Employers are being warned to brace for a further range of complex and controversial workplace relations changes starting to come into effect, from August.
The changes are part of the Government’s ‘Closing Loopholes’ amendments introduced through its ‘third tranche’ of major changes to Australia’s workplace relations laws.
They relate to issues including wage theft and stronger mechanisms for enforcement of workplace laws, new rules around casual employment and the highly publicized new ‘right to disconnect’, among a suite of other new requirements.
Ai Group’s CEO, Innes Willox, said the changes have significant implications for industry.
“Employers can’t afford to ignore what’s coming,” he said.
“A failure to grapple with what is required to comply with these changes and other new workplace laws could expose employers to serious consequences.
“The changes are underpinned by a range of measures designed to ensure employers seek to comply with Australia’s minefield of complex workplace relations laws. This encompasses changes to introduce criminal penalties for underpayments, along with new powers for courts to impose crippling levels of fines for non-compliance with workplace laws. There are also stronger rights for unions, including a greater capacity for them to enter workplaces without notice and sweeping new entitlements and protections for union delegates.”
The new definition of who can be a ‘casual employee’ will be extremely challenging for employers to navigate. The new provisions are notoriously complex and are intended to limit the circumstances in which a worker can be engaged as a casual. This change will be coupled with enhanced rights for employees who believe they don’t meet this definition to seek conversion to permanent employment and, ultimately, for the Fair Work Commission to issue orders effectively requiring that they be converted if an employer doesn’t agree.
The changes mean employers will have less certainty over when they can employ a casual. Although there are measures that can be taken to help manage the impacts of the amendments, they will undoubtedly mean many employers need to update their current practices.
The ‘right to disconnect’ allows employees to refuse to respond to work-related contact outside of their working hours, provided that their refusal is reasonable. The Fair Work Commission has been given significant new powers to deal with disputes over whether an employee’s refusal is reasonable.
The introduction of the new wage theft offence and related changes mean employers that intentionally underpay workers face significant potential penalties. This includes the prospect of jail terms for individuals and dramatic increases in the level of fines that can imposed on employers. It is vital that employers proactively take steps to ensure they are properly interpreting and applying workplace laws, including any applicable awards or enterprise agreements, ahead of the commencement of these changes.
Businesses using independent contractors need to be aware of new tests for when someone is a contractor or employee and expanded scope for contracting to be challenged in the courts.
Medium to larger sized businesses in particular need to be aware of new obligations to union delegates (also often called shop stewards), including obligations to provide paid time off and access to facilities.
Despite our opposition to many of the recent changes, the Australian Industry Group worked closely with the Government and other members of Parliament throughout the development and passage of the new laws to make them as workable as possible. Crucially, we are continuing to engage with the Fair Work Commission and Fair Work Ombudsman in relation to the implementation of the changes in order to ensure members’ interests a protected.
We’re here to assist our members in understanding and complying with these substantial changes to their employment obligations, with all the changes made in recent tranches of amendments, and with changes to awards and the requirements for enterprise agreements.
Employers are being warned to brace for a further range of complex and controversial workplace relations changes soon to come into effect
New ‘wage theft’ laws create an imperative to ensure you are compliant with notoriously complex workplace relations system.
The definition of casual employment is changing, as are arrangements for casuals to move into part-time or full-time work.
The 'Right to Disconnect' is a new addition to Australia's employment laws. Employers need to know what they can and cannot do when the new law comes into force from 26 August 2024.
Please complete your details below and we will get in touch.
