The recent Job Summit in Canberra and significant High Court rulings have led to several proposed reforms from the Federal Government. While these changes won’t take effect immediately, they will have a lasting impact on how small and medium-sized enterprises (SMEs) operate in Australia. Below is a summary of the top four changes that employers should be aware of:
1. Changes to the Fair Work Act
The proposed amendments to the Fair Work Act primarily focus on labour hire, casual employment, and enterprise bargaining. Key proposed changes include:
- Equal Pay for Labour Hire Workers: Organisations that supply labour hire must ensure that their employees receive pay and employment conditions equivalent to those directly employed by the client company.
- Superannuation Guarantee Compliance: Amendments to the National Employment Standards will be introduced to enforce employer compliance with Superannuation Guarantee obligations.
2. Implications for Gig Workers and Contractors
The High Court’s recent decision, which overturned the classification of a Deliveroo delivery rider as an independent contractor, has significant implications for labour hire, platform workers, and contractors. The ruling limits the relevance of post-contractual conduct in defining the legal nature of a work relationship. This could lead to situations where employers set terms that prevent contractor-like employees from accessing protections under the Fair Work Act.
The government is now pushing to fulfil its election promise, enabling gig workers to seek Fair Work Commission rulings that entitle them to a minimum set of working conditions and wages.
3. Employee Complaints and the Fair Work Act
A recent case involving one of the big four banks has set new boundaries regarding the protections employees have under the Fair Work Act when raising objections or complaints. The ruling clarifies that employees don’t need access to a formal complaints procedure in an enterprise agreement to receive protection—simply making a complaint is enough. However, not all complaints are protected; only those relating to the employee’s own employment relationship or arising from their employment contract, award, or enterprise agreement are covered.
4. Managing Mental Health and Workplace Risks
SafeWork Australia and Victoria’s WorkSafe have proposed new regulations emphasising the importance of proactively managing mental health hazards in the workplace. Employers are now expected to treat mental health hazards with the same level of concern as physical hazards. For example, a manager’s tendency to bully is now regarded as much of a workplace hazard as any physical danger, such as a faulty lift.
These regulations are likely to increase the potential liability of employers under work health and safety laws if they fail to protect the mental well-being of their employees. For instance, large organisations with a history of bullying behaviour must implement formal systems with documented procedures for reporting bullying complaints, or they risk investigations and potential prosecution by safety regulators.
Final Thoughts
These upcoming changes to Fair Work and mental health regulations highlight the need for employers to stay informed and proactive. By understanding and preparing for these reforms, businesses can ensure compliance and create a safer, more supportive workplace. If you need expert guidance on how these changes could impact your business, The Save Group in Melbourne is here to help. We offer specialised advice tailored to your needs across Australia.