Further Fair Work Act Update to the changes coming into play (effective August 2024)

Further update on changes to the Fair Work Act coming into effect on 26 August 2024. A previous note dealt with the new definition of casual employees & their pathways and the Right to Disconnect.

Change #1: Regulation of Employee-Like Workers (performing work via a digital platform)

Powers come into effect for the Fair Work Commission to be able to regulate “employee-like workers” who are performing work via digital platforms.

Why it’s important:

1. The Commission can now make minimum standard orders.

2. Deal with disputes about the “unfair deactivation” of a person from a digital platform. Similar to applying unfair dismissal laws to “employee-like” workers.

The TWU has already made an application for minimum standard orders for employees who pick up and deliver certain types of food.

Change #2: Extension of rights for delegates who are employee-like workers

The rights and protections for workplace delegates under the Fair Work Act are expanded to include regulated workers (including “employee-like workers” and “regulated road transport contractors”).

Why it’s important:

We will see more action by the unions to unionize workforces composed of ‘employee-like workers’. If you engage those types of workers, it’s important to foster an environment that people don’t feel the need for a third party to help them.

Change #3: Road Transport Industry

The Fair Work Commission now has the powers to make road transport contractual chain orders & guidelines. These orders will be applied down the contractual chain to the people actually carrying out the road transport work.

Why it’s important:

1. Orders can be made to provide an appropriate safety set of minimum standards for these types of workers. The orders may contain terms about payment, consultation, insurance, representation and delegates' rights and other matters.

2. In addition, they can deal with the unfair termination of a contract by a road transport provider.
   

Note: The road transport minimum standards orders must not include matters like overtime rates, rostering arrangements, and matters of a commercial nature.

Change #4: Unfair Contracts Regime for Independent Contractors

A new unfair contract regime has been introduced for independent contractors.

Why it’s important:

Contractors can now apply to the Fair Work Commission to vary or set aside a services contract if it is deemed unfair. This is particularly important for businesses that engage independent contractors.