What safeguards are there to stop employers avoiding the new rules by reclassifying workers as self-employed?

The Act includes measures intended to discourage employers from avoiding employment rights by wrongly classifying workers as self-employed.

A worker's legal status is determined by the reality of the working relationship, not simply by the label used in a contract. An employer cannot avoid employment rights simply by describing someone as self-employed if, in practice, they meet the legal definition of a worker or employee.

The Act established the Fair Work Agency (FWA), which launched on 7 April 2026 and brought together a range of existing labour-market enforcement functions. The FWA can investigate and enforce the employment rights within its statutory remit.

The FWA can investigate arrangements within its enforcement remit, but employment status ultimately depends on the facts of the working relationship and may need to be determined by an employment tribunal or court.

What this means for union reps

• Employers should not be able to avoid new employment rights simply by changing a worker's contractual status or job title.
• Reps may need to help members identify situations where the reality of the working relationship differs from the contractual label applied by the employer.
• The Fair Work Agency provides an additional enforcement route for rights within its remit, strengthening the overall framework for protecting workers.