This page summarises the Fair Jobs Code procurement guidelines for government departments and agencies. Access the full text of the Fair Jobs Code Procurement guidelines for government departments and agencies.
The guidelines describe what agencies need to do to comply with the code.
Purpose of the Fair Jobs Code and key points
The Fair Jobs Code demonstrates the Victorian Government’s commitment to ensuring that suppliers tendering for contracts subject to the code are recognised for their commitment to treating workers fairly.
The code requirements apply to applicable tender processes released on or after 1 December 2022, and revisions to the code will become operative on 1 September 2024.
Procurement released to market before 1 December 2022 is not subject to the Fair Jobs Code.
The Fair Jobs Code applies to procurement for:
- goods and services
- construction works
- construction related services.
The Fair Jobs Code applies to procurement valued at:
- $1 million or more (exclusive of GST) – the requirement for a supplier to hold a Fair Jobs Code certificate applies
- $20 million or more (exclusive of GST) - the requirement for a supplier to hold a Fair Jobs Code certificate applies and prepare a Fair Jobs Code plan
In certain circumstances an exception to the Fair Jobs Code may apply.
Special requirements apply for Standing Offer Arrangements, including State Purchase Contracts and Sole Entity Purchase Contracts.
Key requirements of agencies are to:
- include Fair Jobs Code Model Clauses in tender documents
- confirm that suppliers hold a Fair Jobs Code pre-assessment certificate
- confirm that suppliers have submitted a Fair Jobs Code plan
- include Fair Jobs Code Model Clauses in resulting contracts
- monitor supplier commitments related to the Fair Jobs Code plan
- report annually on code compliance and outcomes.
See the following sections of the guidelines for more information:
Key steps to implement the code
Possibility to insource
Agencies are required to consider if the procurement can be insourced.
Pre-assessment certificate
Ensure that suppliers tendering for procurement valued at $1 million or more (exclusive of GST) hold a pre-assessment certificate.
Fair Jobs Code plan
The Fair Jobs Code plan is a proforma document where a supplier sets out how it will deliver on code outcomes including providing secure work.
Ensure that suppliers tendering for procurement valued at $20 million or more (exclusive of GST) submit a Fair Jobs Code plan as part of their tender. If successful, the Fair Jobs Code plan will form part of the contract.
Suppliers of construction works are required to submit a Fair Jobs Code plan addendum.
Monitor Fair Jobs Code plans
Review Fair Jobs Code plans and monitor their delivery throughout the contract.
Compliance and reporting
Attest annually that the agency is compliant with the code.
Provide information to the Fair Jobs Code Unit for reporting and education purposes.
For more information, visit:
- Section 4 of the guidelines
- Monitoring in section 10 of the guidelines
- Compliance and reporting in section 9 of the guidelines.
Pre-assessment certificate
A Fair Jobs Code certificate verifies that the certificate holder complies with laws on:
- industrial relations obligations
- workplace health and safety obligations.
An assessment of the supplier’s compliance with industrial relations and workplace health and safety obligations over the past 3 years is conducted, before a decision is made to issue a certificate.
Suppliers tendering for contracts valued at $1 million or more (exclusive of GST) must hold a valid and current pre-assessment certificate, unless an exemption provision applies.
Subcontractors holding a subcontract directly with a supplier valued at $1 million or more (exclusive of GST), must hold a valid and current pre-assessment certificate, unless an exemption provision applies.
Agencies must confirm that a potential supplier holds a pre-assessment certificate. Current and valid certificates are listed in a publicly accessible register.
Agencies must:
- incorporate Fair Jobs Code Model Clauses into tender documentation
- verify currency of pre-assessment certificates
- incorporate Fair Jobs Code Model Clauses into contracts
- monitor compliance with pre-assessment certificate obligations.
See section 5 of the guidelines for more information.
Fair Jobs Code plan
A supplier sets out how it will comply with Standards 1-5 of the Fair Jobs Code in a Fair Jobs Code plan.
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
Details on each standard are set out in section 6 of the Fair Jobs Code.
Suppliers tendering for contracts valued at $20 million or more (exclusive of GST) must submit a Fair Jobs Code plan or plan addendum as part of their tender. If successful, the plan will form part of their contract.
Suppliers of construction works must submit a Fair Jobs Code plan addendum.
Agencies must:
- incorporate Fair Jobs Code Model Clauses into tender documentation
- verify the Fair Jobs Code plan
- review the Fair Jobs Code plan
- ensure significant subcontractors of $1 million or more have a pre-assessment certificate
- incorporate Fair Jobs Code Model Clauses into contracts
- monitor implementation of the plan.
See the following sections of the guidelines for more information:
Standing Offer Arrangements and supplier panels and registers
Standing Offer Arrangements include:
- State Purchase Contracts
- Sole Entity Purchase Contracts
Under a standing offer arrangement (including State Purchase Contracts, Sole Entity Purchase Contracts, and supplier panels and registers):
- all suppliers tendering for consideration must hold a pre-assessment certificate
- suppliers tendering for contracts with a dollar value of $20 million or more (exclusive of GST) must submit a Fair Jobs Code plan as part of their tender
- a supplier engaged to provide services totalling $20 million or more (exclusive of GST) in aggregate must submit a Fair Jobs Code plan.
The agency may exercise its discretion to determine whether an FJC plan is required at the outset or at the time of reaching the aggregate threshold of $20 million. If the agency determines that a plan is not required at the outset, they should include a requirement in the initial contract to provide an FJC plan within 10 days of the aggregate threshold of $20 million being met.
Agencies must incorporate contract clauses supporting the Fair Jobs Code when:
- creating a new standing offer arrangement
- refreshing a standing offer arrangement
- the master supply agreement is updated.
Under a register arrangement:
- the code applies to suppliers from 1 December 2022
- Pre-assessment certificate will be phased in as a precondition for registers by 1 December 2023.
See section 8 of the Guidelines for more information.
Exceptions to the Fair Jobs Code plan
In certain circumstances an exception to the code may apply.
Use the exception provision only when necessary.
Agencies providing goods, service or works for certain essential services
The Fair Jobs Code does not apply to agencies providing goods, services or works for essential services related to the supply of:
- electricity
- natural gas
- water
- wastewater
- telecommunications.
Emergency procurement
An agency may consider a supplier that does not hold a pre-assessment certificate if the procurement is to:
- protect essential security interests
- avoid the loss of critical services
- prevent critical services from being disrupted
- prevent an imminent risk to health and safety
- avoid life-threatening situations.
The procuring agency needs to determine if the procurement is an emergency before accepting offers from suppliers.
Agencies must report emergency procurements within 20 business days of entering a contract.
Exception for procurement critical to the State’s interest
The Minister may exempt an agency from applying the Fair Jobs Code if:
- the procurement is critical to the State's interest
- suppliers holding a certificate are not suitable or not able to deliver the works, goods or services required for the critical need.
See section 11 of the guidelines for more information.
Governance and complaints management
The Fair Jobs Code Unit receives, investigates and strives to resolve complaints in relation to suppliers that hold a pre-assessment certificate.
The following persons (or their representatives) may make a complaint to the Fair Jobs Code Unit about a supplier that holds a pre-assessment certificate:
- a worker or former worker employed or engaged by the supplier
- a regulator or decision - maker who has made an adverse finding relating to the supplier
- a party to any dispute which resulted in an adverse finding relating to the supplier
- an Agency that has engaged with the supplier in the last 3 years.
See section 13 of the guidelines for more information.
For detail on governance of the Fair Jobs Code, see section 12 of the guidelines.
Support
- Find out more about the Fair Jobs Code.
- Access tools and templates for the Fair Jobs Code.
- Contact the Fair Jobs Code Unit.
Updated