In August 2024, Claire Harrison, Managing Director of Harrisons, presented an insightful webinar on the latest updates to the Fair Work Act. This comprehensive presentation covered several key changes that businesses need to be aware of to ensure compliance and maintain a positive workplace environment.
The New Right to Disconnect
One of the significant updates is the introduction of the “Right to Disconnect.” This new provision allows employees to refuse to monitor, read, or respond to contact from their employer outside of working hours unless the refusal is unreasonable. This change aims to promote a healthier work-life balance and reduce burnout among employees. Employers must review their existing terms of employment and ensure that managers are aware of this new right to avoid any potential disputes.
Casual Employees and New Definitions
The Fair Work Act now includes a new definition of casual employment. A casual employee is defined as someone who has no firm advance commitment to ongoing work and is entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract. Additionally, casual employees now have new “pathway” (replacing “conversion”) rights, allowing them to notify a change to permanent employment after six months (or 12 months for small businesses).
Independent Contractors
Changes have also been made to the definition of “employment” for clarification around independent contractors. The new contractor tests consider several factors, including the amount of control over how work is performed, financial responsibility and risk, and the ability to delegate or subcontract work1. Employers must review their independent contractor agreements to ensure they align with the new definitions and legal standards, as well as examining what goes in in practice.
Union Rights and Workplace Delegate Rights
Union representatives now have enhanced access rights, allowing them to request certain documents related to employee conditions. Employers should update their procedures and protocols for union access and ensure their management team is trained on these new rights.
Looking Forward: Criminalising Intentional Wage Underpayments
Starting in 2025, intentional underpayment of wages by employers will become a criminal offence. Employers will commit an offence if they intentionally engage in conduct that results in their failure to pay the required amounts to or for the employee on or before the due date. This change underscores the importance of accurate and timely wage payments.
How Harrisons Can Help
Harrisons is here to support businesses in navigating these changes. We offer services such as reviewing casual contracts, providing guidelines and checklists for union right of entry and delegates, leadership training and conducting award and pay audits. Our team is dedicated to helping you stay compliant and maintain a positive workplace environment.
For more information or assistance, please contact us Harrisons on 1300 001 447.
Claire Harrison is the Founder and Managing Director of Harrisons, a flourishing HR consulting business that sprouted in 2009 from Claire’s passionate belief that inspiring leaders and superstar employees are the key success factor to any business. With over 20 years’ experience, Claire has worked as a HR Director of multi-national organisations, as a Non-Executive Board Director, and a small business owner. Claire’s corporate career includes working with companies such as BHP, Westpac, Fonterra and Mayne Nickless.
