A raft of significant changes to Australia’s workplace laws come into effect today, potentially impacting every business in Australia with employees.
The August 26 changes, part of the Closing Loopholes Bill that passed through Federal Parliament earlier this year, include changes to the definition of casual employment and independent contractors, and the introduction of “right to disconnect” laws.
CCIWA CEO Chris Rodwell said the changes will see Australia’s Fair Work Act increase in size by 50% compared to 2022.
“Not only has the Act grown in size but it’s also more complex, which poses a significant challenge for small and family businesses in Western Australia which don’t have HR departments to manage compliance,” he said.
“And the penalties for getting it wrong are significant – almost $100,000 per breach of these new laws.”
- The changes to the definition of casual employment will allow workers to move from casual to permanent employment after six months, if they are working regular shift patterns. There is also a new “general rule” for defining an employee as casual.
- There is now a new definition to the ordinary meaning of an employee and an employer. This will be used when determining whether a worker is an employee or an independent contractor.
- Businesses with more than 15 employees will be subject to new right to disconnect laws, giving workers the right to ignore work communications outside of standard working hours.
Impact of the changes
Rodwell said the casual employment changes will likely result in employers offering fewer casual positions, or changing the way they roster shifts to avoid the pattern becoming regular.
“The biggest losers from that scenario will be the workers who rely on the extra income from casual work during a cost-of-living crisis, and those who enjoy regular shift patterns to fit around study or caring responsibilities,” he said.
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He said while the right to disconnect laws will not impact a lot of businesses, “complex businesses or those working across time zones could face significant productivity challenges”.
“Modern workplaces are more flexible than they’ve ever been, but that flexibility is a two-way street,” he said.
“The right to disconnect laws risk upending that balance in a way that could damage productivity and potentially lead to reduced flexibility afforded to workers.”
Meanwhile, the definition change of “employee” and “employer” had the potential to create significant uncertainty for businesses and contractors alike.
The new definition will see the contract agreed by both parties become just one of many factors that will be used to determine the relationship — even if the contractor genuinely wants to be a contractor, Rodwell said.
CCIWA provides workplace relations support to thousands of West Australian businesses navigating these changes and has seen a surge in enquiries as a result of the new laws.
Rodwell said it was important for all employers to be aware of their obligations under the new system and seek advice if they are unsure about their arrangements.
Given the extent of the changes, it is recommended that all employers review their employment contracts and policies and procedures.
Find out how CCIWA’s employment lawyers can help you by contacting our legal team on 08 9365 7746, or via [email protected].
