2024 in Review: Workplace Rights, Challenges, and What’s Next
With 2024 coming to a close, it is timely to summarise the changes that have occurred this year and some changes to come in 2025.
Employment law and industrial relations is an ever-changing landscape. It is prudent for business owners and managers to understand their obligations to mitigate risk to themselves personally and their business.
Right to Disconnect
This year, a significant topic was the introduction of the ‘right to disconnect’. This new workplace right allows employees to reasonably refuse contact from their employers outside of working hours.
For most employees, this right came into effect on 26 August 2024 (it will apply to those operations who fit the Small Business Code from 26 August 2025).
According to the new section 333M of the Fair Work Act, employees can refuse to monitor, read or respond to contact outside their working hours unless it is unreasonable to do so. It’s important to understand this right does not prevent employees from attempting contact outside of hours.
Employers should note not all out-of-hours contact is prohibited… it just must be reasonable.
In addition, the Fair Work Commission can hear disputes regarding the right to disconnect if an employee exercises this right and the employer believes the refusal is unreasonable, or if there is another disagreement about this right.
The right to disconnect is protected under general workplace rights so adverse action must not be taken against an employee for reasonably exercising this right.
The extent of the limitations on out-of-hours contact will become clearer as the Fair Work Commission and Courts handle disputes related to this right.Australian employers and anyone in a decision-making position regarding wages and the payment of wages must take proactive steps to ensure compliance in relation to wage theft and avoid serious repercussions.
Key Takeaways
Employers should consider reviewing and updating:
- Employment contracts and position descriptions to notify employees of any expected out-of-hours contact and ensure it is appropriate.
- Policies and procedures related to out-of-hours contact, including reasonable work hours and workplace communication.
- Training for managers and supervisors on the right to disconnect and any updated processes.
- Informing employees or contractors overseas or in different time zones about considering their coworkers’ right to disconnect when dealing outside of work hours.
- Liaising with clients / customers who may contact your employees out of hours to discuss how this will be managed in the future.
Employee Choice Pathway to Permanent Employment
From 26 February 2025, the current casual conversion scheme is to be replaced by the new ‘Employee Choice Pathway’ for most casual employees.
Where a casual employee has worked for their employer for at least six months and thinks they no longer fit the casual employee definition, that employee can request permanent employment in writing to their employer.
On receipt of any such request, employers are to consult with the employee within 21 days to discuss the ramifications of the requested change. The employer must then respond in writing to the employee with advice as to whether the requested changes have been accepted or rejected.
Where the request is accepted, it will be effective from the employee’s first pay period after acceptance, unless another start date has been agreed and confirmed in writing.
Rejection of the conversion request can only occur if any of the following apply:
- The employee still meets the definition of a casual employee.
- There are fair and reasonable operational grounds – e.g. significant changes or major impacts to the business’s operations or changes would be required to comply with existing industrial instruments.
- Accepting the request would cause non-compliance with a recruitment or other selection process required by law.
Key Takeaways
Employers should consider implementing new processes to ensure Employee Choice notices are reviewed, consultations occur, and written responses are provided within 21 days.
Regulated Workers and Businesses in the Road Transport Industry
On 26 August, significant changes were introduced to regulate road transport contractors and ‘employee-like’ (or ‘gig’) workers as part of the second ‘Closing the Loopholes’ bill passed in February this year.
The Fair Work Commission now plays a central role in regulating the road transport industry. It has the authority to issue minimum standards orders (legally binding) or guidelines (non-binding) after consulting with affected parties and the newly established Road Transport Advisory Group. The Commission can also regulate contractual chains within the industry, setting standards for payment times, fuel levies, rate reviews, termination and cost recovery.
The Transport Workers’ Union lodged the first applications for minimum standards orders on 28 August 2024, covering certain employee-like workers and regulated independent contractors.
Another application for a contractual chain order was lodged on 26 September 2024, addressing payment terms, prohibition on set-off terms, and compulsory rate reviews. All four applications are scheduled for an in-person conference before the Commission’s Expert Panel on 29 November 2024.
There is no information at this point on the outcome of the in-person conference.
Psychological Hazards
Across most State jurisdictions, there has been a focus on eliminating psychosocial hazards from workplaces caused by job demands, poor support, bullying, harassment (including sexual harassment) and conflict.
Safe Work Australia reported that mental health conditions accounted for approximately 9% of serious workers’ compensation claims in 2021-22, a 36.9% increase since 2017-18. The most common causes were harassment, bullying, work pressure, and workplace violence. This trend is attributed to both destigmatisation and increased awareness of mental health conditions.
Key Takeaways
Employers should review their Work Health and Safety policies and practices to ensure they address psychosocial health and safety risks and consult with employees about these risks. A person conducting a business or undertaking (PCBUs) must proactively eliminate psychosocial hazards by identifying, assessing, and managing risks with appropriate measures.
What to Expect in 2025
Wage Theft Laws
From 1 January 2025, employers will be criminally liable if they intentionally underpay wages or benefits as required under the Fair Work Act or an industrial instrument.
Unfair Deactivations and Terminations of Contract for Regulated Workers
From 26 February 2025, the Fair Work Commission will accept applications for unfair deactivations or terminations of contract from regulated road transport workers and employee-like workers who have worked for at least six months after 26 August 2024. The Commission will assess whether there was a valid reason for termination and if relevant processes were followed.
Regulated workers and contractors will have 21 days from termination or deactivation to apply to the Commission, and eligibility is limited to those earning less than the Contractor High-Income threshold.
Fair Work Commission Powers
From 26 February 2025, the Full Bench of the Fair Work Commission (FWC) will have the authority to create model terms for enterprise agreements. These model terms will cover individual flexibility arrangements, consultation processes and dispute resolution. While these model terms won’t override existing terms or automatically apply to all enterprise agreements under the Fair Work Act 2009 (Cth), they can be adopted by parties during the negotiation process if they choose.
At Akyra, we partner with businesses to navigate these complexities, providing tailored HR support that safeguards your operations and empowers your people.
Contact Akyra for expert HR support tailored to your business needs in 2025.
Disclaimer – Reliance on Content
The material distributed is general information only. The information supplied is not intended to be legal or other professional advice, nor should it be relied upon as such. You should seek legal or professional advice in relation to your specific situation.
