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REPLACEMENT EXPLANATORY STATEMENT

Fair Work Act 2009 Direction to Inspectors (November 2021)

(Issued by the authority of the Fair Work Ombudsman)

Background

By reason of subsection 700(1) of the Fair Work Act 2009 (FW Act), the Fair Work Ombudsman is empowered to appoint Fair Work Inspectors. Under subsection 704(3) of the FW Act, Fair Work Inspectors, in the performance of their functions or the exercise of their powers as Fair Work Inspectors, are required to comply with directions made by the Fair Work Ombudsman pursuant to subsection 704(1). 

On 22 November 2021 the Fair Work Ombudsman made the Fair Work Act 2009 Direction to Inspectors (November 2021) (Direction) under subsection 704(1) which replaced a previous Direction in the form of Legislative Instrument F2015L01907.

On 14 January 2022 the Scrutiny of Delegated Legislation Committee Secretariat sought information from the Fair Work Ombudsman in relation to any policies incorporated by reference into the Direction. This statement has been amended to provide further information regarding the relevant policy that must be complied with under the Direction, the manner of its incorporation, and how it may be accessed.

Consultation

No consultation was undertaken pursuant to section 17 of the Legislation Act 2003 because the Direction is unlikely to have a direct, or substantial indirect effect on business and is unlikely to restrict competition.

The Direction is technical in nature and does not substantially alter existing arrangements provided for in the FW Act.

The Direction exists to ensure that when commencing or taking any steps in a litigation, that Fair Work Inspectors appointed by the Fair Work Ombudsman, perform their functions and/or exercise their powers in accordance with policies of the Office of the Fair Work Ombudsman and, have obtained the appropriate consent.

Notes on clauses

Clause 1

This clause requires Fair Work Inspectors, before commencing litigation to:

a.        comply with any policy of the Office of the Fair Work Ombudsman concerning commencing litigation; and

b.        obtain the Fair Work Ombudsman’s consent or the consent of a member of staff of the Office of the Fair Work Ombudsman authorised by the Fair Work Ombudsman to give such consent.

The relevant policy for the purposes of this clause is the Compliance and Enforcement Policy.

The Compliance and Enforcement Policy provides information about how the Fair Work Ombudsman performs compliance and enforcement functions under section 682 of the FW Act. An example of this is that the Policy outlines the public interest factors which will be considered before the Fair Work Ombudsman determines to commence (or not commence) litigation.

The Compliance and Enforcement Policy is incorporated by reference into the Direction as at the date the Direction was made.

The Compliance and Enforcement Policy as at the Direction was made can be found on the Fair Work Ombudsman website at: https://www.fairwork.gov.au/about-us/accountability/our-policies.

Clause 2

This clause provides a definition for commencing litigation in Clause 1 of the Direction.

Clause 3

This clause requires Fair Work Inspectors, before taking any steps in a litigation to:

a.        comply with any policy of the Office of the Fair Work Ombudsman concerning litigation; and

b.        obtain the Fair Work Ombudsman’s consent or the consent of a member of staff of the Office of the Fair Work Ombudsman authorised by the Fair Work Ombudsman to give such consent.

As above, the relevant policy is the Compliance and Enforcement Policy.

Clause 4

This clause provides a definition for taking any steps in a litigation in Clause 3 of the Direction.

Clause 5

This clause specifies when the Direction will commence. The Direction will commence on the day that it is registered on the Federal Register of Legislation. 

 

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

(Prepared in accordance with subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011)

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

This Legislative Instrument provides a Direction to Fair Work Inspectors who seek to commence and/or take any steps in a litigation on behalf of the Fair Work Ombudsman. It pertains to the internal administrative arrangements for Fair Work Inspectors taking such action, and is of a general nature.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Sandra Parker PSM, Fair Work Ombudsman

Overview

The Fair Work Act 2009 Direction to Inspectors (November 2021) was issued by the Fair Work Ombudsman under subsection 704(1) of the Fair Work Act 2009, replacing the previous Direction F2015L01907. This Direction was enacted to streamline and ensure compliance with policies within the Office of the Fair Work Ombudsman when Fair Work Inspectors engage in litigation activities on behalf of the Ombudsman. The Direction aims to provide a clear framework for Inspectors to follow, ensuring that their actions align with the Ombudsman’s policies and obtain necessary consents before initiating or proceeding with litigation. No consultation was undertaken as the Direction was deemed unlikely to have significant effects on business or competition. The Direction incorporates the Compliance and Enforcement Policy by reference, which is available on the Fair Work Ombudsman's website and outlines the public interest considerations relevant to litigation decisions. This legislative instrument ensures that Inspectors adhere to internal policies and obtain proper authorisation, thereby maintaining the integrity and effectiveness of the Fair Work Ombudsman's enforcement activities.

Scope and Application

The Fair Work Act 2009 Direction to Inspectors (November 2021) applies to Fair Work Inspectors appointed by the Fair Work Ombudsman. These Inspectors are required to adhere to the Office of the Fair Work Ombudsman's policies and obtain the necessary consents before commencing or taking any steps in litigation. The Direction replaces a previous one and is designed to ensure compliance with the Compliance and Enforcement Policy, which outlines how the Fair Work Ombudsman performs compliance and enforcement functions under the Fair Work Act 2009. The Direction has a national reach, impacting all Fair Work Inspectors operating within Australia. The Direction does not substantially alter existing arrangements provided for in the Fair Work Act 2009 and was issued without consultation as it is unlikely to have a significant effect on business or competition. This Direction will commence on the day it is registered on the Federal Register of Legislation.

Key Provisions

The Fair Work Act 2009 Direction to Inspectors (November 2021) sets out specific requirements for Fair Work Inspectors who are appointed by the Fair Work Ombudsman and who wish to commence or take steps in litigation (Clauses 1 and 3). Firstly, these inspectors must comply with the policies of the Office of the Fair Work Ombudsman, specifically the Compliance and Enforcement Policy, which details the public interest factors considered before litigation is commenced or not (Clause 1(a) and Clause 3(a)). Additionally, Inspectors must obtain consent from the Fair Work Ombudsman or a designated authorised staff member before commencing or taking steps in litigation (Clause 1(b) and Clause 3(b)). These requirements are designed to ensure that Inspectors act in accordance with the Office's policies and that the Fair Work Ombudsman has oversight of the litigation process. The Direction imposes several obligations on the Fair Work Inspectors. These include adhering to the Compliance and Enforcement Policy, which is incorporated by reference into the Direction, and obtaining the required consents before taking any legal action (Clauses 1 and 3). Inspectors must be aware of and follow the policy, which can be accessed on the Fair Work Ombudsman's website (Clause 1 and Clause 3). Failure to comply with these obligations could result in the Inspectors acting outside the scope of their authority or without the necessary oversight, potentially undermining the integrity of the litigation process. There are no specific offences, penalties, or civil/criminal consequences outlined in the Direction itself. However, non-compliance with the Direction by Fair Work Inspectors could lead to disciplinary actions or other consequences as determined by the Fair Work Ombudsman. The Direction ensures that Inspectors act within the bounds of the Office's policies and under the appropriate oversight, thereby maintaining the integrity and effectiveness of the litigation process overseen by the Fair Work Ombudsman.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.