Understanding unfair deactivation and termination ‘paramount’ for HR

HR Leader recently spoke to Stephen Roebuck, associate director of consultancy at Peninsula Australia, about the changes to the landscape of the Australian gig economy and how HR teams across the country must be aware of their new obligations around the termination of regulated workers.

“Understanding unfair deactivation and termination for regulated workers is now paramount for HR professionals, as it directly impacts how businesses manage them. Similar to unfair dismissal protections for employees, these new regulations extend safeguards to eligible employee-like workers on digital platforms and road transport contractors,” Roebuck said.

“HR must be familiar with the mandatory codes, which serve as best practice guidelines. These codes mandate processes like providing warnings and allowing workers to respond before deactivation or termination decisions are made. Failure to adhere to these guidelines can result in significant repercussions.”

“The Fair Work Commission (FWC) possesses the power to order the reactivation of workers, mandate new contracts, and restore lost pay. This means HR professionals must ensure that termination and deactivation procedures are not only legally sound but also procedurally fair, minimising the risk of costly and reputation-damaging disputes.”

According to Roebuck, businesses themselves will have to take a multifaceted approach if they hope to avoid workplace disputes moving forward.

“Businesses need to take a proactive and multifaceted approach, implementing robust HR policies to avoid disputes. They must recognise that the landscape has shifted, and a clear, documented framework is now essential,” Roebuck said.

“The first step is to reset behavioural expectations. This involves clearly defining and communicating policies, procedures, and codes of conduct.”

“By establishing a transparent set of rules, they can create a foundation for consistent discipline and, if necessary, the lawful termination of a regulated worker’s services. This leaves less room for ambiguity and provides a solid basis for any actions taken.”

Ensuring that management and leaders within organisations are trained and ready to deal with any disciplinary measures through the correct processes can be crucial.

“Businesses also need to ensure management is trained to deal with disciplinary issues and the process for termination in accordance with the respective code, including providing the regulated worker with warnings, show cause notices or preliminary deactivation notices and compliant termination letters.

“Meticulous documentation should be non-negotiable. Every discussion, warning, and interaction must be documented and attached to the worker’s file. This documentation serves as crucial evidence in the event of a dispute, providing a clear and verifiable record of the business’s actions,” Roebuck said.

“By prioritising clear communication, comprehensive training, and thorough documentation, businesses can be at the forefront while ensuring compliance and fairness.”

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.