Welcome to our newsletter covering the significant reforms to the Fair Work Act 2009 (Cth) brought about by the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024. These reforms, designed to enhance fairness and clarity in employment relationships, are now in effect.
1. Casual Conversion
Clear criteria now define casual employment, with casuals eligible to request conversion to permanent status after 6 months (12 months for small businesses), promoting job security and leave entitlements. Exceptions apply.
More information located here: Becoming a permanent employee
2. Right to Disconnect
Employees now have the right to disconnect from work-related contact outside of working hours, effective from 26 August 2024 (2025 for small businesses). This protects employees from unreasonable contact and ensures their work-life balance.
More information located here: Right to Disconnect
3. New definitions of 'Employee' and 'Employer'
An amended definition focuses on the true nature of work relationships, offering a fair assessment for contractors and employers. Workers can opt-out of employee status under certain conditions.
More information located here: Definition of Employment
4. Minimum standards for 'Employee-like Workers'
The amendment empowers the Fair Work Commission to set minimum standards for digital platform workers, ensuring fair payment terms, dispute resolution, and consent-based agreements.
More information located here: Minimum Standards for Employee-like Workers
5. Right of Entry for Investigations
Union officials have enhanced rights to investigate underpayments, ensuring fair labour practices and protecting workers from improper behaviour.
More information located here: Right of Entry
Courts can impose higher penalties for contraventions, particularly against companies. Additionally, a new jurisdiction is set to be established within the Fair Work Commission. This new jurisdiction will specifically address disputes regarding unfair contract terms between contractors and principals, aiming to promote fairness and transparency.
These reforms signify a significant step toward fair and equitable workplaces, protecting the rights of both employees and employers.
Impact on employers:
Employers are encouraged to review existing employment contracts, policies, and procedures to ensure robust measures are in place to accommodate these changes.
How IgniteHR can assist:
IgniteHR offers a comprehensive range of services aimed at assisting businesses in identifying areas for improvement and ensuring alignment with evolving legal requirements. Our team comprises seasoned professionals who specialise in fostering a compliant and proactive workplace. We understand the complexities and challenges that businesses face in today?s dynamic regulatory landscape, and we are committed to helping our clients navigate through these challenges effectively.
Talk to us to understand your obligations