As we begin the new year, it’s a good time to reflect on the significant changes to Australia’s workplace laws. 

Last year there were a number of amendments to the Fair Work Act 2009, affecting employers and employees alike. 

These changes were in areas such as casual employment, the introduction of the right to disconnect and the definitions of employment and independent contracting.

Changes to casual employment 

Casual employment saw significant reform in 2024, with changes aimed at clarifying the employment relationship and improving casual employees’ access to permanent roles.

Redefining casual work

The revised definition of a ‘casual employee’ under the Act focuses on whether there was a firm advance commitment to ongoing work at the start of employment, reinforcing that the contract is no longer king. 

Employees must also be entitled to a casual loading or casual-specific pay rate under their award, agreement or contract—providing greater clarity and consistency in determining casual status.

Casual conversion updates Amendments to the Fair Work Act introduced two pathways for casual conversion:

•    transitional provisions—for employees hired before 26 August 2024, the existing casual conversion rules will apply until 26 February 2025. Employers must offer conversion to permanent employment if eligibility criteria are met or employees may make a request
•    employee choice pathway—for casual employees hired on or after 26 August 2024, the responsibility for requesting conversion lies with the employee.

They can submit a request if they believe their role has become more permanent in nature.

Employers also have a new obligation to provide the Casual Employment Information Statement more frequently. 

It must now be issued at various points during the employment relationship to clarify rights and entitlements, not just at the commencement of employment.

The right to disconnect

The right to disconnect aims to improve work-life balance by protecting employees’ ability to switch off outside agreed hours, especially in roles with constant connectivity. 

It allows employees to refuse to monitor, read or respond to work-related contact from employers or clients outside work hours, unless it would be unreasonable to do so.

Employers are encouraged to implement clear policies on after-hours communication. 

While small businesses face fewer compliance requirements, it is still good practice to adopt policies that support employee wellbeing and productivity.

Key considerations for employers include establishing clear boundaries for when employees can be contacted, ensuring that employees are free from penalties for not responding outside of work hours and encouraging open discussions with employees about expectations for after-hours communication.

The right to disconnect highlights the importance of managing work expectations and fostering a healthy workplace culture. 

It is important to note that this right does not prohibit employers from sending communications outside of working hours; it simply means that employees are not automatically obligated to respond.

New definition of employment and changes to independent contractors

A key change to the Fair Work Act in 2024 is the revised definition of employment, which also affects the classification of independent contractors. 

The update shifts focus from contract terms to the practical reality of the working relationship, particularly control and independence.

While contracts remain relevant, greater emphasis is placed on the day-to-day nature of the relationship, including:

•    practical reality over contract terms—the actual nature of the working relationship takes precedence over contract terms
•    genuine independence—contractors must have genuine control over their work, hours and methods.

These changes reduce ambiguity in non-standard arrangements and emphasise accurate worker classification to avoid penalties.

Employers should review contractor agreements to ensure they reflect the true nature of the work as misclassification can result in significant penalties under updated sham contracting provisions.

Sham contracting

Sham contracting remains a key focus under the updated Act, with stricter rules and increased penalties introduced in 2024. 

It occurs when an employer misrepresents an employment relationship as an independent contract to avoid entitlements like wages, leave or superannuation.

Employers face penalties if they misclassify an employee as a contractor, misrepresent employment status to deny entitlements or disguise employment as contracting while treating workers like employees.

The updated laws prioritise the reality of the working relationship over contract terms.

If a worker is under employer control or integrated into the business, they may still be classified as an employee, regardless of their title or contract.

Further legislative updates

While the following changes may not be as broadly applicable, they are still noteworthy.

Right-of-entry exemption certificates

This change affects union right-of- entry provisions, introducing exemption certificates for particular situations.
Employers should familiarise themselves with these provisions to ensure compliance when dealing with union representatives.

Civil penalties and compliance notices 

The amendments increased civil penalties for noncompliance and strengthened the powers of compliance notices. These changes signal a tougher approach to enforcing workplace laws and highlight the need for businesses to stay up to date with their obligations.

What businesses should do next

Review employment arrangements Audit current employment contracts, agreements and policies to ensure compliance with the updated definitions of employment and casual conversion pathways.

Educate and communicate

Provide training for managers and HR personnel to ensure they understand the changes and their responsibilities.

Update policies and procedures

Revise workplace policies, such as right-to- disconnect guidelines, to align with the new laws and promote a healthy work culture.

Seek expert advice

If employers are unsure about how these changes apply to their business, they should contact the HR advisory service for specific advice.

In summary

The 2024 legislative changes mark a significant shift in how Australian workplace laws address casual employment, work-life balance and worker protections. 

Understanding and implementing these updates is essential for compliance and fostering a workplace that supports both employer and employee needs. 

With careful planning and the right advice, businesses can navigate these changes and prepare for a successful 2025.

Content supplied. The HR in Practice specialist workplace relations and work (occupational) health and safety advisory service is operated by Wentworth Advantage.

For more assistance, contact the HR in Practice Service on 1300 138 954 or hrinpractice@australian.physio

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