As an employer, staying updated on legislative changes is crucial. In August 2024, the Fair Work Legislation Amendment (Closing Loopholes No. 2) Bill 2023 changes will impact employment practices across Australia. Here’s what you need to know:
- 𝗘𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽 𝗗𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗮𝘁𝗶𝗼𝗻
A new approach to determining employment relationships will also take effect on August 26, 2024. The focus will be on the “real substance, practical reality, and true nature” of the relationship. This means considering the totality of the relationship, including how the contract is performed in practice, to ascertain whether an individual is an employee or an independent contractor.
This change overrides recent High Court decisions and reintroduces the multi-factorial test, emphasizing the need for accurate contractor agreements that reflect the true nature of the working relationship. Employers must review these agreements to ensure compliance and avoid misclassification risks.
- 𝗥𝗲𝗱𝗲𝗳𝗶𝗻𝗶𝗻𝗴 𝗖𝗮𝘀𝘂𝗮𝗹 𝗘𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁
Starting August 26, 2024, the definition of casual employees will be revised. A casual employee will be one without a firm advance commitment to continuing work and entitled to a casual loading. This new definition focuses on the practical reality of the employment relationship, assessing factors like work patterns and the ability to accept or decline work offers.
Additionally, casual employees will have the right to request conversion to permanent employment after six months. For small businesses, this right begins on February 26, 2025, requiring 12 months of employment before a request can be made. This change means employees must show ongoing employment justifying their request, eliminating the previous employer obligation to offer conversion under specific conditions.
- 𝗥𝗶𝗴𝗵𝘁 𝘁𝗼 𝗗𝗶𝘀𝗰𝗼𝗻𝗻𝗲𝗰𝘁
Effective August 26, 2024, employees will have the right to disconnect from work communications outside their working hours unless it is unreasonable to do so. This means employees can refuse to monitor, read, or respond to work-related contact after hours. For small businesses, this provision will apply from August 26, 2025.
At WCA Solutions, we are here to help you navigate these changes. For more detailed advice tailored to your business, feel free to contact our team.
