Business braces for new IR rules
25 Aug 2024
|Media Release
Australia’s largest and most representative business network says new workplace rules which come into effect tomorrow are complex and will impose another layer of regulation on businesses, especially small businesses.
The Australian Chamber of Commerce and Industry (ACCI) says the new rules represent the biggest change to workplace laws in decades.
The changes include the right for employees to disconnect, a new definition of casual employees, a new definition of an employee versus an independent contractor, and new standards for the gig economy and the road transport industry.
ACCI chief executive officer Andrew McKellar said businesses are already doing it tough and these changes create more uncertainty and confusion.
“Our recent poll found almost half of small business owners considered closing in the past 12 months, these changes could be enough to send them to the wall,” Mr McKellar said.
The most controversial of these changes is the ‘right to disconnect’ law.
The ‘right to disconnect’ will give employees the right to refuse to monitor, read or respond to contact or attempted contact from an employer or a third party outside work hours, unless that refusal is unreasonable.
Mr McKellar described the new ‘right to disconnect’ laws as a thought bubble by the Greens.
“The ‘right to disconnect’ was a last-minute amendment by the Greens which the Government hurriedly accepted to get the broader workplace changes through Parliament.
“Businesses were not consulted on this major change to the workplace,” said Mr McKellar.
He also said changing the definition on casual employment is not straightforward and could disrupt the flexibility both employers and employees benefit from in the workplace.
“The definition of a ‘casual employee’ now requires case-by-case interpretation and is confusing for both employers and employees.
“The unintended consequences of this change may result in businesses steering away from employing casuals due to the complexity of the definition and to avoid being caught on the wrong end of an interpretation.
“This is bad for business and bad for those workers who are looking for flexibility.”
Mr McKellar described the changes to the definition of an employee as unnecessary and will create uncertainty.
“This change will impact businesses that rely on independent contractors, who in time may be converted to employees under these changes.
“That will cost businesses more by having to pay employees who were former contractors additional entitlements and create more regulation.”
There will also be changes for workers in the gig economy and the road transport industry with the Fair Work Commission able to consider applications for minimum standards for workers commencing tomorrow.
The government has already said that these changes will see an increase in the price of a pizza for example.
Mr McKellar said confusion will be compounded if the New South Wales government follows through on its own changes to introduce minimum standards for gig workers.
“What they propose is entirely duplicative and likely to be struck down by federal laws.
“Further consideration of this vanity project by the New South Wales government is a waste of time and resources, not least for New South Wales taxpayers,” Mr McKellar said.
Mr McKellar said ACCI will be monitoring all the changes once they take effect tomorrow and seeking feedback from businesses through ACCI’s business chamber network.