Closing Loopholes 2 – Upcoming August Changes

The next tranche of changes under the Fair Work Legislation Amendment (Closing Loopholes
No. 2) Act 2023 (Cth) are coming into effect as of 26 August 2024. It is imperative that
businesses understand these changes now so that they can adequately prepare for when
the changes take effect.

Definition of Employment - meaning of 'employee' and 'employer'

15AA is a new section that will be inserted into the Fair Work Act 2009 (Cth), defining the
ordinary meaning of an employee and an employer. The section will be utilised when determining whether a worker is an employee or an independent contractor. The wording of the section establishes that the relationship is to be determined by ascertaining the real substance, practical reality and true nature of the relationship between the individual and the person and considering the ‘totality’ of the relationship. Not only the written contract, but also how the contract is carried out in practice, is to be considered

The Right to Disconnect

The right to disconnect operates to entitle an employee to refuse to monitor, read, and
respond to contact or attempted contact from their employer outside of their working
hours, unless the refusal is unreasonable in the circumstances. The right to disconnect
will be a workplace right recognised under the general protections provisions. It will also
be included as a clause in modern awards.

The Fair Work Commission (FWC) will have the ability to determine if the contact is
unreasonable by taking into consideration:

  • The reason for the contact or attempted contact;
  • The frequency and method of the contact and the level of disruption to the employee;
  • Whether the employee has had reasonable remuneration to compensate;
  • The roles and responsibilities of the employee;
  • The employees’ circumstances, including family responsibilities.

Casual Employees

The new definition of casual employment will be as follows:

“A person is a casual employee of an employer if:

  1. the employment relationship is characterised by an absence of a firm advance commitment to continuing and indefinite work; and
  2. the employee would be entitled to a casual loading or a specific rate of pay for casual employees under the terms of a fair work instrument if the employee were a casual employee, or the employee is entitled to such a loading or rate of pay under the contract of employment.”

It is important to note that in some instances casual employees may have access to unfair
dismissal, regardless of whether the employee falls within the above definition or not. If a casual employee has been employed with the business for a minimum of 6 months (or 12 months for small businesses) and has worked a regular and systematic pattern of work, an employee can lodge an unfair dismissal claim. This is because there is a reasonable expectation that the employer will offer the same number of hours each week, and the employee will have a reasonable expectation of ongoing work.

Offers and Requests for Casual Conversion

Post 26 August 2024

A casual employee will remain engaged as a causal employee unless one of the below has occurred,

  • The employment has changed to full-time or part-time through an employee notification,
  • The FWC makes an order,
  • The employment status changes due to a Fair Work instrument
  • An alternative employment has been accepted in another capacity.

Employers are no longer required to make an offer to an employee that meets the
requirements of casual conversion. The process to request to convert to permanent
employment will be made by an employee by way of an employee choice notification.

Employee Choice

A casual employee will be required to give their employer a written notification request
to convert to either a full-time or part-time employee if,

  • The employee no longer believes they meet the requirements of casual
    employee in accordance with section 15A of the Fair Work Act 2009 (Cth),
  • There are no current disputes between the parties about the casual
    employment,
  • The employee has been with the business for at least 6 months (12 months for
    small businesses),
  • 6 months before the notification was given, there was no prior notification provided and not accepted by the employee or had there been a dispute with the employer about the matter which was resolved in line with relevant provisions.

Employer Responsibilities

An employer must provide the employee with a written response within 21 days of receiving a notification to convert. Before responding to the request, the employer has an obligation to consult with the employee, including the terms of acceptance of a request. The response in writing must include if the employer accepts or rejects the notification and the reason/s for the decision. If the employer is accepting the notification, if the employee will be part-time or full-time, the hours of work and when this change will take effect.

Workplace Delegate Rights

A workplace delegate is a person appointed or elected, in accordance with the rules of an
employee organisation, to be a representative for members of the organisation who work
in a particular enterprise.

As of 1 July 2024, the Fair Work Act 2009 introduced new rights and protections for
workplace delegates in relation to the performance of their role.

Workplace delegates have the right to:

  1. Represent the industrial interests of their members and eligible members including in disputes with their employer.
  2. Reasonable communication with members and eligible members in relation to their industrial interests.
  3. Entitlement to reasonable access to the workplace and workplace facilities.
  4. Reasonable access to paid time, during normal working hours, for the purposes of related training (unless the employer is a small business).

The employer of a workplace delegate must not:

  • unreasonably fail or refuse to deal with the workplace delegate; or
  • knowingly or recklessly make a false or misleading representation to the workplace delegate; or
  • unreasonably hinder, obstruct or prevent the exercise of the rights of the workplace delegate under this Act or a fair work instrument.

Helpful Resources

CCIWA’s Changes to Casual Employment information sheet provides more detailed information regarding the changes to casual employees and casual conversion, please see ERAC Information Sheets. 

To find out more information, call the Employee Relations Advice Centre at CCIWA on 08 9365 7660 or email advice@cciwa.com.

Written By Chloe Hutchings – Employee Relations Adviser

CCIWA, Business Law WA and REEFWA has taken all reasonable care in preparing this document. The contents of this document do not constitute legal advice and should not be relied upon as such. Specific advice for your situation should be sought from CCIWA, Business Law WA or a professional adviser before any action is taken. Neither REEFWA, CCIWA nor Business Law WA accept responsibility for any claim that arises from any person acting or refraining from acting on the information contained in this document.

Join REEFWA Today

Member Benefits

“REEFWA are an exceptional corporate body that provides real time advice, advocacy and detailed information on all industrial relations matters pertaining to our industry. They operate with professionalism and personal service. Beneficially for you, they have a broad range of highly experienced personnel that work in the industry and offer years of knowledge.”

Clinton Knop

Join REEFWA Today