Looking forward: Casuals, the gig economy and sham contracting

What will change?

• The definition of "casual worker" will be amended, such that casual employees are more likely to be considered part-time or full-time employees. The new definition would be an objective test based on the employee's ongoing employment relationship, as opposed to the terms and conditions agreed at the commencement of employment.
• "Sham" contracting laws will be strengthened to prevent employers from misrepresenting a contract of employment as an independent contracting agreement.
• Additional provisions inserted into the FW Act to extend protections and provide minimum standards to a range of different "employee-like" workers, including those in the gig economy, and other "employee-like" forms of work.

Background

The government has indicated that it will introduce policy changes to prevent insecure employment and provide workers with greater security.

Actions

• Start reviewing the working arrangements of any casual employees in your organisation to determine whether any risk of misclassification exists (eg. where casual employees are working regular hours and shifts over an extended period).
• Consider whether any offers of casual conversion should be made or are appropriate for employees.
• Update your independent contractor agreements and review your engagement processes to ensure that appropriate engagement models are chosen for particular roles.
• Review onboarding arrangements for contractors and ensure the day-to-day engagement of these workers is consistent with their contractual terms. Only true "independent contractors" should be engaged as such.

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