Closing the Loopholes: Understanding the Risks of Sham Contracting
The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 introduces significant changes aimed at tightening regulations around sham contracting and extending protections to gig workers. For small businesses, understanding the differing definitions set by Fair Work and the ATO is crucial to avoid legal conflicts. The legislation broadens the definition of employer and employee to include ‘employee-like workers,’ granting gig workers rights such as minimum wage, penalty rates, and superannuation. This change means businesses must comply with these new requirements or face penalties. The article offers practical advice on reviewing contracts, implementing clear policies, and seeking legal advice to ensure compliance. By staying informed, both small businesses and gig workers can protect themselves under the new legal framework. Key points include:
Unions now have the right to enter workplaces to assist health and safety representatives and ensure compliance, regardless of employee count.
Union officials no longer need Fair Work Commission approval to visit your premises.
Employers must understand that union membership for employees is voluntary, and no coercion is allowed.
Discover how to manage these changes effectively, ensure smooth operations, and maintain a compliant workplace. Read the full article for detailed insights and practical tips.