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. Hereโs what you need to know:
- ๐๐บ๐ฝ๐น๐ผ๐๐บ๐ฒ๐ป๐ ๐ฅ๐ฒ๐น๐ฎ๐๐ถ๐ผ๐ป๐๐ต๐ถ๐ฝ ๐๐ฒ๐๐ฒ๐ฟ๐บ๐ถ๐ป๐ฎ๐๐ถ๐ผ๐ป
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.
- ๐ฅ๐ฒ๐ฑ๐ฒ๐ณ๐ถ๐ป๐ถ๐ป๐ด ๐๐ฎ๐๐๐ฎ๐น ๐๐บ๐ฝ๐น๐ผ๐๐บ๐ฒ๐ป๐
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.
- ๐ฅ๐ถ๐ด๐ต๐ ๐๐ผ ๐๐ถ๐๐ฐ๐ผ๐ป๐ป๐ฒ๐ฐ๐
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.
