Closing Loopholes Changes To Workplace Law

As part of the Closing Loopholes reforms there are changes to the Workplace Laws which will commence on 26th August 2024. They include changes to Casual Employment and a New Right to Disconnect.

Changes to Casual Employment:

The amendment makes a clearer definition of the term “Casual Employee”. The new definition will allow parties to consider the practical reality of their employment relationship, not just what is stated in their employment contract.

Employees who have worked for at least 6 months (12 months in a small business) will now be able to choose to notify their employer they believe they no longer meet the definition of a 
“casual employee”.

Employers will then have 21 days to respond to an employee’s notification, either choosing to convert the employee to full-time or part-time employment or give the employee reasons why the notification is not accepted.

Listed below are some definitions employers can consider when choosing to change their casual employees classification:

• The employer can choose to offer (or not offer) work to the employee and or whether the employee can choose to accept to reject an offer of work;
• Whether continuing work is reasonably likely to be available given the nature of the business;
• Whether part-time or full-time employees are undertaking similar roles in the same workplace;
• Whether the employee has a regular work pattern.

What do these changes Mean?

Changing employment status from casual to permanent, be it part-time or permanent will only happen when the employee wants it to change. Should the employee want to remain as a casual employee nothing with force them to become permanent.

As for employees who are effectively working as a permanent employee, they will now have clear and simple way to choose to change their employee status to permanent, bearing in mind the employee will no longer be entitled to the casual wage loading and will instead receive paid leave entitlement and job security.

Right to Disconnect

This new amendment will now give employees the right to not respond to contact from their employer outside of their working hours, unless doing so is unreasonable. The right to disconnect does not prohibit employers from contacting their employees, nor does it prohibit employees from contacting one another including cross time zone.

The amendment allows employees to freedom to be able to refuse to monitor, read or respond to contact, outside working hours, when they are not being paid to work or expected to be working.

Rules will apply to determine whether an employee’s refusal to respond to contact with their employer are unreasonable:

__some examples are: __

• The method of contact and level of disruption it causes the employee
• The nature of the employee’s role and the employee’s responsibilities
• The reason for the contact and attempted contact
• The employee’s personal circumstances, this includes family or caring responsibilities
• Whether the employee is being compensated to remain available or to perform additional work outside of ordinary work hours.

The Modern Award will include a right to disconnect effective from 26th August 2024. However, for Small Business Owners the Right to Disconnect will not come into effect until 26 August 2025.

The Right to disconnect will encourage employers and employees to talk about contacted out of normal working hours and set expectations that suit the workplace and particular roles in the workplace. The Right is about making sure employees feel comfortable in switching off to enjoy downtime away from work.

The Fair Work Ombudsman will provide tailored support, and the Commission will issue guidelines which will help particularly small businesses to understand the changes.

The contents of this article are general in nature. For advice specific to your circumstances, please contact your legal practitioner.

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