Legislation referred to as ‘Closing the Loopholes (number 2)…’ was passed by Parliament late in February 2024. This article provides a summary of 2 of those changes: employees will have the right to disconnect and casual employees will have the right to convert to permanent employment.

The ‘right to disconnect’ – effective 26 August 2024
(There is a delayed start date for small businesses effective from 26 February 2025. N.B. a small business is defined as a business with a headcount of 15 employees or less - including casuals)

Employees will have the ‘right to disconnect’ from answering work-related phone calls, responding to emails or text messages outside of their agreed hours of work if they choose to.
The ‘right to disconnect’ will be a ‘workplace right’ (a protected attribute under the Fair Work Act 2009 (Cth)) that may assist employees to balance their work, personal and family responsibilities.

How will this new ‘workplace right’ impact your business?

You’ll still be able to email and contact your employees after hours. What you won’t be able to do is challenge or reprimand your employees if they choose not to respond to your communications (or your customers/clients, outside of their agreed work hours). If you do, an employee may claim adverse action was taken by you because they chose to exercise the ‘right to disconnect’ and not respond to you until they ‘officially’ return to work.

What should we do to get ready?

Consider how this ‘right to disconnect’ may affect your business. By way of example:

  • Talk with your managers and employees about the ‘right to disconnect’
  • Review work rosters. What if an employee calls in sick?

Changes to casual employment – effective 26 August 2024
(There is a delayed start date for small businesses effective from 26 February 2025. N.B. a small business is defined as a business with a headcount of 15 employees or less - including casuals)

Employees engaged as ‘casuals’ will soon be able to provide notification to their employer to convert to permanent employment after 6-months (or after 12 months for a small business).

The right of conversion, from casual employment to permanent employment, will be a ‘workplace' right.

What is the new definition of casual employment?

  • The employment relationship is characterised by an absence of a firm advance commitment (i.e. a regular pattern of working hours) to continuing indefinite work; and
  • The employee is entitled under a fair work instrument or contract of employment to casual loading or specific rate of pay for casuals.

How will this new ‘workplace right’ impact your business?

A casual employee may provide you with written notification requesting their casual employment convert to permanent if they:

  • believe they are no longer a casual employee due to their ‘regular pattern of working hours’; and
  • meet the minimum employment period (6-months or 12-months for a small business); and
  • they want permanent full-time or part-time employment.

Can an employer refuse (a casual employee’s notification to convert to permanent employment)?

You may only refuse if:

  • you believe the employee is still a ‘casual’ employee in accordance with the new definition; or
  • there are fair and reasonable grounds for not accepting the notification. For example:
    • you would need to make significant changes to the way work is organised in your business; and/or
    • the operations of your business would be affected significantly; and/or
    • you would need to make substantial changes to the employee’s terms and conditions of employment to make sure you did not contravene a provision of the relevant modern award or enterprise agreement that would apply.

What’s changed for employers?

There will be no requirement to issue your ‘casual employees' (on or before their 12-month anniversary) with an offer to convert their employment from casual to permanent (if you do not want to make an offer of permanent employment to a casual employee).

Casual employment information statement

There will be a new requirement, to provide your casual employees with a copy of the Casual employment information statement (available from the Fair Work Ombudsman’s website https://www.fairwork.gov.au/starting-employment/types-of-employees/casual-employees at the commencement of employment and again after 6-months of service or 12-months of service, for a small business.

Ulton HR Consulting Services can help
We partner with you to understand your business. We can provide HR/ Work Health and Safety (WHS) advice and support to assist you with meeting your employer obligations and comply with workplace legislative requirements.

If you have questions or concerns about the ‘right to disconnect’ or the changes to casual employment or you require HR/WHS advice, contact Christine Guy, HR Consultant on (07) 4154 0413 or email cguy@ulton.net

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