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Changes to the Unfair Contract Terms regime

On November 9, 2023, the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 was enacted in Australia, introducing significant changes to the unfair contract terms (UCT) regime under the Australian Consumer Law. The legislation now imposes substantial financial penalties on businesses that include unfair terms in their standard form contracts, with potential fines up to $50 million, three times the benefit obtained, or 30% of adjusted turnover during the breach period if the benefit is indeterminable. Additionally, the UCT regime's scope has been expanded to include more small businesses and provides clearer guidelines on what constitutes a standard form contract and the application of terms.

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Wage theft
Wage theft

From 1 January 2025, a new provision will come into effect under the Fair Work Act 2009 (Cth) which makes it a criminal offence if an employer fails to pay an amount to an employee when due (such as wages), where it is proved beyond reasonable doubt that the employer intentionally did so.

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Workplace delegates
Workplace delegates

New rights and protections have been introduced for workplace delegates (being employees who are appointed to represent members of an organisation in the workplace).

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Regulating employee-like workers
Regulating employee-like workers

Recent changes for "employee-like" workers in the gig economy allow the Fair Work Commission to set minimum standards and handle disputes about unfair deactivation from digital platforms.

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Positive duty regarding sexual harassment
Positive duty regarding sexual harassment

Employers now have a positive duty to take “reasonable and proportionate measures” to eliminate sexual harassment in the workplace.

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Independent Contractor Changes
Independent Contractor Changes

Recent changes to independent contractor laws, effective from 26 August 2024, introduce a new definition of employment, requiring courts to assess the "reality" of contractor relationships. If contractors are deemed employees, they are entitled to backpay for employee benefits. Contractors earning above $175,000 can opt out of this definition.

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Casual Employment Changes
Casual Employment Changes

Recent changes to casual employment laws include a new definition of casual employees, effective from 26 August 2024, based on the absence of a firm commitment to ongoing work and entitlement to casual loading or pay. Casual employees can seek conversion to permanent roles after 6 months (12 months for small businesses).

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