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By Simon Obee, Head of HR Advisory at Employment Hero and Principal Lawyer at EI Legal
2024 has brought monumental shifts in Australia’s employment laws. With new legislation like the Right to Disconnect, reforms to casual employment, and the upcoming criminalisation of wage theft, HR managers are navigating one of the most complex periods in recent history.
Now, more than ever, it’s important that small and medium-sized enterprises (SMEs) know their employer obligations. SMEs are the backbone of our economy, and it’s crucial that they have access to the tools and resources needed to navigate these new laws.
Changes to Casual Employment
The Closing Loopholes Bill has brought significant changes to how casual employment is defined. Previously, employment contracts determined casual status, but the new laws now focus on the actual nature of the working relationship. Additionally, the casual conversion process has shifted, placing the responsibility on employees to request a move to permanent employment.
Staying across the new requirement to send out the Casual Employment Information Statement (CEIS) multiple times during an employee’s employment can turn into an admin nightmare. Luckily, Employment Hero takes the admin out of the process by automatically sending you reminders at the correct intervals of your casual team members employment, asking if you want to re-issue the CEIS.
With so many changes now in effect, having employment software in place to handle these updates is one of the easiest ways to manage your obligations. It’s also important to be aware that the risk of non-compliance carries penalties of up to $93,900 per breach.
The introduction of the Right to Disconnect
One of the biggest legislative changes is the Right to Disconnect, which came into effect in August 2024 for businesses with more than 15 employees, and will extend to smaller businesses by August 2025. This law gives employees the right to disengage from work-related communications outside of their working hours, unless having to respond is deemed reasonable.
The law presents challenges for HR managers who are trying to maintain operational continuity, but are also trying to navigate compliance with this new legislation. Employers need to implement clear policies on after-hours communication and train managers on when it’s appropriate to contact employees outside of work hours.
Wage Theft Legislation – Preparing for 2025
Although no exact date has yet been set, from as early as 1 January 2025, the Australian government may commence new legislation to criminalise wage theft. Severe penalties could be on the line for businesses that deliberately underpay their employees, with up to 10 years in prison. Unintentional wage underpayments still carry significant penalties too.
The point of all of this is that paying your team correctly is absolutely essential. You want your team to trust you and the payroll system you use, and you want to minimise the risk of non-compliance.
Thankfully, technology is now built to support businesses in coping with the complexities of Australia’s current employment landscape. Many businesses who pivot to digitising their HR and payroll processes breathe a sigh of relief knowing that everything is managed in one place.
Simplifying Employment for SMEs
Employment Hero’s mission is to make employment easier and more valuable for everyone. As HR professionals grapple with the evolving legal landscape and the pace of change that AI is bringing, an Employment Operating System (eOS) is essential. Think of it as an operating system that integrates every employment process into one platform, reducing the burden of HR admin so you can focus on other strategic work.
Our survey data shows businesses who switch to our seamless platform experience a 291% return on investment within 3 years, and benefit from significant operational efficiencies.
There is so much change in Australian employment right now. Our operating system simplifies everything employment-related onto one platform so you can focus on what you’re great at: nurturing and growing your team and business.
Learn more about how Employment Hero can support your business with managing these changes under the Closing Loopholes Bill.
Disclaimer: The information in this article is relevant as at 9 October 2024, and has been prepared by Employment Hero Pty Ltd ABN (11 160 047 709) (Employment Hero). The views expressed herein are general information only and are provided in good faith to assist employers and their employees. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article.
