Every business in Australia that employs people could be impacted by significant changes to workplace laws, which come into effect from today.
The changes are part of the “closing loopholes” bill which was passed through Federal Parliament earlier this year.
They include changes to the definition of casual employment and independent contractors, and the introduction of “right to disconnect” laws.
CCIWA Chief Executive, 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.
“Of course, many workers will choose to stay casual because they enjoy the higher hourly rate, but this change builds in an inherent risk for employers when they take on a casual,” Mr Rodwell said.
“This 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.”
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.
“For lots of businesses this change won’t have an impact because they rarely need to contact workers outside of normal hours, but complex businesses or those working across time zones could face significant productivity challenges,” Mr Rodwell said.
“Modern workplaces are more flexible than they’ve ever been, but that flexibility is a two-way street.
“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.”
The change to definition of “employee” and “employer” will also be added to the Fair Work Act, to determine if a worker is an employee or an independent contractor.
“This has the potential to create significant uncertainty for businesses and contractors alike as the new definition will see the contract agreed by both parties become just one of many factors that will use determine the relationship – even if the contractor genuinely wants to be a contractor.”
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.
Mr 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.
“These changes, plus the significant reforms that have already taken effect, reach into every single Australian workplace,” he said.
“It’s vital that all employers know how their business will be impacted.”
