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The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 grants the Fair Work Commission new jurisdiction over platform workers, independent contractors, and casual employees effective August 26, 2024. Key changes include: FWC authority to set minimum standards for gig workers and road transport contractors; power to set aside unfair contract terms for independent contractors (except high earners who opt out); a new statutory definition of casual employee with dispute resolution for casual-to-permanent conversion; and a new right to disconnect allowing employees to refuse contact outside working hours. Employers must review contractor agreements, casual classifications, and after-hours contact policies.
The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 took effect on 2024-08-26, granting the Fair Work Commission (FWC) new jurisdiction over platform-based workers, independent contractors, and casual employees. The changes introduce minimum standards for gig workers, unfair contract term protections for contractors, a statutory definition of casual employment, and a right to disconnect for all employees.
Who is affected
Platform-based workers in digital labor platforms (ride-share, delivery, on-demand services) and road transport contractors are now regulated workers under FWC jurisdiction.
Independent contractors across all industries are subject to FWC review of unfair contract terms, except contractors earning above the high income threshold who opt out of this protection.
Casual employees under the new statutory definition, including those eligible for casual-to-permanent conversion.
Employers engaging any of the above categories, including digital platforms, road transport principals, and businesses with casual workforces.
What's changing
| Category | New FWC Power | Effective Date |
|---|---|---|
| Regulated workers (gig/platform) | Issue minimum standards orders and guidelines; register collective agreements; adjudicate unfair deactivation disputes | 2024-08-26 |
| Road transport contractors | Issue contractual chain orders and guidelines (heard by Expert Panel) | 2024-08-26 |
| Independent contractors | Set aside or vary unfair contract terms (workplace relations matters only); high-income contractors may opt out | 2024-08-26 |
| Casual employees | Resolve disputes over casual-to-permanent conversion under new statutory definition | 2024-08-26 |
| All employees | Refuse contact outside working hours; FWC can issue stop orders and hear general protections claims | 2024-08-26 |
Section 15AA of the Fair Work Act 2009 now establishes a statutory test for determining employment relationships, applicable across all FWC functions where employment status is disputed (except for high-income contractors who opt out).
What NEO partners and clients should do
- Review contractor agreements for potentially unfair terms before 2024-08-26 or as soon as practicable thereafter. Identify terms that would constitute workplace relations matters if the contractor were an employee.
- Audit casual employee classifications against the new statutory definition. Document casual-to-permanent conversion assessments for eligible workers.
- Update after-hours contact policies to comply with the right to disconnect. Train managers on when employees may refuse contact outside working hours.
- Platform operators: Prepare for potential minimum standards applications and unfair deactivation claims. Review deactivation procedures and contractual terms for regulated workers.
Sources
- Fair Work Commission: https://www.fwc.gov.au/about-us/new-laws
