The biggest workplace reform in a decade
Closing Loopholes hub
Two Acts (December 2023 and February/August 2024) reshaped Australian workplace law: criminal wage theft, a new employee/contractor test, same-job-same-pay orders, a new casual definition, employee-choice conversion, tightened sham contracting, and more. The complete map.
⏰ Wage-theft criminal offence in force from 1 January 2025
The Fair Work Legislation Amendment (Closing Loopholes) Act 2023 and the Closing Loopholes No. 2 Act 2024 are the most significant reforms to the Fair Work Act since its enactment. They commenced in stages across December 2023, February 2024, August 2024 and January 2025.
Headline changes: from 1 January 2025, intentional underpayment of employee entitlements is a criminal offence (up to 10 years imprisonment for individuals). From 26 August 2024, a new statutory definition of 'employee' restores the whole-of-relationship test and a new casual definition plus an employee-choice conversion pathway took effect. From 1 November 2024, the Fair Work Commission began issuing 'same job, same pay' regulated labour-hire arrangement orders. Sham-contracting protections tightened from 27 February 2024.
Almost every employer is affected by at least one change. Use the articles + tools below to scope your exposure, then run the Compliance Fingerprint for a personalised obligation list.
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FAQ
When did intentional wage theft become criminal?
1 January 2025, under amendments to the Fair Work Act made by the Closing Loopholes reforms. The offence carries up to 10 years imprisonment for individuals.
What is the new employee/contractor test?
From 26 August 2024 the Fair Work Act has a statutory definition of 'employee' that restores the whole-of-relationship test — courts now look at the real substance and practical reality of the relationship, not just the written contract. Workers above a high-income threshold can opt out via written notice.
Does same-job-same-pay apply to my labour hire?
It can. The Fair Work Commission can make a regulated labour-hire arrangement order requiring a labour-hire provider to pay no less than the host's enterprise-agreement rate for the same work. The first orders began taking effect from 1 November 2024. Genuine service contractors are not covered; small-business hosts have a partial carve-out.
Has the casual definition changed?
Yes. From 26 August 2024 a new statutory casual definition focuses on the real substance of the relationship, not just the contract. An employee-choice pathway also lets eligible casuals give written notice to change to permanent — the employer must respond within a statutory window.
Is there a safe harbour for small business?
Yes — the Voluntary Small Business Wage Compliance Code provides a safe harbour from criminal referral for small business employers (generally under 15 employees) who comply with it. It does not remove civil penalty exposure or back-pay liability.
What about sham contracting?
Sections 357-359 of the Fair Work Act continue to prohibit sham contracting. From 27 February 2024 the defence to the reverse onus tightened — an employer must show the misrepresentation was reasonable considering their size, resources and the engagement.
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