The latest batch of legislation changes brought about by the Closing Loopholes No.2 Act 2024 are set to come into effect on August 26, but what’s actually changing?
The transport industry will feel the impacts of the new legislation more than most, with new provisions for ‘employee-like’ workers coming into law alongside wider changes like the right to disconnect, changes to the definition of casual employees and pathways to full-time and part-time employment.
The new implementations from the Closing Loopholes No. 2 Act is building on the first part of the legislation, which was implemented in late 2023, and focused largely on tightening policy and law around wage theft.
Regulations of the new additions to the act have already commenced rollout, with February 27 and July 1 both seeing a raft of changes surrounding key issues including wage theft, bargaining agreements and suspected underpayment.
Transport Workers’ Union (TWU) National Secretary Michael Kaine spoke with ATN about the introduction of the new laws.
“Industry consultation is at the heart of these new laws,” Kaine says. “All standards will be subject to a thorough process to ensure they’re informed by industry experts and that we get the balance right.
“Every step of the way there are mechanisms built in to ensure these changes are industry-led and they work in practicality.
“This crisis in road transport has united the industry like never before. The TWU along with employer associations, transport operators and other industry figures campaigned to secure laws which, when they take effect at the end of this month, will be able to begin making this industry fairer and safer.”
“One of the first applications we’ll make is in food delivery, where some of this country’s most exploited workers have no access to a minimum wage, workers’ compensation or leave entitlements. As well as protecting those workers by ensuring a safety net in food delivery, we’ll be ensuring this exploitative model is stopped in its tracks before it can spread further into the industry.
“For too long road transport has been on a dangerous downward spiral. Just this year we’ve seen 128 people killed in truck crashes in Australia, 32 of them truck drivers. Since 2017, 17 food delivery riders have also been killed on our roads.
“We’ll also make applications to rectify unfairly elongated payment times which put pressure on transport operators and owner drivers already on razor-thin margins; setting decent standards in food delivery; and to tackle undercutting in the last mile sector.
“After many years of campaigning from the whole transport industry, these new laws will see a dedicated Road Transport Division of the Fair Work Commission—recognition of the unique dangers and challenges of this industry and the need for significant change.”
‘Employee-like workers’ and the transport industry
The Fair Work Ombudsman defines the term ‘employee-like’ worker as an independent contractor whose work demonstrates certain prescribed employee-like characteristics.
So, what’s the loophole being closed in this space, and what happens next?
The new bill will entitle independent contractors greater workplace protections, when engaged by digital labour platforms, for example, those contributing to the ‘gig economy’ in industries like food delivery.
Key protections that will now be enforcedly mandated for these workers, starting August 26, include:
- Minimum standards: The Fair Work Commission is now empowered to establish minimum working conditions and standards for employee-like workers.
- Unfair deactivation: Employee-like workers who have been performing work through a digital labour platform for a minimum of six months and earn less than the ‘contractor high income threshold’ will be able to make an unfair deactivation claim if they are deactivated. If they are found to have been unfairly deactivated or terminated, they will have access to appropriate remedy including reactivation or payment on account of lost income.
- Collective agreements: Relevant unions or organisations entitled to represent interests of employee-like workers will be able to bargain and enter collective agreements surrounding more favourable working conditions for employee-like workers.
- Extension of delegates’ rights: The right to reasonably access workplace facilities and paid time during working hours to attend workplace delegate duties will now also apply to employee-like workers.
The Right to Disconnect
The implementation of ‘Right to Disconnect’ laws has been a major talking point throughout various Australian industries in recent months and are a key pillar of the Closing Loopholes Act for the wider employment sector, not just transport.
The right to disconnect will take effect across Australia from August 26, 2024, however for small businesses the change will not be implemented until August 26, 2025.
Employees will now have the right to refuse to monitor, read or respond to workplace contact outside of their working hours unless the refusal is deemed to be unreasonable.
Employers and employees alike will be able to seek orders from the Fair Work Commission regarding any disputes that may arise from the new law.
Change in definition to ‘casual employment’
An employee will now be considered to be a casual employee where:
- The employment relationship is characterised by an absence of a firm advance commitment to continuing and indefinite work.
- The employee is entitled under a Fair Work instrument or contract of employment to a casual loading or specific rate of pay for casuals.
The change surrounding the definition as part of the new legislation shifts the focus from whether an employee is strictly defined as ‘casual’ in their contract to the practical employment relationship.
In addition to this, casual employees will now be able to provide written notification to employers if they wish to change their status to permanent full-time or part-time employment if they have been a casual employee for six months. For small businesses, the timeframe is 12 months.
Employers must consult with the employee within 21 days of receiving the written notice to confirm or deny the request, and reasons for any denial must be cited.
This change has put the power to change employment status to the employee, rather than the employer, meaning employers will only be required to act when receiving a written request, as opposed to proactively reviewing their entire workforce.
For all the changes in legislation, policy and regulations surrounding the entire Closing Loopholes Act, click here.
Read more ATN:
Truckies top of Australia Post’s Christmas list
Australia’s first hydrogen prime mover registered
What’s so special about Fortescue’s new haul truck?