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W O R K P L AC E R E L AT I O N S
UNDERSTANDING IMPENDING NEW IR LAWS
The Federal Industrial Relations Minister, Christian Porter, has introduced legislation that will have a significant impact on employers when it is passed. In particular, MTA members need to be fully aware of impending industrial relations reforms that govern the employment of casual workers. While the draft legislation provides greater flexibility and certainty for employers, there are a range of compliance issues that must be understood and double checked.
DEFINITION CHANGES There is now a risk that you could pay the higher rate for casuals, but then be required to pay leave entitlements as well. For the first time, the proposed legislation would introduce a statutory definition of “casual”. This relates to whether or not, when a person was first employed, the offer of employment was made on the basis of no advanced commitment of continuing work, or any great pattern of work. The second impact of the legislation is to ensure that a casual loading you may pay to an employee can be offset
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against any leave entitlement. That means if you do get your classification wrong, and assign a person as a casual when they are not, you can offset that casual loading against leave entitlements. That means an employer does not end up making double payments. Thirdly, the legislation introduces “casual conversion” for every casual. This is where, subject to certain criteria, a casual that has regular and systematic employment for six to 12 months depending on the sector, has a right to convert to a permanent role. On the other hand, there is much more protection for employers who have offered the conversion, and it has been refused, to be clear that the person remains a casual.
PART TIME EMPLOYMENT CHANGES In terms of employing casuals, a stumbling block for many businesses has been part time employment under the Vehicle Repair Services and Retail Award. One of the key stumbling blocks has been where someone is part time and is employed for, say, 20 hours a week. Then for a few weeks, you need them to work 25 hours. Currently, you have to pay them the overtime rate for that additional work.
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