Clearer rules on whether someone is a contractor or an employee
You can now use a new gateway test to check if your worker is a contractor or an employee.
The test covers such things like what is in their written agreement and when they can choose to work.
The gateway test aims to deliver more upfront certainty for both you and your worker, and reduce the likelihood of disputes over employment status.
New employees can now start on individual terms immediately
Your new employees can now choose to go on an individual employment agreement from their first day.
They no longer need to start on a collective employment agreement for their first 30 days.
You still need to give your new employees information to help them understand union membership, but you no longer need to provide the previous “active choice” form.
Changes to rules about personal grievances
There have been changes to the rules for personal grievances.
A personal grievance is an action that an employee can take against a current or former employer when they have an employment issue they are unable to resolve.
- Employees who earn $200,000 or more a year under new employment agreements can no longer raise a personal grievance related to unjustified dismissal (or unjustified disadvantage connected to their dismissal).
- You and your employee can agree to keep dismissal protections if you want to.
- Employees on current agreements have 12 months before the threshold applies to them. This gives you both time to renegotiate agreements if needed.
There are also stronger consequences where an employee’s conduct contributed to a personal grievance.
What you may need to do now
You may need to review and update:
- your individual employment agreement templates
- your hiring and onboarding steps
- your policies on conduct, performance, and disciplinary processes
- how you engage and work with contractors.