From today (Monday 26 August), the Albanese Government's world-leading Closing the Loopholes legislation comes into effect, helping Australians earn more, have more secure work and be safer in their workplace.
The new laws will give workers greater protections around workplace conditions, job security, and their ability to balance work and life, as well as stopping the underpayment and undercutting of Australian workers' pay and conditions.
Today marks the start of another round of the Albanese Government's workplace reforms that are ensuring Australians are earning more, to assist them deal with cost of living pressures.
Changes starting today include:
- A right to disconnect outside of paid work hours;
- A fair definition of a casual employee;
- A fairer test for determining whether a person is an 'employee' or an 'independent contractor';
- New 'regulated worker' functions for the Fair Work Commission, including setting minimum standards for 'employee-like' workers in the gig economy, and minimum standards for the road transport industry.
This stands in stark contrast to Peter Dutton and the Coalition, who have launched an attack on workers' rights by voting against our Secure Jobs, Better Pay bill, and have already promised to overturn our right to disconnect and casuals reforms as part of a "targeted package of repeals".
Right to disconnect
Eligible workers now have the right to disconnect.
They are legally protected from responding to contact outside their working hours unless it would be unreasonable not to do so.
Minister for Employment and Workplace Relations Senator Murray Watt said unless workers were being paid, they should not be expected to monitor, read or respond to contact.
"Clocking off used to mean something in this country," Minister Watt said.
"It meant time with your kids, time with your friends or just time to yourself to relax.
"But technology has changed how many Australians work.
"Many workers feel pressured to remain connected to their emails and calls long after they have finished their workday.
"It should not be controversial that workers shouldn't be required to do unpaid overtime.
"The right does not prohibit employers or employees contacting one another.
"It just means, in most circumstances, an employee does not need to respond until they are back at work."
The right to disconnect will apply to employees in medium and large businesses from today.
It will start for employees of small businesses in 12 months' time.
Definition of casual employees
Casual employees can now choose to seek permanent employment after 6 months, or 12 months for small business employees, if they no longer believe they meet the definition of a casual employee.
An employer can refuse to accept this in certain circumstances, including where there are fair and reasonable operational grounds to do so.
"If a worker wants to remain a casual employee, that's a legitimate choice."
"But we know some workers want more job security.
"Our reforms mean the 'permanent casual' rort, which denied workers their rights, is over.
"Businesses can still hire casuals to meet their needs in the same way they always have.
"But casuals working like permanent employees will have a clearer pathway to permanency and the job security this provides if they want to."
Definitions of employee and employer
Changes from today will ensure a fairer test applies when determining if a person is an employee or an independent contractor.
This means all parts of the working relationship between the parties will be considered, instead of just the written terms of the contract. This will help prevent sham contracting arrangements in which the written contract is entirely inconsistent with the reality in the workplace.
"Whether a person is an employee should be determined by the true nature of the relationship," Minister Watt said.
"This change does not in any way require genuine independent contracting relationships to become employment relationships. It is a return to how Australian workplace law operated for decades."
World-leading minimum standards
From today the Fair Work Commission can, for the first time, set tailored minimum standards for 'employee-like' workers in the gig economy.
The Fair Work Commission can also consider minimum standards for certain contractors in the road transport industry.
These reforms have been driven by industry and unions.
To make sure they continue to drive standards for the road transport sector, the new laws include a Road Transport Advisory Group to support the Fair Work Commission.
The government has appointed Mr Peter Anderson, National Secretary of the Australian Road Transport Industrial Organisation and Mr Richard Olsen, Vice President of the Transport Workers' Union to the Advisory Group.
Mr Anderson and Mr Olsen bring extensive industry experience to their roles and will work cooperatively through a range of industry subcommittees to support the Commission to set standards that ensure the industry is safe, sustainable and viable.
The Commission must undergo a comprehensive consultation process before it can set binding standards, ensuring genuine engagement with affected parties.
"This is world-leading legislation that the Albanese Government has introduced," Minister Watt said.
"The Commission's new powers will ensure gig workers, such as those in rideshare, food delivery and care work, no longer fall through the cracks.
"Any unscrupulous provider using worker safety to jack up prices is on notice.
"Rideshare and food delivery workers shouldn't have to choose between safety and getting paid.
"Industry stakeholders have called for road transport reform, and the government has acted."
