ACFA Employer Guide - Independent Contracting

The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 includes changes to contracting arrangements. The amendments will introduce a new definition of employee into the Fair Work Act 2009 and a new jurisdiction allowing the Fair Work Commission to vary contract terms.

These changes include the following: a. a new definition of “employee” for the purposes of the Fair Work Act 2009 (FW Act)

·         a new jurisdiction enabling the Fair Work Commission to review and vary “unfair” contract terms.

·         new provisions broadening the offence of “sham contracting”, which broadly involves unreasonably mischaracterising the relationship of employment as one of contracting.

This guide is intended to help businesses navigate these changes. It is important that businesses and employers are familiarised with these changes. These changes will affect a wide range of businesses across different sectors.