MPAQ & Citation HR Webinar: Closing Loopholes Bill

Fair Work Legislation Amendment Closing Loopholes No. 2 (‘the Bill’) introduces several fundamental changes in the workplace relations landscape that impact employers in Australia. These will take effect on 26 August 2024:
Casual Conversion
The new Closing Loopholes reform introduces a Bill allowing casual employees to request conversion to permanent employment after 6 months (or 12 months for small businesses with fewer than 15 employees). The Bill provides a new definition of a casual employee and outlines the grounds for rejecting conversion requests. Businesses must ensure compliance with enterprise agreements, modern awards, Fair Work Commission orders, and recruitment laws to manage these requests effectively.
Redefining Casual Employment
The current definition in section 15A of the Fair Work Act 2009 describes a casual employee as someone accepting a job offer with no firm advance commitment to ongoing work or an agreed work pattern. The new Bill changes this to require an 'absence of a firm advance commitment to continuing and indefinite work,' focusing on post-contractual conduct and regular work patterns. The Fair Work Ombudsman will assess factors such as the ability to choose work, future work availability, the presence of full-time or part-time employees doing similar work, and regular work patterns. Employers must consider these factors when categorising employees as casual and seek guidance as needed.
Right to Disconnect
The right to disconnect allows employees to disengage from work-related communications and activities outside their regular working hours, promoting work-life balance and preventing burnout. Employers are expected to respect these boundaries and refrain from contacting employees outside designated working hours unless absolutely necessary.
Changes to Wage Underpayments
Starting January 1, 2025, intentional underpayment of wages by employers will be criminalised under new workplace laws. Employers commit an offense if they knowingly fail to pay wages or benefits due under the Fair Work Act or an industrial instrument by the required date. Exceptions include specific employee categories such as superannuation contributions, long service leave, crime-related leave, and jury duty. Unintentional underpayments or mistakes are exempt. Penalties for companies can reach up to three times the underpayment or $7.825 million, while individuals face up to 10 years in prison or similar financial penalties. The Fair Work Ombudsman will oversee investigations. A Voluntary Small Business Wage Compliance Code will shield compliant small businesses from criminal prosecution. Civil penalties for wage underpayments will also increase for non-small business employers, potentially tripling the underpayment value or matching penalty units for contraventions.
Find out more about these employment legislation changes and how it can affect your business by joining this webinar led by MPAQ and Citation HR.