This isn't a hypothetical protection anymore — a Uber driver has already won compensation for unfair deactivation under the new law, and the 21-day window to challenge one is tight.
Federal Framework: The Closing Loopholes Reforms
In Australia, the classification of workers operating on digital marketplaces (Menulog, Uber, Airtasker) and temporary recruitment agencies was substantially reworked by the Fair Work Legislation Amendment (Closing Loopholes) Acts of 2023 and 2024, culminating in the Closing Loopholes No. 2 Act 2024, which came into effect on 26 August 2024.
"Employee-like workers" regulation (new Chapter 3A, Fair Work Act): grants the Fair Work Commission (FWC) statutory powers to issue Minimum Standards Orders covering pay rates, superannuation, and working conditions for digital platform workers who meet the "employee-like" test — defined under section 15P(1)(e) as satisfying at least two of four criteria: low bargaining power, remuneration at or below award-equivalent rates, low authority over how the work is performed, or another prescribed characteristic.
Protection against unfair deactivation: this right sits within the same Chapter 3A framework (relevant provisions span sections 536J–536KQ and related sections of the Act — not a single standalone section number). Regulated gig workers below the high-income threshold can apply directly to the FWC to challenge an unfair or arbitrary account deactivation.
Sham contracting prohibition (Section 357): makes it illegal for a business to misrepresent a genuine employment relationship as independent contracting specifically to avoid Modern Award entitlements.
The First Successful Case: Hotak v Rasier Pacific Pty Ltd
This protection isn't theoretical — it's already been tested and won. In Mohammad Shareef Hotak v Rasier Pacific Pty Ltd (UDE2025/53), an Uber driver became the first employee-like worker to successfully secure compensation for unfair deactivation under the Closing Loopholes No. 2 provisions. The case confirms the framework has real teeth, not just a statutory right that exists on paper without enforcement.
The practical deadline that matters most: employee-like workers have only 21 days to lodge an application with the FWC challenging a deactivation — the same tight timeframe that applies to traditional unfair dismissal claims. This is a genuinely short window, and acting quickly after a deactivation is essential to preserving the claim at all.
State-Based Labor-Hire Licensing
Separately from the federal gig-worker framework, temporary recruitment agencies and labor intermediaries supplying workers to host businesses must comply with mandatory state labor-hire licensing regimes, operative in Queensland (Labour Hire Licensing Act 2017), Victoria (Labour Hire Licensing Act 2018), South Australia, and the ACT. These schemes require a "fit and proper person" test and full compliance with tax, superannuation, and occupational health and safety obligations.
Penalties for unlicensed supply are severe and vary by state, applying to both the labor provider and the host business that engages them:
- Queensland: up to approximately $666,750 AUD for corporations.
- Victoria: up to 3,200 penalty units for corporations — approximately $651,000–$660,000 AUD depending on the current penalty unit value, and roughly $160,000 AUD for an individual or executive officer.
- South Australia: up to approximately $400,000 AUD for a body corporate.
- ACT: penalties can exceed $2 million AUD in the most serious cases.
These figures are periodically indexed, so always check the current penalty unit value for the relevant state before relying on an exact figure.
What This Means for You
If you're an employee-like gig worker and your account is deactivated, treat the 21-day window as an absolute deadline — the Hotak case shows this route genuinely works, but only if you act within it. If you're being supplied to a host business by a labor-hire agency, you can check that agency's licence status on your state's public register before assuming your engagement is properly compliant.
Use our Gig Worker Earnings Checklist to assess your working arrangement, and if you suspect sham contracting, our Before Signing a Contractor Agreement Checklist covers the classification indicators directly.
Related Kibbo Tools
- Gig Worker Earnings Checklist →
- Before Signing a Contractor Agreement Checklist →
- Gig Economy Resources (Directory) →
Sources
- Fair Work Ombudsman — Employee-like workers, official guidance and statutory section references. fairwork.gov.au
- Fair Work Commission — Regulated workers and businesses hub. fwc.gov.au
- Victorian Labour Hire Authority — official regulator. labourhireauthority.vic.gov.au