The Fair Work Act Amendments: What is changing this month?

As part of its 'Closing Loopholes' legislation, the Australian Government is making significant amendments to the Fair Work Act to strengthen protections for workers. Fair Work Ombudsman Anna Booth encourages all stakeholders in workplaces to fully comprehend the extent and timing of these adjustments before they're directly impacted.

“Employers, employees and independent contractors need to understand the changes, which create new or changed responsibilities and rights in a range of areas,” Ms Booth said.

Source: Fair Work Ombudsman

Here’s a brief overview of what is changing from 26th August 2024:

Casual employment changes:

Under this legislation a new definition has been introduced to the term ‘casual employee’. From 26 August 2024, an employee is casual only if:

There isn’t a firm advance commitment to continuing and indefinite work, considering several factors, including the real substance, practical reality, and true nature of the employment relationship

They're entitled to receive a casual loading or specific casual pay rate.

Source: Fair Work Commission

Additionally, a new pathway for eligible casual employees to change to permanent employment is also defined in the new legislation. Under this, employees can notify their intention to change to permanent employment if they:

Have been employed for at least 6 months (12 months if working for a Small Business)

No longer meets the criteria mentioned in the new casual employee definition

Learn more about casual employment changes and how they might affect you below:

CASUAL EmPLOyment Changes

Changes to Independent Contractors:

Under the new rules, a new test will be applied to independent contractor working relationships. Whereas the previous method relied heavily on the written terms on the contract, now the practical reality of the working relationship will be a key determining factor as to whether the relationship is truly that of an independent contractor.

The commission will also set minimum standards for independent contractors particularly for 'employee like workers’ in the gig economy and those working in the road transportation industry.

Read more about the independent contractor changes taking effect below:

Independent Contractor Changes

Right to Disconnect:

Eligible employees will have the right to refuse all types of work-related communication outside of work hours unless that refusal is unreasonable. This means they can refuse to be monitored, to refuse to read or respond to work-related emails, or to answer calls outside of working hours. However, this does not apply to on-call work, managers communicating across time zones and small business employers.

Factors that determine whether an employee’s refusal is unreasonable:

Reason of contact

Compensation for the employee for working outside their ordinary hours of work

Role and level of responsibility of the employee

Personal circumstances of the employee

Learn more about this legislation below:

Right to Disconnect

Rights of Workplace delegates of regulated workers:

Workplace delegates representing regulated workers will also be protected under the rights and protections for workplace delegates under the Fair Work Act. These delegates will have the authority to advocate for the industrial interests of regulated workers, including representing them in disputes with regulated businesses. They will also be entitled to reasonable communication with members and access to workplace facilities provided by the regulated business for representation purposes.

Regulated business will be expected to comply with the terms of delegates’ rights outlined in the minimum standards order. Furthermore, they will be prohibited from taking actions against workplace delegates who are also regulated workers under services contracts.