Top HR Legal Changes in 2024

It’s a wrap! The Top HR Legal Changes in 2024. Know the Laws that were introduced in 2024 and take action!  

A 27% spike on Fair Work Cases since 2023! You deserve to have peace of mind in the rapidly changing HR compliance Landscape. At Impact HR, we are committed to supporting small and medium businesses by keeping them informed of evolving employment laws. Here’s a quick overview of the key updates for 2024, covering everything from employee rights to wage compliance and sexual harassment. Take action now and stay ahead of these changes! 

Right to Disconnect (Effective 26 Aug 2024 for non-small businesses, 26 Aug 2025 for small businesses): 

• Key Point: Employees can refuse contact outside work hours unless unreasonable. Disputes can be resolved via the Fair Work Commission. 

• Action for Business: Update communication policies to clarify expectations for contacting employees outside of work hours. Ensure managers are trained on respecting employees’ right to disconnect and handle any disputes fairly. 

Sham Arrangements (Effective 26 Aug 2024): 

• Key Point: Employers cannot force full-time/part-time employees to switch to casual roles. Penalties include fines up to $93,900 for individuals and $469,500 for businesses. 

• Action for Business: Review employment contracts to ensure no misleading casual arrangements are in place. Maintain proper employment classifications and ensure employees’ entitlements are clear and protected. 

Casual Employee Conversion (Effective 26 Aug 2024): 

• Key Point: Casual employees working regular shifts for 6 months can request conversion to full-time or part-time status. Businesses with fewer than 15 employees must offer this after 12 months. 

• Action for Business: Set up a process to track casual employees’ work patterns and initiate conversion conversations at the required intervals. Ensure employees are informed of their rights, and document responses to any conversion requests within the required 21 days. 

Independent Contractor Definition (Effective 2024): 

• Key Point: A new test will determine whether a worker is an employee or contractor. Misrepresentation of employment status can result in penalties. 

• Action for Business: Review all current contracts to ensure correct classification of workers. Ensure compliance with the new “whole of relationship” and “start of relationship” tests. Ensure that contractors have appropriate agreements and avoid misclassifying employees. 

Sexual Harassment and Employer Liability (Effective 2024): 

• Key Point: Employers may be liable for legal costs in sexual harassment cases, even if only partially successful. 

• Action for Business: Strengthen sexual harassment policies, provide Respect@Work training to all employees, and create clear reporting channels. Act swiftly and transparently when complaints arise, seeking professional advice to minimise risks of costly litigation. Ensure a proactive approach to fostering a safe and respectful workplace. 

Criminalising Wage Underpayments (Effective 1 Jan 2025): 

• Key Point: Intentional wage underpayments will be a criminal offence, with penalties up to 10 years in prison or $7.825 million for companies. Small businesses are protected from prosecution for honest errors under the Voluntary Small Business Wage Compliance Code. 

• Action for Business: Conduct a thorough review of wage practices, ensure all employees are paid accurately and on time, and consider implementing regular audits. Small businesses should adhere to the Voluntary Small Business Wage Compliance Code to avoid criminal charges. 

At Impact HR, we’re here to help you navigate these changes with ease, so there’s nothing to worry about. If you need any assistance, don’t hesitate to reach out to us at 1300 474 672 or email us at info@impacthr.com.au. We’re more than happy to support you as you focus on what matters most—your business and your people.