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ARTICLE · 04 MARCH 2024

Uncertain identity - the quagmire for business and workers

Changes made by the Closing Loopholes No 2 Act and the implications for business and workers.

AustraliaEmployment and HR

A key driver for business, the economy and workers, is having certainty of the operating environment in which all parties engage. Uncertainty inhibits informed decisions, thwarts investment and exposes all parties to the risk of unexpected costs and outcomes.

The recent High Court of Australia decisions in CFMMEU v Personnel Contracting Pty Ltd [2022] HCA 1 and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 provided workers and businesses greater certainty as to their status as employees or independent contractors, based on the terms of their contract. As the Court, conscious of its responsibilities, said:

It is the task of the courts to promote certainty with respect to a relationship of such fundamental importance.

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