New regulated worker functions: what small business owners need to know

Significant changes are on the horizon for the digital platform gig economy and the road transport industry. Starting from 26 August 2024, or a date to be proclaimed, new regulated worker functions will be introduced. 

These changes aim to improve the working conditions of 'employee-like' workers performing digital platform work and regulated road transport contractors.

Who are regulated workers?

Regulated workers fall into two main categories:

1. Employee-like workers performing digital platform work.
2. Regulated road transport contractors.

The law also introduces the sub-category of road transport employee-like workers. For more detailed definitions, you can refer to the Fair Work Act.

Which businesses do the new functions apply to?

The new regulated worker functions are Commonwealth legislation. In Western Australia’s industrial relations system, this legislation generally applies to incorporated businesses (such as those with a ‘Pty Ltd’ or ‘Ltd’ in their name), and does not apply to businesses such as sole traders, partnerships and trusts without a trustee company, which come under the state system.

In the case of the regulated worker functions, they will apply if any of the parties in the contract chain is a ‘Pty Ltd’ or ‘Ltd’ organisation.

New regulated worker functions

The new functions are designed to enhance protections for regulated workers. Here’s what you need to know:

• Registration of collective agreements: The Fair Work Commission will have the authority to register collective agreements, ensuring that workers' rights are protected under agreed terms.
• Setting minimum standards: The Fair Work Commission can now set minimum standards for regulated workers, including employee-like minimum standards orders, road transport minimum standards orders, and contractual chain orders. These standards aim to provide a fair and consistent working environment for all regulated workers.
• Dispute resolution: New functions include the ability to help resolve disputes. This covers unfair deactivation from a digital platform for employee-like workers and unfair termination of contracts for regulated road transport contractors.

These new functions will begin from 26 August 2024, with some changes starting later. 

For detailed information, see Regulated Worker Minimum Standards and Regulated Worker Disputes.

How to get involved

• Join the regulated worker user group: Share your ideas and provide feedback on how we can best implement these changes. Your input is invaluable in shaping the future of these regulations.
• Stay informed: Read more about preparations for the regulated worker changes. This section will include information about consultation processes and updates on the implementation.

The new regulated worker functions are a significant step towards improving the working conditions for those in the gig economy and road transport industry. 

As business owners, staying informed and engaged with these changes will ensure you remain compliant and support a fair working environment for your employees and contractors.

You can find a variety of resources on the new regulated functions, including a video presentation from Commission Members, on the Fair Work Commission page.

Article taken from - New regulated worker functions: what small business owners need to know | Small Business Development Corporation

Updated - 07 August 2024