The Government’s new industrial relations laws could be set to become law if they manage to convince the Greens and key crossbenchers of the necessity for laws that will change workplaces across Australia. 

Closing Loopholes Bill No 2, which is set for debate next week and empowers casuals to convert to permanent and gig workers and truck drivers to set minimum pay and conditions. 

The bill extends the power of the Fair Work Commission to set minimum standards for casual employees and, controversially, change the definition of a casual employee. 

Under the laws employees who have worked for 6 months (or 12 months in a small business) will be able to choose to notify their employer where their working arrangements have changed and, at that point in time, they believe they no longer meet the definition.  

The laws also contain the “right to disconnect” which will allow workers to “switch off” to employers outside of work hours. 

Greens senator Barbara Pocock has said technology means workers can be contacted any time day and night and the reforms are necessary to deal with the occupational, health and safety implications of this. 

Senator Pocock. Image: Australian Parliament. 

Under the Closing Loopholes Bill, employees on a contract that terminates after “an identifiable period” cannot be casuals. 

While the bill enhances a worker’s capacity to challenge unfair contract terms and would bring greater enforcement and penalties for sham contracts. 

Big Fight Over Transport Workers 

The Australian Trucking Association has lauded the bill saying the road transport sections of the bill would enable the Fair Work Commission to make minimum standards orders for owner drivers. 

The Senate Education and Employment Committee published report released this week report proposes that the bill be amended to empower the commission to make orders in relation to the whole contract chain, not just owner drivers.  

ATA CEO Matthew Munro said that embedding the power in the bill would provide more certainty for the industry, as the ATA argued in its submission. 

Matthew Munro: Australian Trucking Association 

"Road transport industry contractual chain orders will be as important as road transport minimum standards orders. Accordingly, the Act should set out the commission's powers, rather than leaving them to regulation later," Mr Munro said.  

However, The Australian Livestock and Rural Transporters Association s pushing for the exemption after arguing there is a precedent for it in NSW owner-driver laws that exclude transport of milk, livestock and produce from primary producers. 

Changes strongly welcomed by Unions 

New ACTU analysis of ABS data confirms less than 5% of casual workers who want permanent jobs can secure one. 

There are 2.73 million casual workers in Australia – the highest number ever – and 70% of casual workers have been with their employer for more than 12 months. Of these long-term casuals, 29% – or 554,000 workers – want to change to permanent work, the ACTU says 

Image: Herbert Smith Freehills. 

“For too many workers, the result is spending years or even decades as a casual – even though they’re doing regular hours and should be a permanent employee. In that time, these workers are missing out on important entitlements like paid leave and job security” it said in a statement. 

Meanwhile The country’s largest peak body for the retail sector, the Australian Retailers Association (ARA) has thanked the crossbench and opposition senators for their common-sense approach to the Closing Loopholes inquiry,. 

ARA CEO Paul Zahra said “Unfortunately, the governments’ recommendations seek to expand the scope of this legislation and threaten to make a bad bill even worse. 

“So, we are urging the opposition and crossbenchers in both houses not to pass the legislation with these additional measures. 

“Our primary concern remains the proposed changes to casual work arrangements, particularly for small businesses. These complex changes would create unnecessary confusion without any material upside in terms of higher conversion rates to permanent employment.