The last two years has seen multiple rounds of changes to employment, industrial and safety laws at federal and state level in Australia.
These represent the most significant changes since the Fair Work Act 2009 (Cth) was introduced. The fact that there have been so many different changes to different laws has made it tough to keep up.
Some of the biggest changes will come into effect on Monday, 26 August 2024. The impact won't be felt on day one. But there will be impacts in the future and every business needs to be ready.
"Closing Loopholes" context
Before it was elected, the ALP set out its reform agenda. That included:
- A core focus on "job security": we have seen multiple laws give effect to this by restricting work types other than permanent employment.
- "Get wages moving": we have seen higher costs for business as employee remuneration and benefits have increased.
- "Improve access to collective bargaining": multiple reforms have made it easier for unions to force employers into collective bargaining.
- "Ensure delegates are able to organise": law reforms have given unions more rights to increase representation in more workplaces.
The Albanese government is delivering on its core policy promises. "Closing Loopholes" is the most recent (but probably not the last) significant law change as part of an overall reform package.
If your business has people working in it, it will be affected by these reforms
The overall reforms, including the "Closing Loopholes" changes, affect every business differently. Some simple examples show how every business that has people working in it will be affected (the "Closing Loopholes" specific changes are marked with *):
1. A business with employees of any type:
- Right to disconnect*
- Wage theft & penalty increases*
- Discrimination changes
- Sexual harassment & related unlawful conduct
- Workplace gender equality changes
- Flexible work requests & disputes
- Pay secrecy
- Leave changes
2. A business with casuals:
- Changed definition of "casual" and changed pathways to casual conversion*
- New dispute options*
3. A business with fixed term employees:
- Restrictions on fixed term contracts
- New dispute options
4. A business with independent contractors:
- New "employment" definition and changes to "sham contracting" defences*
- Unfair contracts claims and new minimum conditions for some independent contractors*
5. Labour hire employers / hosts:
- Labour hire loophole*
6. Businesses with unions in the workplace:
- Delegate rights*
- Right of entry changes*
- Bargaining changes including intractable bargaining determination changes*
You can see a concise summary of some of the key ways that these reforms affect arrangements for businesses that have different types of workers here.
What's happening on Monday?
The new right to disconnect commences (for small businesses it is on 26 August 2025).
The new casual employment framework commences.
The definition of who is an "employee" under the Fair Work Act 2009 will fundamentally change.
Independent contractors will have new rights and the FWC can start the process of making minimum conditions for different types of contractors who are "regulated workers" or in a road transport "contractual chain".
The world won't change on Monday. But it will be a fundamentally different landscape for employment and industrial relations in the months and years to come.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.