“Casual.” “Contract.” “Temporary.”
These labels may no longer protect your Employer from paying you.
In the second part of our series on the Labour Laws, we focus on the rights of workers. If you’ve spent years showing up, doing the work, and quietly wondering whether the law actually has your back — this article is for you.
Under the current law, the definition of retrenchment (or redundancy) is relatively narrow, largely centred on the concept of “surplus labour.” The proposed amendments expand this definition to expressly include situations such as:
- Business restructuring or reorganisation.
- Automation, digitisation, and use of AI.
- Business closures or sale of operations.
- Economic downturn, reduced demand, or declining markets.
- Events such as force majeure (Act of God) or operational disruptions.
One of the most consequential shifts in the 2026 Severance Amendment Bill is the dramatic expansion of who is covered and what counts as redundancy. Where the current law has created uncertainty, the new law focuses on expanding worker protection. In particular:
- Casual workers will be covered if they are part of the regular workforce and work at least 100 days a year for three consecutive years.
- Fixed-term workers will remain excluded only where contracts end naturally; if terminated for redundancy, they will be entitled to benefits.
- Successive fixed-term contracts will count as continuous service for calculating entitlements.
- Service will also be treated as continuous where a worker is re-engaged by the same employer within less than three months.
For HR leaders and business owners, this is a pivotal moment to audit your workforce classifications, contract structures, and internal policies. The new law’s amendments to the notice period and approval process, introduce greater structure and accountability. What was previously a largely employer-driven process is now subject to increased oversight.
At Moore TT, we support organisations in reviewing workforce structures, identifying compliance risk, and aligning employment practices with the incoming framework — before it catches them off guard. Is your workforce classification strategy still fit for purpose? Let Moore TT help you find out.
