2024-25
As we look ahead to the latter part of 2024 and beyond,
significant changes in employment law are set to reshape the
landscape for businesses across Australia. This email alert
provides a closer look at the upcoming changes in Part 2 of the
Closing Loopholes legislation following our previous email alert on Part 1.12
Here's what you should know about the upcoming changes:
1. Delegates Rights' Term
Effective Date: 1 July 2024
From 1 July 2024, all 155 modern awards have a delegates rights' term, as per the new requirement enshrined in section 350C of the Fair Work Act.
All enterprise agreements in which employees are asked to vote on, from 1 July 2024, must include a workplace delegates' rights term. If the proposed agreement does not include a delegates' rights term, then the term as per the relevant modern award will be included by the Fair Work Commission in the approval process.
2. Right to Disconnect
Effective Date: 26 August 2024 (non-small business employers); 26 August 2025 (small business employers)
Commencing from August 2024 for non-small business employers and extending to small business employers by August 2025, this initiative grants employees the right to disengage from work-related communications outside of their regular work hours.
This right is subject to a reasonableness test, for example, where there is an emergency the employer can still require the employee to be contactable via appropriate means. This legislation aims to promote work-life balance and mental well-being among employees.
For employers, this means establishing clear policies and practices to respect employees' right to disconnect while ensuring business operations remain efficient and compliant. Proactive communication and training programs will be essential to navigate this change smoothly.
3. New Definitions
Effective Date: 26 August 2024
Alongside the right to disconnect, new definitions of 'employee', 'employer', and 'casual employee' will take effect. These revisions aim to clarify the classification of workers, particularly casual employees, and address longstanding ambiguities that have affected entitlements such as leave benefits and job security.
Employers should review their current workforce classifications against these updated definitions to ensure compliance with the new standards.
4. Casual Conversion Process
Effective Date: 26 August 2024
Under the new 'employee choice' process, casual employees will have the right to request to convert to permanent employment status after the defined qualifying period in the Fair Work Act. Employers no longer have the obligation to offer permanent conversion to qualifying casual employees but they have strict obligations to consult and respond to any casual conversion request that they receive. This change seeks to provide greater job security and benefits to casual workers who desire more stable employment arrangements.
Employers will need to implement processes to facilitate these conversion requests and communicate clearly with eligible employees about their rights under the new legislation.
5. Regulated Labour Hire Arrangements
Effective Date: 1 November 2024
From 1 November 2024, regulated labour hire arrangement orders will come into operation. These measures aim to enhance transparency and accountability in labour hire practices, ensuring that workers engaged through third-party agencies receive fair treatment and employment conditions comparable to direct employees.
Employers utilizing labour hire services should review their existing agreements and practices to comply with the forthcoming regulations. Partnering with reputable labour hire providers and conducting regular audits can also help mitigate risks associated with non-compliance.
6. Enterprise Agreements
Effective Date: 26 February 2025
From 26 February 2025, the Fair Work Commission will revise model flexibility, consultation, and dispute resolution terms for enterprise agreements. These revisions will aim to streamline negotiation processes and enhance workplace productivity.
Employers engaged in enterprise bargaining should anticipate changes in procedural requirements and seek guidance to align their agreements with the updated terms.
Conclusion
As the regulatory landscape evolves, staying informed and proactive will be essential for employers to navigate these upcoming changes successfully. By understanding the implications of the right to disconnect, revised definitions, casual conversion processes, regulated labour hire arrangements, and enterprise agreement terms, businesses can adapt their practices to foster compliance, enhance employee satisfaction, and sustain long-term growth.
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.