We recently caught up with Kelly Salmon from Growth HR to get the lowdown on the latest HR shake-ups, especially around the Closing Loopholes Bill, which kicked off on 26 August 2024. And yes, there are some key changes you need to know to keep your biz running smoothly! Covering everything from whether your need to pay your subbies super, to casual employment changes, we chatted to Kelly to get a bit of an idea about what this might mean for Tradie based businesses.
The Closing Loopholes Bill is designed to tighten gaps in employment laws that have left some employees without proper protections. Passed in early 2024, this bill aims to improve worker rights across areas like casual employment, contractor relationships, and the right to disconnect.
With changes rolling out from 26 August 2024, it’s crucial for businesses to understand these updates and adjust their policies to stay compliant. But don’t worry—Kelly Salmon from Growth HR gave us the breakdown to make it all easier to digest!
Here’s what Kelly had to say:
1. Right to Disconnect
From 26 August 2024 (or 2025 for smaller teams), employees have the right to switch off after hours without worrying about work calls or emails. Time to ditch the ‘always-on’ culture!
What you need to do: Chat with your team about the new rule and update your policies, especially if certain roles need to respond after hours.
2. Casual Employment Redefined
Casual employees will now be judged on the ‘real deal’ of the employment relationship, not just the paperwork. Translation? Casual means no firm commitment to ongoing work. And employees can now push for permanent status after 6 months (or 12 for smaller businesses).
Heads up: It’s time to check your recruitment process and get your team clued up on the new ‘Employee Choice’ process.
3. Employee vs. Contractor
The new rules will focus on the ‘real nature’ of the relationship, so it’s not just about what’s in the contract. Contractors earning over $175k can opt out, but for others, disputes can go through the Fair Work Commission.
Action plan: If you’ve got contractors, now’s the time for a little relationship audit—make sure you’re clear on who’s who in your business.
Need More Advice?
Kelly and the team at Growth HR are on hand to help you navigate these changes and keep your business on the right side of compliance. Get in touch with Kelly at Growth HR for a chat and ensure you’re ready for what’s ahead!
This summary was adapted from Growth HR’s detailed guide on the key changes of the Closing Loopholes Bill effective from 26 August 2024.