August 26 industrial relations changes for business, explained

A major raft of industrial relations reforms has come into effect, changing the way workers engage with their employers, disconnect once they leave the workplace, and participate in the multi-billion-dollar gig economy.

Monday, August 26, marks the starting point for several key industrial relations reforms included in the landmark Closing Loopholes legislative package.

SmartCompany has run through the key facts and most significant changes, providing a starting point for employers and workers looking to understand their new rights and obligations.

Here are the basics.

The right to disconnect

From August 26, workers have the right not to respond to work-related communications outside their standard hours of work.

There are exceptions: employees may need to reply in case of emergency, for example.

But, for the most part, the rules protect workers who choose not to conduct uncompensated work outside their regular schedule.

Employers are not forbidden from reaching out to workers, but may face penalties if they breach a stop order put in place by the Fair Work Commission.

Read more here.

Definition of ‘casual employee’

If you want to engage a worker as a casual employee, the day-to-day reality of their employment must prove they’re actually a ‘casual’.

That’s the gist of the August 26 changes to casual employment.

Basically, under the new definition of casual employment, contained within the Fair Work Act 2009, a worker is casually employed if:

• They don’t have a firm advance commitment to “continuing and ongoing work”, and
• They are entitled to casual loading under their award or employment contract.

Read more here.

Changes to the gig economy

Reflecting on the often uneasy middle ground between independent contractors and employees, the Fair Work Commission has also gained new powers to set standards in the gig economy.

From today, it can consider orders and guidelines for rideshare drivers and food delivery riders, which could see those workers gain new entitlements.

Those changes will first require deep consultation with workers and platforms alike.

Read more here.

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