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There has been a lot of media coverage about the Howard Government’s changes to unfair dismissal laws. Unfair dismissal remedies are no longer available to employees terminated by a "constitutional corporation" with less than 100 employees. And even if an employee is terminated by a constitutional corporation with more than 100 employees, they are precluded from making an unfair dismissal claim in the first six months of employment, which is known as the qualifying period.

In Australia there are a significant number of independent contractors, with estimates ranging from 800,000 to 2 million. The Federal Government has long criticised the states for their legal arrangements governing contractors. The criticism comes from the fact that state laws drag contractors into the sphere of employment law regulation.