Running a biz is no small feat, and just when you thought you had everything under control—BAM! 💥Fair Work drops the “Closing the Loopholes” legislation. Effective 26 August, this new set of rules is here to give your employment relationships a bit of a makeover. No stress, though—we’re here to make it super simple for you.
So here’s what’s changing and how to keep things going without breaking a sweat.
Casual Employment: Netflix and Chill? More Like Netflix and Commit!
The days of keeping things casual are over—well, at least when it comes to your employees. If your workers have been showing up regularly and sticking around like a reliable Wi-Fi signal, it might be time to make things official. Fair Work wants clarity, and “casual” is no longer a long-term relationship status.
What’s changed?
If a worker’s been doing their thing on the regular for 12 months, they now have the right to request permanent employment. So if your “casual” crew members have become as dependable as your morning coffee, it’s time to level up the relationship and offer them something a bit more permanent-the casual loading on their wages will be dropped but they start accruing other entitlements such as leave.
Also, Employers are required to give casual employees a copy of the Fair Work Casual Employment Information Statement at the start of their employment, after 6 months and then after 12 months.... and THEN every 12 months after that (not small biz though, they only need to give it at commencement and after 12 months of employment).
Independent Contractors?! Define the Relationship, But for Real This Time
Ever felt like your “independent contractor” might be more of a regular than a guest star? Well, the Fair Work Commission agrees. They’re now taking a closer look at the 'whole relationship', not just what’s in the contract. Think of it as a “where is this going?” conversation, but with paperwork.
If you’re all in with controlling your contractor’s work hours, location, and what they do, newsflash—they might actually be an employee. So, if your “contractor” is feeling a little too familiar (like someone who raids the fridge and leaves the milk out), it’s time to reassess that status. Fair Work isn’t buying the “we’re just keeping it casual” line anymore.
The Right to Disconnect: Time to Log Off
This stickler is now in play for big biz (those that employ 15 or more) and comes into play on August 2025 for small biz (<15 employees) so get ready! And here’s where it gets interesting. Under these new rules, your team now has the right to disconnect. That means no more emails, phone calls, or Teams or Slack messages after hours (unless it’s something urgent). It’s all about respecting that work-life balance and letting your team unplug when the clock strikes 5 p.m. (if you work a 9-5'er)
But you might be wondering: What if we pay them for after-hours work? Great question! There’s a bit of a loophole here. If your employees are getting paid for those after-hours efforts (like overtime or on-call work), the right to disconnect doesn’t quite apply. After all, if they’re all in with paid after-hours work, they’re still on the clock—so you’re good to keep the lines of communication open.
This is all about creating boundaries. Your employees now have the right to unplug and enjoy their personal time. That means, unless they’re being paid for after-hours work, you’ll need to save your non-urgent “quick questions” for the next business day. It’s time to respect the switch-off, unless you’re paying for the privilege.
SO WHY SHOULD YOU CARE (And Act Now)
Whether you’re managing a small team or running a bigger operation, these changes will affect how you manage your crew. Between new rules for casual employees, redefining contractors, and the right to log off, being all in on compliance now means fewer headaches (and surprise fines) later. 😉
THE TAKEAWAY?
Get your contracts in order, reassess your workforce, put rules in place about when and how you communicate with your employees, and make sure everyone’s playing by the new rules. It’s all about staying ahead of the game and keeping Fair Work on your good side—because, let’s face it, no one wants to deal with a surprise audit.
HERE'S HOW TO STAY ALL IN ON COMPLIANCE:
1. Review employment contracts: Make sure they reflect reality. If it walks like an employee and talks like an employee, guess what—it’s probably an employee (and not a duck)
2. Track patterns: If your “casual” is clocking in like a 9-to-5’er, it’s time for a status upgrade. Casual? Nah, sounds more like “permanently attached.”
3. Invest in specialised payroll software to help keep on top of payroll compliance - cough Employment Hero 😉cough
4. Reevaluate contractors: If your contractors are getting all in with your day-to-day ops, you might be in employee territory. Time to rethink that setup.
5. Check your disconnect policies: Respect the right to disconnect—unless you’re paying employees for after-hours work, in which case, game on!
And hey we get it, sure compliance can be a chore, and a buzzkill, but staying ahead of the game now means fewer headaches down the line. And don’t worry—we’re here to help you navigate these changes like a pro. Remember we've got your numbers AND your back.
Still have questions? That's OK, feel free to make contact with one of our oh so cool not nerdy team members who can defs help you! or refer to the legals at the FairWork website here.
Disclaimer: The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice
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