195AInteractions with cash‑related contractual chain orders

195A Interactions with cash‑related contractual chain orders

Notifying the ACCC of interaction with cash‑related contractual chain order

(1) If:

(a) a cash‑related contractual chain order applies (within the meaning in section 536NR of the Fair Work Act 2009) to a designated entity, or will apply to a designated entity when the order comes into operation; and

(b) the designated entity has an obligation (the competing obligation) under any of the following civil penalty provisions of this Act:

(i) subsection 28(1) or (2) (which relate to entering into agreements on approved standard terms);

(ii) subsection 55(1) or (2) (which relate to entering into agreements in accordance with an arbitration determination);

(iii) subsection 67(1) (which relates to failing to comply with a service‑level standard);

(iv) subsection 67(3) (which relates to failing to comply with an ACCC direction to comply with a service‑level standard); and

(c) the designated entity reasonably believes that complying with the competing obligation would cause the designated entity to contravene a term of the cash‑related contractual chain order;

the designated entity must notify the ACCC, in writing, within a reasonable time after forming the belief.

(2) The notice must specify:

(a) the details of the relevant competing obligation and term of the cash‑related contractual chain order; and

(b) the reasons why compliance with the competing obligation would cause a contravention of the term of the order, and the conduct the designated entity considers it would not otherwise be able to engage in as a result; and

(c) the extent to which the designated entity intends not to comply with the competing obligation to prevent the contravention.

Exception to complying with competing obligation in certain circumstances

(3) If:

(a) a cash‑related contractual chain order applies (within the meaning in section 536NR of the Fair Work Act 2009) to a designated entity; and

(b) the designated entity has a competing obligation referred to in paragraph (1)(b); and

(c) complying with the competing obligation would cause the designated entity to contravene a term of the cash‑related contractual chain order; and

(d) the designated entity has given the ACCC a notice relating to the competing obligation and the cash‑related contractual chain order in accordance with subsections (1) and (2);

the competing obligation does not apply to the designated entity, but only to the extent necessary to prevent the contravention of the cash‑related contractual chain order.