Closing Loopholes laws

The Australian Government has made changes to the Fair Work Act as part of their new ‘Closing Loopholes’ laws. 

There have been 2 sets of amendments to the Fair Work Act as part of the Government’s changes:

1. the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, which received Royal Assent on 14 December 2023; and
2. the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, which received Royal Assent on 26 February 2024.

The changes take effect at different times between December 2023 and August 2025.

While there are a significant number of amendments across both Acts, some key changes in the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024  include:

• changes to the definition of casual employee and changes to casual conversion
• changes to the definition of employment
• functions relating to an employee’s right to disconnect including:

      – a new dispute function

      – a process for the Commission to make a model term for awards

• an ‘unfair contracts’ dispute resolution function for independent contractors (below a high-income threshold)
• criminalising intentional wage underpayments. 

Access a visual summary of the Closing Loopholes changes and key start dates here.

Some changes are quite simple although varying in timeframe and frequency, depending on number of employees in a business. Case in point? Changes around issuing casual employees with the Casual Employment Information Statement. The Casual Employment Information Statement (CEIS) is a document with information about employment conditions that an employer must provide to all new casual employees.

Commencing 26 August 2024, the CEIS will now need to be provided to:

• new casual employees before, or as soon as possible after, the start of their employment
• all casual employees employed by non-small businesses as soon as possible after

     – 6 months of employment

     – 12 months of employment and every subsequent period of 12 months of employment

• all casual employees of small businesses as soon as possible after 12 months of employment.

Whether you’re a small business employer (fewer than 15 employees) or an employer with 15 employees or more, the Closing Loopholes reforms affect you. If you don’t have time or the inclination to research and implement the changes appropriate to your business, you might like to find yourself a competent HR Consultant with genuine HR Manager-level experience to guide you through the process.

All too much? Call Bare Bones Consulting. Loopholes closed.