Meaning of adverse action
(1) The following table sets out circumstances in which a person takes adverse action against another person. Meaning of adverse action Item Column 1 Adverse action is taken by ... Column 2 if ... 1 an employer against an employee the employer: (a) dismisses the employee; or (b) injures the employee in his or her employment; or (c) alters the position of the employee to the employee’s prejudice; or (d) discriminates between the employee and other employees of the employer. 2 a prospective employer against a prospective employee the prospective employer: (a) refuses to employ the prospective employee; or (b) discriminates against the prospective employee in the terms or conditions on which the prospective employer offers to employ the prospective employee. 3 a person (the principal) who has entered into a contract for services with an independent contractor against the independent contractor, or a person employed or engaged by the independent contractor the principal: (a) terminates the contract; or (b) injures the independent contractor in relation to the terms and conditions of the contract; or (c) alters the position of the independent contractor to the independent contractor’s prejudice; or (d) refuses to make use of, or agree to make use of, services offered by the independent contractor; or (e) refuses to supply, or agree to supply, goods or services to the independent contractor. 3A a digital labour platform operator that has entered into a contract with an employee‑like worker for use of, or access to, a digital labour platform against the employee‑like worker the digital labour platform operator: (a) terminates the contract; or (b) injures the employee‑like worker in relation to the terms and conditions of the contract; or (c) alters the position of the employee‑like worker to the employee‑like worker’s prejudice; or (d) refuses to make use of, or agree to make use of, services offered by the employee‑like worker; or (e) refuses to provide to the employee‑like worker use of or access to the digital labour platform. 4 a person (the principal) proposing to enter into a contract for services with an independent contractor against the independent contractor, or a person employed or engaged by the independent contractor the principal: (a) refuses to engage the independent contractor; or (b) discriminates against the independent contractor in the terms or conditions on which the principal offers to engage the independent contractor; or (c) refuses to make use of, or agree to make use of, services offered by the independent contractor; or (d) refuses to supply, or agree to supply, goods or services to the independent contractor. 4A a digital labour platform operator that proposes to enter into a contract with an employee‑like worker for use of, or access to, a digital labour platform against the employee‑like worker the digital labour platform operator: (a) refuses to agree to provide to the employee‑like worker use of, or access to, the digital labour platform; or (b) discriminates against the employee‑like worker in relation to the terms and conditions on which the digital labour platform operator agrees to provide to the employee‑like worker use of, or access to, the digital labour platform; or (c) refuses to make use of, or agree to make use of, services offered by the employee‑like worker. 5 an employee against his or her employer the employee: (a) ceases work in the service of the employer; or (b) takes industrial action against the employer. 6 an independent contractor against a person who has entered into a contract for services with the independent contractor the independent contractor: (a) ceases work under the contract; or (b) takes industrial action against the person. 6A an employee‑like worker against a digital labour platform operator that has entered into a contract with the employee‑like worker for use of, or access to, a digital labour platform the employee‑like worker takes industrial action against the digital labour platform operator. 7 an industrial association, or an officer or member of an industrial association, against a person the industrial association, or the officer or member of the industrial association: (a) organises or takes industrial action against the person; or (b) takes action that has the effect, directly or indirectly, of prejudicing the person in the person’s employment or prospective employment; or (c) if the person is an independent contractor—takes action that has the effect, directly or indirectly, of prejudicing the independent contractor in relation to a contract for services; or (d) if the person is a member of the association—imposes a penalty, forfeiture or disability of any kind on the member (other than in relation to money legally owed to the association by the member). 8 an industrial association, or an officer or member of an industrial association, against an employee‑like worker the industrial association, or the officer or member of the industrial association, takes action that has the effect, directly or indirectly, of prejudicing the employee‑like worker in relation to a contract for use of, or access to, a digital labour platform. (2) Adverse action includes: (a) threatening to take action covered by the table in subsection (1); and (b) organising such action. (3) Adverse action does not include action that is authorised by or under: (a) this Act or any other law of the Commonwealth; or (b) a law of a State or Territory prescribed by the regulations. (4) Without limiting subsection (3), adverse action does not include an employer standing down an employee who is: (a) engaged in protected industrial action; and (b) employed under a contract of employment that provides for the employer to stand down the employee in the circumstances.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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