What changed
Over the past two years the Fair Work Act has been amended in stages, and many of the changes were aimed squarely at how smaller businesses engage staff. Most employers we speak to have heard of them. Far fewer have updated their contracts.
Casual employment
The definition of a casual employee now looks at the real substance of the working relationship, not just the label in the contract. A person engaged as a casual who works regular, predictable hours may be entitled to ask to convert to permanent employment, and there are rules on how and when an employer can refuse. If you rely on long-term casuals, review each arrangement and document the reasons it remains genuinely casual.
Fixed-term contracts
Limits now apply to how long and how many times a fixed-term contract can be used for the same role, with exceptions for specific situations such as genuine project work or covering leave. Rolling fixed-term contracts as a way of avoiding permanent employment is no longer a safe strategy.
Right to disconnect
Employees now have a right to refuse to monitor or respond to contact outside working hours unless the refusal is unreasonable. Reasonableness depends on the role, the reason for contact and how the employee is compensated. The practical answer is a short written policy and a conversation with managers about expectations.
Compliance is cheaper than a claim. Every one of these changes is easier to handle in the contract than in the Commission.
What to do now
Audit your casual workforce. Check every fixed-term contract against the new limits. Issue a one-page right to disconnect policy. Update your template contracts so new hires start on compliant terms. If you would like us to run that audit for you, it is a fixed-fee piece of work.
This article is general information only and is not legal advice. Contact YSA Partners for advice on your circumstances.