The South Australian Business Chamber, working closely with the Australian Chamber of Commerce & Industry (ACCI), has played a key role in the debate over workplace relations reforms over the past nine months which culminated in the passing of the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill by Federal Parliament on Monday.
While the discussions covered a range of topics from casual definition and conversion to part-time provisions, EBAs, extending JobKeeper period flexibilities and green field agreements, only a significantly condensed Bill passed Parliament.
So, what does this all mean?
The Fair Work Act 2009 (Cth) will now contain a definition of casual employment and will impose a statutory entitlement for regular long-term casuals to request conversion to permanent employment. The definition provides that a casual employee is person:
Casual Conversion
The amended Act will require employers to offer conversion to permanent employment to casual employees who:
The offer to convert will need to match the regular pattern of hours. There are provisions where an employer is not obligated to offer the conversion but only on reasonable business grounds, which have now been defined.
Importantly, there will be an exemption for small business (less than 15 employees), who will not have to make the offer of casual conversion. Simply put this is removing an administrative burden from small business. We still strongly recommend you pay close attention to you long-term casual employees as this exemption does not mean that the casual employee is not entitled to request casual conversion.
Casual loading offset provisions (double-dipping)
Most important, there is now provisions to prevent so called double-dipping which had arisen previously where casual employees who were deemed to have actually been permanent employees were attempting to obtain permanent employee entitlements as well as the casual loading. The double-dipping issue has been rectified by the provision of an offset where an employer may offset any leave entitlements owed to an employee (where that casual employee is deemed to have actually been a permanent employee) against the casual loading that was paid to the casual employee.
It is important to note that in order to use the offset benefit, it must be made clear that the casual loading was paid to the employee instead of those leave entitlements. The best way that an employer can demonstrate this is to identify this in the employment contract.
Fair Work Ombudsman – Casual Employment Information Statement
The Act will now require that the Fair Work Ombudsman prepare a Casual Employee Information Statement. Employers will be required to provide this statement to casual employees as soon as practicable after the employee starts employment.
What do Employers need to do?
Employers are strongly encouraged to review their casual employee arrangements. This includes reviewing whether or not current casual employees need to be offered casual conversion and turning your mind to how you are going to track this in the future. Employers also need to review their existing casual employment contracts and ensure they are compliant with the new provisions for casual employment.
Watch this space – there’s more to come
The South Australian Business Chamber knew that clearing up the casual definition was the most important aspect of the workplace relations reforms, and we worked hard to ensure that South Australian Senator Stirling Griff was supportive of this aspect in lending support to the final version of the Bill. Businesses have been looking for certainty against double dipping claims by casual employees for many years and the Bill has provided that clarity to ensure existing court cases do not result in a casual employee deemed to have been full-time being eligible for both casual loading and full-time worker entitlements.
The South Australian Business Chamber will continue to work with ACCI to ensure that all the other key workplace reform options which did not make their way through Parliament are not forgotten. These are key enablers of future economic growth, particularly during a period of continuing uncertainty for employers as we deal with the pandemic period and slow vaccine rollout. The additional reforms were fair and reasonable and were about providing flexibility and opportunity for both employers and employees. Australia’s workplace relations reform agenda cannot end here.
How can the South Australian Business Chamber help
Need help determining if these changes will impact your business? Working out what is reasonable business grounds? Updating your employment contracts? contact our Business Advice Hotline on (08) 8300 0000 (select option one).
Our Senior Consultants can assist you with reviewing your current casual employee patterns, creating review mechanisms for future employees and drafting/reviewing your casual employment contracts to ensure you are complaint with the new provisions. To learn more about our consulting services contact ourBusiness Advice Hotline on (08) 8300 0000 (select option one).
Not a the South Australian Business Chamber member? Access our FREE Industrial Relations Phone Advice Line and COVID-19 Resources:
We recognise that more support is needed by businesses across Australia as a result of COVID-19 pandemic. In partnership with the Fair Work Ombudsman, the South Australian Business Chamber is here to provide industrial relations advice to businesses covered by Commonwealth Workplace Laws. You don’t need to be a the South Australian Business Chamber Member: all you need to do is contact one of our Workplace Advisers on (08) 8300 0000 (select option 2).
If you are not a the South Australian Business Chamber member now is the right time to join. Find out more about The South Australian Business Chamber Membership and the great benefits by calling (08) 8300 0000.
