Merry Xmas and Happy 2025 to all our members.
2024 saw some significant changes to workplace laws and regulations. These updates address everything from wage fairness to employee rights, and as we look ahead to 2025, there are more important changes on the horizon. Here’s a brief overview of the key developments this year, along with a snapshot of what’s expected in 2025. As most businesses return to work following the holidays, it is important to be updated with the employment law changes that have taken place in 2024 and will take place in 2025 in order to be compliant at all times.
Snapshot of 2024
Below is a summary of the key changes that took effect in 2024:
Changes in 2024
Right to superannuation in the National Employment Standards
From 1 January 2024, the National Employment Standards (NES) include a right to superannuation contributions. This means that most employees covered by the NES can take court action under the Fair Work Act to recover unpaid super, unless the ATO has already commenced proceedings in relation to that super. Employers already had (and continue to have) an obligation to pay superannuation contributions for eligible employees under superannuation guarantee laws. There would be no contravention of the NES provision where an employer has met their obligations under these laws.
Changes to Paid Parental Leave Scheme
From 22 July 2024, eligible parents are be able to apply for up to 22 weeks of leave, instead of 20 weeks entitlement previously.
Superannuation
From 1 July 2024, the superannuation guarantee (SG) rate increased to 11.5%.
Casual employees in the black coal mining industry
From 1 January 2024, the employees in the black coal mining industry are entitled to portable long service leave entitlements that go with them between employers. This is managed by the Coal Mining Industry (Long Service Leave Funding) Corporation (Coal LSL). There are changes to clarify that the amount paid out as part of an employee’s long service leave entitlement must include casual loading (where it applies), and the method for the accrual of long service leave for casual employees.
Workplace Delegates’ Rights Term
From 1 July 2024, the FWC inserted a workplace delegates’s right term into all the Modern Awards and also, it became mandatory for all the Enterprise Agreements and new workplace determinations to include a workplace delegates’ right term. From 26 August 2024, workplace delegates’ rights are extended to regulated workers which include ‘employee-like’ workers performing digital platform work in the gig economy and regulated road transport contractors).
Same Job Same Pay
From 1 November 2024, the FWC has the power to make orders with respect to labour hire workers (i.e. Same job, Same pay orders). Although the FWC had the authority to issue regulated labour hire arrangement orders since December 2023, they could only take effect starting from 1 November 2024. Once an order of this kind has been made, certain obligations now arise for the host employer. There are exceptions to when an order can be made, including if the order is not fair and reasonable in the circumstances. A dispute about an order can be referred to the FWC. Anti-avoidance provisions apply to these orders.
Right to Disconnect
From 26 August 2024, the Right to Disconnect laws were introduced, which provide protections for eligible employees (employees of non-small businesses) for exercising positive rights to refuse monitoring, reading or responding to contact from the employer or third-party outside of their working hours.
New definitions of Employer and Employee (Independent Contractors)
From 26 August 2024, new section 15AA of the Fair Work Act 2009 (Cth) (FW Act) will contain a new definition of ‘employment’ and ‘employee’. The new section requires determination of the employer and employee, within the ordinary meaning of that expression, by ascertaining the real substance, practical reality and true nature of the relationship between the individual and the person. This means workers who were currently independent contractors could be employees, for certain purposes under the FW Act, after the new definition took effect and therefore, could enforce employee rights and entitlements against their employer.
New Casual Employee Definition
From 26 August 2024, a new definition of ‘casual employee’ was introduced to the Fair Work Act in section 15A. Under this definition, a person is a casual employee if, when they start employment:
– the employment relationship has no firm advance commitment to ongoing work, taking into account a number of factors, and
– they’re entitled to a casual loading or specific casual pay rate under an award, registered agreement, or employment contract.
Restrictions of Hiring Casual Employees on Fixed Term Contracts
From 26 August 2024, an employee cannot be hired as a casual on a fixed term contract if all of the following apply to them:
– they’re a member of the academic or higher education teaching staff of a higher education institution
– they’re not a state public sector employee
– they’re covered by the Higher Education Academic Staff Award, or Higher Education General Staff Award.
New Casual Conversion (Employee Choice) Pathway
From 26 August 2024, the new laws were introduced to allow casual employees to have a new pathway to full-time or part-time (permanent) employment under the National Employment Standards. The ‘employee choice pathway’ allows eligible casuals to notify their employer in writing of their intention to change to permanent employment. An employer can only refuse the notice for certain reasons. The old casual conversion pathway does not apply for the casual employees engaged on or after 26 August 2024 but still continues to apply for 6 months (12 months if employed by a small business) from 26 August 2024, i.e., until 25 February 2025 for casual employees of non-small business employers and until 25 August 2025 for casual employees of small business employers. This effective means that eligible casual employees can make a notification under the new pathway from 26 February 2025 (or 26 August 2025 if employed by a small business) to choose to be a permanent employee.
Scheduled Changes in 2025
Criminal underpayment laws start 1 January 2025
From 1 January 2025, intentionally underpaying an employee’s wages or entitlements can be a criminal offence. This does not include honest mistakes. The Voluntary Small Business Wage Compliance Code is now available to help businesses prepare and protect themselves. A small business employer will comply with the Code if they do not intend to underpay their employees. The Voluntary Small Business Wage Compliance Code can be accessed at: https://www.legislation.gov.au/F2024L01635/asmade/text
Right to Disconnect
From 26 August 2025, the Right to Disconnect will extend to the employees of small business employers giving them the right to refuse employer or third-party contact outside of working hours in some circumstances.
Superannuation
From 1 July 2025, the minimum Superannuation Guarantee (SG) will see another increase to 12%.
Paid Parental Leave Pay Scheme
From 1 July 2025, the amount of Parental Leave Pay available to families will increase again from 22 weeks to 24 weeks, with 3 weeks reserved for each parent/partner. Further, Moreover, the parents will be able to take up to 4 weeks of paid parental leave pay under this Scheme concurrently with the other parent/partner.
New Casual Conversion Pathway- Employee choice about casual employment
If eligible, a casual employee who was employed before 26 August 2024 can make a notification under the new pathway from 26 February 2025 (or 26 August 2025 if employed by a small business) to choose to be a permanent employee.
The BetterHR Advice team is here to assist with any questions relating to the above employment law changes. We wish you a prosperous 2025.
