Closing loopholes no.2 – The Fair Work Commission and “Employee-like” workers

Closing loopholes no.2 – The Fair Work Commission and “Employee-like” workers

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Closing loopholes no.2 – The Fair Work Commission and “Employee-like” workers

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From 26/8/24, the Fair Work Commission (FWC) will have a new jurisdiction which includes the ability to set minimum standards for “employee-like workers” who perform work for a digital platform and will give those workers access to rights and powers that had previously been unavailable to them. This is part of the Federal Labor Government’s plan to address issues relating to the “gig economy”.

Who does it affect?

The first change being made is to define what an “employee-like worker” is as distinct from an employee and an individual contractor. A worker is considered “employee-like” if they meet two or more of the following characteristics:

  • They have low bargaining power
  • They have low authority over performance of work
  • They receive remuneration at or below the rate of employees performing similar work
  • Have any other characteristic prescribed by regulations

What are the changes?

Previously workers in this space had few rights but they will now have access to the following:

  •  Minimum standards –  A set of minimum standards can now be set to apply to these workers following application by a registered organisation representing employee like workers and their businesses, the Minister for Employment and Workplace Relations, or the FWC. There are limits to what can be included in Minimum Standards and the FWC can only include terms relating to penalty rates, minimum engagement and other similar matters if it is appropriate for the work being performed. Likewise they cannot include terms relating to overtime and rostering.
  • Collective bargaining – Employee-like workers will also be able to collectively bargain through a registered organisation representing them. These will be similar to enterprise agreements and will require the negotiating parties to consult and explain the terms of the agreement before they are approved by the FWC.
  • Unfair deactivation – Employee-like workers will now be able to apply to the FWC for assistance if they believe they have been unfairly de-activated from a digital platform. This will be available to employee-like workers who have been on a contract, or series of contracts, for at least 6-months with the digital platform.
  • Workplace delegates rights – Workplace delegates will now have additional protections while performing their duties and will have a right to reasonable communication with members of their employee organisation and anyone eligible to be members regarding any industrial relations concerns and they will also have a right to reasonable access to workplace facilities. There will additionally be a “Digital Labour Platform Deactivation Code” developed by the Minister of The Department of Employment and Workplace Relations to guide both sides on valid deactivations.

These changes are a significant departure from the current norm for businesses operating in this space. To assist businesses and employee-like workers with the transition, the FWC has set up a Regulated Worker User Group to engage businesses and employee-like workers and explain the changes and keep everyone updated on the progress of the implementation of said changes. Click here for more information.

If you need any assistance with this or similar matters, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Closing Loopholes no. 2 – Unfair Contractual Terms

Closing Loopholes no. 2 – Unfair Contractual Terms

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Closing Loopholes no. 2 – Unfair Contractual Terms

example flexible working arrangement

From the 26th of August 2024 independent contractors will now have the ability to apply to the Fair Work Commission (FWC) to resolve disputes between themselves and principals in matters relating to unfair contract terms in service contracts.

The change has been brought in to provide independent contractors (who earn below the contractor high income threshold) with a more inexpensive and informal pathway to resolving these disputes.

What does the FWC consider in these cases?

The FWC will apply tests to the relationship between the contractor and the principal to determine whether or not there are any instances of an unfair contractual relationship. The dispute, however, has to be about a matter that would be considered a workplace relations matter if the contractor was an employee of the principal:

Here are some of the matters that could be considered by the FWC in these cases:

  • The relative bargaining power of the two parties;
  • Whether the contract is significantly imbalanced in favour of one of the parties;
  • Whether specific contract terms are necessary to protect the legitimate business interests of one of the parties;
  • Whether a contract term is harsh, unjust, or unfair on one of the parties;
  • Whether the remuneration for the parties to the service contract is less than other employees or contractors performing similar work;
  • Any other matters the FWC considers relevant.

If the terms of the contract fail to meet the above criteria then the FWC may either set aside the contract term entirely or change the terms of the contract in order for it to be compliant.

What should I do next?

If your business is one that uses contractors it will be important to review the contracts that you have in place to ensure that it doesn’t contain terms that would fail to meet the above terms. Likewise when developing new contracts they should be made with these terms in mind.

Additionally, while we have no practical understanding of how these disputes will be settled by the FWC at this stage it also possible that it could draw additional scrutiny as to whether the relationship is actually that of an employer and employee as opposed to contractor and principal.

For more information you can visit the Fair Work Commission website regarding this matter by clicking this link

If you need any assistance with this or any other related matter please don’t hesitate to contact us on 0438 533 311 or by emailing us at enquiries@ridgelinehr.com.au

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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How to manage the right to disconnect

How to manage the right to disconnect

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How to manage the right to disconnect

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From 26 August 2024, employers with 15 or more employees have to respect employees’ right to disconnect from work outside their contracted working hours. Smaller employers will have those obligations 12 months later. What does it mean for your business and what do you need to do?  

What is the right to disconnect?

Here is how it is described in the Fact Sheet published by the Department of Employment and Workplace Relations:

“The right to disconnect will inform how employers and employees interact outside  of working hours. The right does not prohibit employers from contacting their employees, nor does it prevent employees from contacting each other, including across time zones. Rather, the employee will be able to refuse to monitor, read or respond to contact, or attempted contact outside of working hours, when they are not expected to be working or paid to be working, so long as doing so is not unreasonable.” 

So it doesn’t prohibit making contact with employees outside their contracted working hours – it just provides that they don’t have to respond to such contact outside their contracted working hours other than in limited circumstances.

The real obligations on employers are to not unreasonably require someone to respond to contact after hours and not to penalise people for exercising their right to disconnect. 

Inclusion in modern awards

The Fair Work Commission has been tasked with inserting “right to disconnect” clauses in modern awards. 

The approach it is taking is to have a standard clause which is customised according to existing provisions in Awards which might have relevance to contact after hours such as standby or call back or roster change provisions. 

So you need to consider which awards cover your employees, what provisions they might have in regard to out of hours contact and how those provisions relate to your own operations.

It is also something that you will need to consider in enterprise agreements.

What do you need to do?

In our blog back in February on Managing disconnection from work, we noted that this really should not be that big an issue for most organisations so the first thing you should do is ignore all of the hype about it. 

Then you should undertake a constructive assessment of the effects for your organisation and your people by answering the following questions:

  • Are there any situations where employees in your organisations need to be responsive to contact outside their standard working hours for genuine operational reasons?
  • Are there provisions in a modern award or enterprise agreement which deal with the specific type or cause of contact eg someone being on standby or being called back or being contacted about a roster change or some other prescribed matter outside their standard working hours?
  • Are employees remunerated for making themselves available for contact outside working hours under the provisions of a modern award or enterprise agreement or otherwise under their contract of employment?
  • Do you have any employees who have flexibility in their hours and location of work and whose working hours might fall outside standard operating hours via a flexible working arrangement or agreement or by individual choice?
  • Do you have any protocols in place regarding out of hours contact for people who may be working outside standard working hours eg contact to other staff or external parties should only be via email with the scheduling function used to delay transmission until the start of the following working day?
  • Do you have any protocols in place with external parties in relation to their contact and their response expectations with your staff outside standard working hours?
  • Do any of your people have to operate across timezones which might cause communications to occur outside an employee’s standard working hours?
  • Do any of your managers unreasonably or unnecessarily send communications to their people outside their standard working hours, expecting them to respond outside those hours?
  • Do any external parties unreasonably and unnecessarily send communications to your people outside their standard working hours, expecting them to respond outside those hours?
  • Do you have people who you know will respond to out of hours contacts even if you don’t want them to?
  • Do you deal with out of hours contact requirements in your contracts of employment?
  • Do you verify adequacy of remuneration having regard to out of hours contact requirements where an employee is expected to respond to specified contacts?
  • Do you deal with out of hours contact happenings in your performance and development conversations?
  • Do you have a properly structured and communicated “Life balance policy” which includes details on the organisation’s expectations and processes for management of out of hours contact and the employee right to disconnect? 

Other tips

As with any matter around people and culture, we encourage you to look at these things on 3 levels – organisational, team and individual – and please do that by engaging with your people in determining what the realities for your business and people are and covering off all of the bases. 

Remember it is about your business and your people so don’t just borrow or buy a policy statement from someone else and remember our 4C compliance model because unless you do all 4Cs, you are not truly compliant:

  • Commitment – the fundamentals that deliver purpose and compliance
  • Capability – the tools and systems that enable good people practice
  • Competency – the skills and knowledge that deliver positive outcomes for businesses and people
  • Culture – the integration of all of that to deliver everyday employee engagement and high performance.

How we can help?

We can help you to get the right answers to all of the questions that we have said you need to be asking in determining how your business is going to responsibly manage your employees’ right to disconnect.

We can advise you on remuneration in line wth award provisions and we can be-you with policies and employment contracts as well as advices to ay “problem individuals” who might need to modify their habits so as not to interfere with other employees’ right to disconnect.

If you would like to learn more about ways that we help with this or any other HR issue, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Updated Fair Work Statements

Updated Fair Work Statements

Latest News & Events

Updated Fair Work Statements

example flexible working arrangement

There are a range of statements which employers must give to new employees before, on or as soon as possible after commencement and they are updated each year. Here is the new set as at 1 July 2024. 

The Fair Work Information Statement

This must be provided to all new employees regardless of how they are engaged ie whether full-time, part-time, casual, seasonal or other fixed term.

It provides employees with a variety of information on entitlements and protections at work as derived from legislation, awards, enterprise agreements  and employment contracts as well as where to go for help. Download it below.

Fair Work Information Statement 010724 

The Casual Employment Information Statement

This sets out the grounds on which employment might be deemed to be casual. It also provides informatIon on a casual employee’s rights in relation to casual conversion and avenues and processes for resolution of any disputes in relation to a declined request to convert to full-time or part-time employment. You can download it below.

Casual Employment Information Statement 010724

Please note that employers have more extensive obligations for providing casual employees with the Casual Employment Information Statement – both on commencement and:

  • In the case of a small business (less than 15 employees), after 12 months of employment
  • In the case of a larger business, after 6 months, 12 months and annually thereafter.

Fixed Term Contract Information Statements 

From December 2023, new rules governing fixed term contracts limited the duration of contracts to a maximum aggregate period of 2 years and the number of extensions of fixed term contracts to one only.

All fixed term employees must be provided with the Fixed Term Contract Information Statement which sets out these rules, some of the differences between continuing employment entitlements and those applying to fixed term employees (eg in relation to redundancy and notice) and where to go for assistance in the event of a dispute over fixed term employment. You can download it below.

Fixed Term Contract Information Statement June 010724

What do you need to do?

You need to ensure that you comply with the above requirements to issue these notices to employees in line with their employment status. Failure to do so is a breach of National Employment Standards and can result in substantial fines.

Have you checked on the status of your compliance with Fair Work, modern awards, regulations and other employment-related legislation in recent times? If not, you should check in on that.

If you would like to learn more about ways that we can help you with this, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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New workshops – understanding psychosocial hazards

New workshops – understanding psychosocial hazards

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New workshops – understanding psychosocial hazards

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The introduction of the new positive duty to eliminate or control psychosocial hazards casts a whole new perspective on what organisations need to do to be compliant with their legal obligations and be seen to manage this duty  responsibly. It really does require a significant shift in mindset and an overhaul of how you manage policies, processes, practices and people.  

Background

At Ridgeline HR, we developed our 4C compliance model 20 years ago and it really does stand up when you look at what a positive duty requires. It is much more than just putting out a policy, telling people they have to comply with it and reacting to resolve any breaches or complaints.

That is because we have always believed that the key PEOPLE FACTORS that SMBs have to get right are the quality of relationships and the behaviour of their people. They are very much in focus under the positive duties. 

So we are well versed in all of this stuff.

Our Workshops

We are offering organisations the opportunity to leverage our experience and knowledge in this space via engaging and practical workshops for your leadership team or your consultative/safety committee or other representative body.

The workshops which run for 3 hours are highly interactive and designed to engage participants in the process of developing an appropriate and effective organisational response to the introduction of the positive duty.

 Learning outcomes

 Participants will gain:

  • Knowledge of what the psychosocial hazards are and why they are psychosocial hazards
  • A practical awareness of the questions that organisations need to be asking with respect to each of the psychosocial hazards and how risks associated with psychosocial hazards can manifest in workplaces through policies, processes, practices and people.
  • An understanding of how multiple psychosocial hazards can be in play and compound risks.
  • An appreciation of the value of recognising organisational strengths as well as areas for improvement and the difference that approaching this with a positive mindset can make.
  • An introduction to our purpose designed HEART framework for implementing an effective psychosocial hazard control plan with your people. 
  • A practical start on developing your own organisational Psychosocial Hazard Risk Control Plan.

Options

We can deliver this workshop in person or online.

We can also provide a number of ancillary services such as:

    • Our Better Workplace Projects where we take a deep dive into your organisation having conversations with a representative cross section of your people to identify strengths and opportunities for improvements
    • Conducting surveys of your people using the best practice PERMAH Workplace Wellbeing Survey and/or its companion psychosocial hazard survey and unpacking the results with you
    • Setting up, training and facilitating your own Better Workplace Team to really take hold of the well-being agenda in your workplace and collaboratively drive improvements
    • Helping to redesign and reposition your People and Culture policies and procedures to align with your new positive duty obligations 

 Contact us using the “Tell us what you need help with” form below to arrange your session.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Closing loopholes – casual employment

Closing loopholes – casual employment

Latest News & Events

Closing loopholes – casual employment

example flexible working arrangement

The Courts and Government have been jumping from one definition or interpretation of what casual employment is to another and then another over recent years and that is happening again under the Albanese Government’s Fair Work Legislation Amendment (Closing Loopholes) Act 2023.  Is it just the pendulum swinging back as happens on a change of government or is it more than that?  

S15A(1) of the Fair Work Act 2009 currently provides that an employee is a casual employee if the employer offers employment on the basis that “there is no firm advance commitment to continuing and indefinite work according to an agreed pattern of work for the person” and the person accepts the offer on that basis and becomes an employee as a result of that.

So the emphasis is on what is in the contract regardless of how the arrangement really works in practice.

Under the changes being introduced, the concept that a casual employee is one who has no firm advance commitment to continuing and indefinite work remains but the emphasis shifts to the practical reality of the relationship rather than just what is written in the contract.

The question of whether there is a firm advance commitment to continuing and indefinite work will be determined by a number of questions:

  • whether the employer can choose to offer (or not offer) work to the employee and whether the employee can choose to accept or reject an offer of work
  • whether continuing work is reasonably likely to be available given the nature of the business
  • whether part-time or full-time employees are undertaking similar roles in the workplace
  • whether the employee has a regular pattern of work.

We know that the vast majority of business owners try to do the right thing and want to be compliant with their obligations. 

Casual conversion

The ability for casual employees who serve a minimum period of engagement with a regular and systematic pattern of hours of work has been a feature of awards for decades and has been legislated for a few years now. So it isn’t a new concept.

Under the new rules, a casual employee of a small business employer (ie one with less than 15 employee) will be able to apply for conversion to full-time or part-time employment after 12 months service if they believe that they no longer fit the definition of a casual employee. For employees of larger employees, that opportunity comes after 6 months’ service.

Prior to these new provisions taking effect, employers with 15 or more employees have to offer casual conversion to casual employees engaged for 12 months or more and on a regular pattern of hours on an ongoing basis for at least the last 6 months provided that the employee could continue to work that regular pattern of hours without significant changes as a permanent employee.

Under the new rules, it is entirely up to the employee as to whether they request casual conversion. The employer has no obligation to offer it but will have to respond to any such request within 21 days.

If the employer refuses the request, the employee can make application to the Fair Work Commission for mediation, conciliation or arbitration of the matter as a dispute.

The employer will have to comply with whatever agreement is reached or decision is made in those proceedings.

Employees are under no obligation to convert – they have the option of remaining a casual employee if that is their preference.

There are transitional arrangements whereby the current rules on casual conversion will continue after 26 August 2024 in respect of existing casual employees for a period of 6 months in the case of employers with 15 or more employees or 12 months for employers with less than 15 employees.

Casual Employment Information Statement

All casual employees must be provided with the revised Casual Employment Information Statement on or before commencement or as soon as possible thereafter.

Additionally, under the new rules, they will also have to be provided with it again:

  •  in the case of a small business, after 12 months of employment
  •  in the case of a large business, after 6 months, 12 months and annually thereafter

When is this all happening?

These changes take effect from 26 August 2024.

What do you need to do?

If you employ casual employees, review your current working arrangements eg how long they have been working with you, what their patterns of hours of work are and whether there is a commitment to ongoing employment on a regular basis (whether or not that commitment is in writing).

Secondly, review your employment contracts or letters of offer to ensure that they are consistent with the new definition and rules on casual employment.

Thirdly, ensure that you obtain the new Casual Employment Information Statement when it becomes available and read it to ensure that you understand it.

Fourthly, get prepared to have conversations with your casual employees about their status against the revised definition and rules and to deal with any likely request for conversion.

We can assist you in all of these areas.

If you would like to learn more about ways that we can do this, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH