Starting August 26, 2024, there are significant updates to how independent contractors are defined and protected under the Fair Work Act. These changes could impact how you classify and manage your workforce, so it's essential to understand what’s coming. Redefining Employment: What’s New? A new definition is being introduced to help clarify who is considered an ‘employee’ and who is an independent contractor. The focus will now be on the actual working relationship rather than just the terms written in the contract. This means: The practical reality of how the work is performed will be considered, not just what’s written on paper. The nature of the relationship between the worker and the business will be closely examined. This change could lead to some working relationships being reclassified, which might alter the rights and obligations of those involved. If the terms of your contract don’t match the actual work arrangement, it’s time to review them. Opt-Out for High Earners There’s an important option for contractors who earn above a certain threshold (yet to be determined). These high-earning contractors can choose to ‘opt out’ of the new definition of ‘employee’ and ‘employer’ through a simple notification process. As an employer, you can offer this option if you believe a worker might be misclassified under the new rules. Remember, a contractor can revoke their opt-out notice at any time, so staying on top of these communications is crucial. Sham Contracting: Tightened Defenses As of February 27, 2024, the rules around sham contracting have been strengthened. Sham contracting occurs when an employer wrongly classifies an employee as an independent contractor to avoid certain obligations. The defense against claims of sham contracting has shifted from a ‘recklessness’ test to a ‘reasonableness’ test. Now, to defend against a sham contracting claim, you must prove that, at the time of engagement, you had a reasonable belief that the worker was a genuine contractor. This change makes it more challenging to defend improper classifications, so it's important to be diligent in how you categorise your workers. Unfair Terms in Contracts: New Protections for Contractors Starting August 26, 2024, contractors will have the right to challenge unfair terms in their contracts. If a contractor believes that their services contract contains unfair terms, they can apply to the Fair Work Commission for a review. The Commission will have the authority to modify, set aside, or amend contracts with unfair terms. However, this protection won’t apply to contractors who earn above the contractor high income threshold. These high earners will need to seek remedies through the Independent Contractors Act 2006 if they believe their contracts are harsh or unfair. Setting Minimum Standards for Contractors New frameworks are also being introduced to set minimum standards for certain independent contractors, particularly those working on digital labor platforms (like gig economy workers) and those in the road transport industry. These changes aim to provide better protections and fairer working conditions for contractors in these sectors. What You Should Do Next Review Contracts:  Ensure that the terms of your contracts accurately reflect the working relationships and comply with the new definitions. Educate Your Team:  Make sure that those responsible for managing contracts and hiring understand the new requirements and how they affect your business. Prepare for Opt-Out Notices:  Have a process in place to handle opt-out notices from high-earning contractors. Stay Informed:  Keep up to date with the latest information from the Fair Work Commission and adjust your practices as necessary. These changes are designed to bring more clarity and fairness to contractor arrangements, but they also mean that employers need to be more vigilant in how they classify and manage their workforce. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

Starting August 26, 2024, a new workplace law will take effect that grants eligible employees the "right to disconnect" outside of their working hours. This change could have a significant impact on how you manage employee communication and expectations. Here’s what you need to be aware of and how to prepare. What is the Right to Disconnect? From August 26, 2024, for larger businesses (and from August 26, 2025, for small businesses), eligible employees will gain the right to disconnect from work outside of their official hours. This means that employees can refuse to monitor, read, or respond to any work-related contact from their employer or third parties once they’ve clocked out, unless their refusal is deemed unreasonable. This right also covers any attempts to contact the employee outside their working hours. When is Refusal Considered Unreasonable? Determining whether an employee’s refusal to stay connected is unreasonable will depend on several factors: Reason for Contact:  Why the contact is necessary. Nature of the Contact:  How the communication is made and its potential disruption to the employee. Compensation:  Whether the employee is paid or compensated for being available or for working beyond their standard hours. Role and Responsibility:  The employee’s position and level of responsibility within the company. Personal Circumstances:  Including the employee’s family or caregiving duties. These are not the only factors—other considerations may come into play depending on the specific situation. Awards and the Right to Disconnect By August 26, 2024, all industry awards must include a ‘right to disconnect’ provision. This means that awards will be updated with specific rules that explain how this new right will apply to different sectors and job types. It’s essential to stay informed about how these changes will affect your industry. Handling Disputes Disputes over an employee’s right to disconnect should first be addressed at the workplace level. If a resolution isn’t possible internally, either party—employee or employer—can bring the issue to the Fair Work Commission. The Commission has several tools at its disposal, including: Issuing a stop order to prevent further contact. Facilitating discussions or holding a conference to resolve the dispute. Using a combination of the above methods. Understanding the Role of the Fair Work Ombudsman vs. the Fair Work Commission It's important to clarify that the Fair Work Commission is the national workplace relations tribunal, handling disputes and regulating registered organisations. On the other hand, the Fair Work Ombudsman provides advice and assistance on workplace laws. Protections Under the Right to Disconnect The right to disconnect will also be recognised as a workplace right under general protection laws. These protections ensure that all employees have specific rights under the Fair Work Act, which must be respected by employers. Action Steps for Employers Review Communication Policies:  Update your internal policies to reflect the new right to disconnect and ensure all employees are aware of their rights and responsibilities. Adjust Work Expectations:  Consider how this new law might impact roles that traditionally involve after-hours contact and develop strategies to manage these changes effectively. Prepare for Award Updates:  Stay informed about changes to awards that apply to your industry and ensure compliance with the new requirements by the deadline. Manage Disputes Proactively:  Develop a clear process for handling disputes related to the right to disconnect to avoid escalation to the Fair Work Commission. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.  Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.  No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.  email us now at hr@esshr.com.au

As of August 26, 2024, new laws are coming into effect to protect the interests of certain workers in the gig economy, particularly those in the road transport industry. If your business engages independent contractors in these sectors, here’s what you need to know. Who Will Be Impacted? These new regulations primarily affect independent contractors classified as: ‘Employee-like workers’ : Contractors performing digital platform work in the gig economy. Road transport industry contractors : Individuals working within the road transport sector. These contractors are now considered ‘regulated workers,’ and businesses engaging them will be classified as ‘regulated businesses.’ Additionally, the new laws will impact any independent contractors involved in a ‘road transport contractual chain’ and other individuals within that chain. Eligibility Requirements To be classified as a regulated worker, contractors must meet certain criteria: They must be a party to a services contract, either individually or as part of a corporate entity, trust, or partnership. They should perform the majority of the work under this contract. They must not perform any work under the contract as an employee. These changes apply only where there is a ‘constitutional connection,’ such as when work is performed under a contract with a constitutional corporation. Introduction of ‘Employee-Like Workers’ Starting August 26, 2024, or earlier if determined by the government, the Fair Work Commission will gain new powers to cover certain independent contractors in the gig economy, identified as ‘employee-like workers.’ To meet this classification, a contractor must satisfy at least two of the following criteria: They have low bargaining power in contract negotiations. They are paid at or below the rate of an employee performing similar work. They have limited authority over how their work is performed. Any other characteristics prescribed by future regulations. Changes for Road Transport Industry Contractors For those in the road transport industry, new rules will also take effect on August 26, 2024. Contractors in this sector, termed ‘regulated road transport contractors,’ will be subject to specific regulations, particularly concerning the structure of contractual chains. A road transport contractual chain  involves multiple contracts or arrangements between businesses and workers performing the same task, like delivering freight. The new laws extend the Commission’s powers to everyone involved in these chains, including contractors and ‘employee-like workers.’ Setting Minimum Standards The Fair Work Commission will have the authority to set minimum standards for ‘employee-like workers’ and road transport contractors through: Minimum standards orders : Legally binding and enforceable with penalties for non-compliance. Minimum standards guidelines : Non-binding but still influential. These standards may cover aspects such as payment, deductions, and insurance, while additional guidelines might address matters like payment terms, fuel levies, and contract terminations. Collective Bargaining Rights The new laws also expand collective bargaining rights for ‘employee-like workers’ and regulated road transport contractors. These workers can now enter into collective agreements with digital platform operators or road transport businesses, setting terms and conditions much like enterprise agreements. Unfair Deactivation or Termination From August 26, 2024, the Fair Work Commission will handle disputes regarding the unfair deactivation of ‘employee-like workers’ from digital platforms or the termination of road transport contractors’ contracts. However, contractors earning above a certain income threshold won’t be eligible to apply. Rights of Workplace Delegates Regulated workers will gain the right to be represented by workplace delegates, who can advocate for their industrial interests. Regulated businesses will be prohibited from taking adverse actions against these delegates. Advisory Groups and Resources To support the implementation of these changes, new advisory groups will be established, including: Regulated Worker User Group : To connect with and inform regulated workers and businesses. Expert Panel and Road Transport Advisory Group : To advise on and manage matters related to the road transport industry. What Employers Should Do Next Review your contracts : Ensure they comply with the new definitions and standards. Prepare for collective bargaining : Understand how these changes might affect your negotiations with contractors. Stay informed : Keep up to date with the Fair Work Commission’s guidelines and minimum standards orders. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

On August 26, 2024, significant changes to the Fair Work Act will take effect, introducing a new definition of ‘casual employee.’ As an employer, it’s crucial to understand how these changes impact your obligations and practices. Here’s a breakdown of what you need to know and prepare for. Understanding the New Casual Employee Definition Under the new definition, a person will be classified as a casual employee if: There is no firm advance commitment to ongoing work, based on several specific factors. The employee receives a casual loading or a specific casual pay rate as outlined in an award, registered agreement, or employment contract. What This Means for Existing Casual Employees For employees hired as casuals before August 26, 2024, they will continue to be recognised as casuals under the new definition unless they transition to permanent employment. Ensure you review the existing casual employee definition and how it applies to your current workforce. Managing Casual Employees Hired After August 26, 2024 For casuals employed from August 26, 2024, the new definition will automatically apply. These employees will retain their casual status unless their employment is converted to permanent through: The casual conversion process or a Fair Work Commission order, or Acceptance of a new employment offer under different terms. Key Considerations for Employers: Firm Advance Commitment The concept of a firm advance commitment is central to determining casual status. As an employer, you need to assess this commitment by considering: The true nature of the employment relationship and its practical realities. Whether you offer work on a regular basis and if the employee can accept or decline work. The likelihood of future work availability and whether similar roles in your business are filled by full-time or part-time employees. The employee’s work pattern, even if it changes over time due to reasonable absences like illness or leave. Remember, no single factor is decisive, and not all factors need to be met to classify someone as a casual. For instance, a regular pattern of work doesn’t automatically imply a firm advance commitment to ongoing employment. Contracts and Employment Relationships When assessing casual status, it’s important to look at the employment contract and any mutual understanding or expectations between you and your employee, even if they aren’t explicitly stated in the contract. These understandings can be inferred from how the contract is performed and the behaviour of both parties after the contract is signed. Example Scenario: Casual Employment in Action Consider Tom, a hospitality worker at a summer pop-up bar. Each week, you offer him a roster, and he decides which shifts to accept. Despite having a regular pattern of work, Josh remains a casual employee because there’s no firm advance commitment to ongoing work, and he receives a casual pay rate. Fixed-Term Contracts for Casual Employees You can generally employ casuals on fixed-term contracts, but there are specific exceptions, particularly in the higher education sector. Ensure that your contracts comply with these rules to avoid potential disputes. Casual Conversion: Pathways to Permanent Employment From August 26, 2024, a new pathway will allow eligible casual employees to convert to full-time or part-time (permanent) status if they choose. This new process will replace the current casual conversion rules, so make sure you’re familiar with the updated requirements. Updating Awards and Casual Employment Terms The Fair Work Commission is reviewing changes to awards as a result of these new casual employment rules. Stay informed about these updates to ensure your business remains compliant. Obligations to Provide the Casual Employment Information Statement (CEIS) Starting August 26, 2024, you must provide the Casual Employment Information Statement (CEIS) to all new casual employees before or as soon as they start work. Additionally, the CEIS must be provided at regular intervals throughout the employment relationship. Avoiding Sham Arrangements To prevent the misuse of casual employment arrangements, new protections will be in place from August 26, 2024. It will be illegal to: Misrepresent casual employment terms to convince a full-time or part-time employee to switch to casual employment. Dismiss or threaten to dismiss an employee to rehire them as a casual for the same or similar work. Courts will have the power to impose substantial penalties for violations, with fines up to $93,900 for individuals and $469,500 for businesses. Action Steps for Employers Review and update your employment contracts and practices to align with the new casual employee definition. Ensure you understand the casual conversion process and are prepared to manage requests from eligible employees. Regularly update the Casual Employment Information Statement provided to casual employees to ensure compliance. Avoid any practices that could be considered sham arrangements to protect your business from legal penalties. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Starting from 1 July 2024, the superannuation guarantee (SG) rate will increase from 11% to 11.5%. This change means more money in your employees super account, helping for a more comfortable retirement. What you need to know Some payroll platforms will automatically apply this update. Ensure your payroll platform has been updated to apply 11.5% from as of 1 July to all employee earnings (ordinary time earnings) On 1 July 2024, the concessional contribution cap (s uperannuation contribution made before tax) is increasing from $27,500 to $30,000 per person, per financial year. On 1 July 2024, the non-concessional contribution cap ( the maximum amount of after-tax contributions you can contribute to your superannuation each year without facing extra tax) is increasing from $110,000 per person per financial year to $120,000. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Big changes are here! Starting 1 July 2024, new rules for right of entry permits and exemption certificates are shaking things up. Here’s what you need to know: Right of Entry Exemption Certificates These certificates allow permit holders to skip the required notice for a permitted visit when investigating a suspected breach of the Fair Work Act. The Fair Work Commission (the Commission) will issue these certificates under specific conditions: If there's a suspected underpayment of a union member. If giving advance notice would hinder an effective investigation. The Commission can also put conditions on these permits and certificates to ensure they’re used lawfully and protect permit holders from improper conduct. Workplace Delegates – New Rights from 15 December 2023 Workplace delegates, who are employees elected or appointed to represent members of their organisation, now have new rights and protections, including: Representing members' industrial interests , even in disputes. Reasonable communication with members about their industrial interests. Access to the workplace and facilities to represent these interests. Paid time during normal working hours for training (for delegates in non-small businesses). Upcoming Changes to Awards and Agreements From 1 July 2024, all awards, new enterprise agreements, and workplace determinations must include a delegates’ rights term. New Rights for Workplace Delegates of Regulated Workers – Effective 26 August 2024 Starting 26 August 2024, new rights extend to workplace delegates representing union members who are regulated workers. These include: Representing the industrial interests of regulated workers. Reasonable communication and access to workplace facilities. Protection from unreasonable actions by regulated businesses. Example: Lisa the Workplace Delegate Lisa works for a construction company and is elected as a union delegate. She wants to hold a meeting to discuss collective bargaining but finds is instructed by her manager that she cannot meet with the union on the worksite in work time. This action is a breach of Lisa's rights as a workplace delegate and is unlawful. Changes for Registered Organisations – Effective 27 February 2024 New laws restore the requirement for demerger applications by amalgamated registered organisations (like unions) to be made within 2 to 5 years after amalgamation. Plus, there are some technical tweaks to the demerger processes. The Commission continues to be the regulator for registered organisations. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

With the introduction of the Secure Jobs Better Pay Act, Closing Loopholes Act, and Closing Loopholes No. 2 Act, the way employers and employees negotiate and finalise agreements is evolving. Here’s a breakdown of what you need to know: 1. Delegates’ Rights Term Starting 1 July 2024, all agreements must include a delegates’ rights term, ensuring workplace delegates have the rights outlined in section 350C of the Fair Work Act 2009 (Cth). If the term in your agreement is less favourable than that in a modern award, the award term will apply. 2. Genuine Agreement Changes Effective from 6 June 2023, new principles ensure that employees genuinely agree to enterprise agreements. Employers must follow a Statement of Principles to confirm that employees have a sufficient interest and are representative of the agreement's coverage. 3. Better Off Overall Test (BOOT) For agreements made on or after 6 June 2023, the BOOT is getting a makeover! The Commission can amend or reconsider agreements to ensure they pass the BOOT, considering an assessment of whether employees are better off under the enterprise agreement than the modern award. 4. Multi-Enterprise Agreements From 6 June 2023, there are three types of multi-enterprise agreements: Supported bargaining agreements Single interest employer agreements Cooperative workplaces agreements Before requesting a vote on a multi-enterprise agreement, employers need written agreement from all relevant employee organisations or a voting request order from the Commission. 5. Transitioning Agreements Starting 27 February 2024, employers can transition from a supported bargaining agreement or a single interest employer agreement to a single enterprise agreement before its nominal expiry date. Written agreement from all relevant employee organisations or a voting request order is required before requesting a vote. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Changes Effective from 26 August 2024 We’re shaking things up in the world of casual employment with some important updates to the Fair Work Act. Here's what you need to know: What Makes a Casual Employee? Under the new definition, an employee is considered casual if: There’s no firm advance commitment to ongoing and indefinite work, taking into account factors like the real substance and true nature of the employment relationship. They’re entitled to receive a casual loading or specific casual pay rate. Casual employees will stay casual until their status changes through: A conversion process or Fair Work Commission order, or Accepting an alternative employment offer and starting work on that basis. Existing casual employees as of 26 August 2024 will retain their casual status unless they transition to permanent employment. Firm Advance Commitment Whether there's a firm advance commitment to continuing and indefinite work depends on: The real substance, practical reality, and true nature of the employment relationship. Additional factors such as whether: The employer can offer or not offer work to the employee. The employee can accept or reject work. It's reasonably likely there will be future work available. Full-time or part-time employees are performing similar work. The employee has a regular pattern of work. Fixed-Term Contracts Casual employees can generally be hired on fixed-term contracts, except for: Academic or higher education teaching staff covered by specific awards and not state public sector employees. Casual to Permanent Employment (Casual Conversion) Starting 26 August 2024, eligible casual employees can notify their employer of their intention to change to permanent employment if: They’ve been employed for at least 6 months (or 12 months for small business employers). They believe they no longer meet the new casual definition. Employees can’t notify their intention to change if: They’re in an ongoing dispute about casual conversion. Their employer refused a previous notification within the last 6 months. Employer’s Response to Casual Conversion Employers must consult with employees before responding in writing within 21 days, either accepting or refusing the change. If accepted, the response must detail the new employment status, hours of work, and when the change takes effect. Disputes About Casual Conversion Unresolved disputes can be taken to the Fair Work Commission, which will first try to resolve informally through mediation or conciliation, and if necessary, through formal arbitration resulting in a legally binding decision. Casual Employment Information Statement (CEIS) Starting 26 August 2024, employers must provide the CEIS to new casual employees before or soon after they start, and to all casual employees as follows: Non-small business employees: as soon as possible after 6 months, 12 months, and every subsequent 12 months. Small business employees: as soon as possible after 12 months of employment. Stay informed and make sure you’re up to date with these changes to ensure compliance and smooth transitions for your casual employees!

The Fair Work Commission, Australia's national workplace relations tribunal, has updated the superannuation guidelines across 147 awards, effective from April 9, 2024. These revisions ensure the awards are consistent with the latest superannuation regulations, including the entitlement to superannuation contributions outlined in the National Employment Standards (NES), which took effect on January 1, 2024. Superannuation Rights under the NES The NES now includes a provision for superannuation contributions, granting most employees covered by the NES the ability to pursue legal action under the Fair Work Act for any discrepancies in superannuation payments. Although employers are already required to make superannuation contributions for eligible employees under superannuation guarantee laws, the Australian Taxation Office (ATO) continues to oversee compliance with these obligations. Updated Superannuation Rules in Awards The updates primarily integrate existing superannuation legislation rules, focusing on the rights and obligations of both employers and employees. Key updates include: Employees generally have the option to select their own superannuation fund. If a new employee does not select a fund, the employer must consult the ATO to check if the employee belongs to a stapled superannuation fund. If so, contributions should be made to this stapled fund. If an employee does not choose a fund and does not belong to a stapled fund, the employer fulfills the fund choice requirement by contributing to a superannuation fund listed in the award, assuming the fund accepts contributions for the employee. Recommended Actions It is advisable to have a default super fund, specifically one recognised in the applicable award. Employers should also implement a robust payroll system that supports electronic onboarding, enabling new employees to select either their chosen super fund or the employer's default fund. This system should automatically calculate and facilitate super payments through a clearing house. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Written by Harshini Elliott, Senior HR Partner Changes to the Closing Loopholes Bill Part 1 now addresses any anomalies in the operation of the exemption for small business from providing employees with redundancy pay under the National Employment Standards (NES). The amendments will mean that the existing exemption will not apply to employers that are bankrupt or in liquidation, and which have downsized due to insolvency to become a small business employer. This will ensure that employees terminated due to the insolvency of their employer retain their entitlement to redundancy pay if their employer was not a small business prior to insolvency.  What has changed? The changes will address an anomaly which causes some employees of employers – that are bankrupt or in liquidation – to miss out on a NES entitlement to redundancy pay which would have otherwise been payable at the end of their employment. This occurs when an employer downsizes due to insolvency to fewer than 15 staff, becoming a small business employer exempt from providing redundancy pay to employees under the NES. There will be no change to how the small business redundancy exemption currently applies to viable small businesses, including those that have restructured from a larger employer and are continuing to trade. It will only change how the small business redundancy exemption applies to employers that are bankrupt or in liquidation. What do these changes mean? This change means that employees will no longer be disadvantaged if they are made redundant later than other employees during the insolvency process, including if they are directed by an insolvency practitioner to assist with the wind up of their insolvent employer. When will these changes come into effect? These changes commenced on 15 December 2023. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

Written by Harshini Elliott, Senior HR Partner Changes commenced on 15 December 2023   Changes have been made to the Closing Loopholes Bill Part 1 to strengthen Commonwealth work health and safety offences and penalties by: Introducing an industrial manslaughter offence; Increasing penalties; and Providing new criminal responsibility provisions for bodies corporate and the Commonwealth.
The amendments also establish a Family and Injured Workers Advisory Committee. What has changed? The changes amend the WHS Act to strengthen the work health and safety offences and penalties regime by including: An industrial manslaughter offence for the Commonwealth work health and safety jurisdiction with penalties of $18 million for a body corporate and 25 years imprisonment for an individual. Significant increases to the Category 1 offence penalties from $3 million to $15 million for a body corporate, from $600,000 to $3 million for a person conducting a business or undertaking or an officer, and from $300,000 to $1.5 million for any other person. A 39.03% increase to all other penalties in the WHS Act . For those penalties which have increased, an indexing mechanism to annually increase penalties in line with the national consumer price index. New criminal responsibility provisions for bodies corporate and the Commonwealth.
The changes also amend the WHS Act to establish a Family and Injured Workers Advisory Committee. The Committee will provide advice to the Minister for Employment and Workplace Relations and Commonwealth work health and safety regulators on the support needs of those affected by a serious workplace incident and help inform the development of relevant policies and strategies. What will these changes mean? The industrial manslaughter offence and higher penalties for breaching work health and safety duties will promote compliance and help make workplaces safer. The industrial manslaughter offence will address community concern and apply higher penalties to the most egregious breaches of work health and safety duties, those which cause death. The indexing mechanism will ensure work health and safety penalties retain their relative value and remain a serious deterrent into the future. New criminal responsibility provisions will ensure bodies cooperate and the Commonwealth are held accountable for breaches of work health and safety duties. The Family and Injured Workers Advisory Committee will ensure that bereaved families and seriously injured workers and their families have the opportunity to give feedback to government, and advocate for change or reform to meet the needs of those affected by a workplace death or serious injury or illness. When will these changes come into effect? The industrial manslaughter offence will commence on 1 July 2024. The Minister for Employment and Workplace Relations is required to establish the Family and Injured Workers Advisory Committee within 12 months of the commencement of the relevant provisions. Most other amendments commenced on 15 December 2023. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR . We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au

The Australian government has implemented significant amendments to its labor laws with the introduction of the "Closing Loopholes" legislative package, which comprises the Closing Loopholes Act 2023 and the subsequent Closing Loopholes No. 2 Act 2024. This legislation, passed by the Commonwealth Parliament on December 7, 2023, marks a pivotal step in combating wage exploitation. A cornerstone of these amendments is the introduction of a new criminal offense known as Wage Theft, which targets employers deliberately underpaying their employees. This move to criminalise wage theft reflects a growing recognition of the severity of underpaying workers and the necessity for stricter enforcement measures. The legislation specifically targets intentional underpayments relating to employee entitlements outlined in the Act or under a fair work instrument, such as modern awards or enterprise agreements. Notably, the offense extends to intentional underpayments of superannuation contributions, reinforcing the government's commitment to protecting employee benefits. Commencing January 1, 2025, stringent penalties will be introduced for employers, including individual directors, who intentionally withhold wages or superannuation contributions. Penalties include imprisonment for up to ten years and fines reaching $7.8 million. A key aspect of these new provisions is the consideration of the employer's intent, highlighting the importance for employers to proactively ensure compliance to avoid severe repercussions. Employers previously or currently identified for underpaying employees must be particularly vigilant. The courts will consider whether employers knowingly continued underpaying employees, potentially interpreting this as a willful violation of the new laws. This underscores the urgent need for employers to conduct thorough compliance audits of their payroll and management practices to rectify any underpayments and avoid future legal complications. Moreover, the legislation introduces measures to encourage employers to self-report underpayment violations. Incentives for self-disclosure include protection from criminal prosecution for wage theft, provided certain conditions are met. This includes adherence to a forthcoming Voluntary Small Business Wage Compliance Code, developed in collaboration with government and industry groups. Compliance with this code will serve as a safeguard against criminal prosecution for self-disclosing employers. Additionally, the Fair Work Ombudsman (FWO) may enter into cooperation agreements with employers who voluntarily report wage underpayments. While these agreements can exempt employers from criminal prosecution, the FWO retains the authority to take alternative measures, such as issuing compliance notices or pursuing civil action. It's crucial to understand that the new wage theft offense will not penalise honest mistakes or unintentional miscalculations by employers. Instead, it targets deliberate acts of underpayment, holding those who intentionally exploit workers criminally accountable. The inclusion of cooperation agreements and compliance codes serves to support employers who have made unintentional errors, offering them pathways to rectify these mistakes while maintaining their obligation to fair worker compensation. The changes usher in a new era of accountability in the Australian workplace, emphasizing the importance of fair compensation and the legal responsibilities of employers. These amendments are scheduled to take effect from January 1, 2025, but the actual commencement date hinges on the declaration of the Voluntary Small Business Wage Compliance Code by the Minister for Employment and Workplace Relations. If the Code is not declared, the offense will not be enacted. This phased approach allows employers time to adjust and align with the new legal standards, ensuring that worker rights are protected and upheld in the Australian labor market. About Essential HR Simplify HR processes, stay compliant & maximise performance Unlock the full potential of your business by harnessing the power of Essential HR. We understand the intricate demands that arise when you bring talented individuals on board, and we're here to guide you every step of the way.   Managing a workforce can be a daunting task, but with our proven HR solutions, you can navigate the complexities with ease. Our team of HR & recruitment professionals boasts an impressive track record, having excelled in senior management roles across various organisations.   No matter the scale or urgency of your HR needs, we've got you covered. Our flexible services can be customised to suit your unique requirements, whether it's a one-time project, an immediate workplace issue, or a long-term HR partnership.   email us now at hr@esshr.com.au