Workers just got the right to ignore the boss out of hours

To applause in the Senate chamber and public gallery, the Greens, independent ACT senator David Pocock, and independent senator Lidia Thorpe backed Labor over the government's Closing Loopholes No.2 bill.

The legislation, which has been criticised by large and small business groups, covers a Greens amendment for the "right to disconnect" from work without fear of reprisal, casual work conversion to permanent work, minimum pay and conditions for gig economy workers like delivery drivers, minimum pay and conditions for truck owner-drivers and workers, and an improved definition of individual contract work.

Workplace Relations Minister Tony Burke said the new laws would make a difference for vulnerable workers.

"Today is a good day for casuals, a good day for gig workers, a good day for truck drivers and people in road transport, and a good day for those workers who want to be able to know that when they're on their weekend and not being paid, they can enjoy their weekend," Mr Tony Burke told Parliament.

"It makes a palpable difference for workers who have had no minimum standards, that they now will have some.

"And for casuals, your rent isn't casual, your mortgage isn't casual, your bills aren't casual, and if your hours are completely reliable, now casuals will have a pathway to permanent work."

The federal opposition, One Nation and Tasmanian senator Jacqui Lambie accused Labor of "ramming" through what they said were complex reforms. Liberal senator Michaelia Cash warned the move would leave small businesses in red tape and complexity. The Australian Chamber of Commerce and Industry called the right to disconnect a "thought bubble" from the Greens that future parliaments would have to deal with.

Unions, particularly transport organisations, have welcomed the passed reforms as safer, fairer standards that will save lives and quell the threat of exploitative gig competition, while small business groups are concerned they can't keep up with the new right to disconnect rules

Labor has confirmed the right to disconnect applies to the public service, but it would not apply to staff paid additional allowances to be on-call.

Greens senator Barbara Pocock said the right to refuse to be contacted outside working hours was a "basic enforceable right" and a "desperately needed protection".

She said the key was where the employer's contact and demands were "unreasonable", a distinction that will be made by the Fair Work Commission.

"That is a critical phase. What is reasonable here? What is unreasonable? Where you're not being paid to be available. Where the contact is repetitive and intrusive. Where you've got significant family responsibilities," she said.

"Then there are very significant boundaries that should be set so that the contact that's made is truly in an event of an emergency. It really does relate to a key task that must be dealt with immediately."

Senator Lambie, who voted against the bill but had secured some amendments, raised the new right to disconnect and "what's fair?" when it applied to the public service and political advisers.

Labor frontbencher Murray Watt confirmed it applied to the public service, but reminded there were extra allowances for staff regularly required to work outside of normal working hours.

"I would expect that the Fair Work Commission will take into account the fact that people in this line of work are paid additional allowances in recognition of their unusual hours and that it would be therefore difficult for such an employee to say that they cannot be connected in those unusual hours," he offered.

With the deals done and the Coalition powerless to change the legislation further, Senator Cash described closing loopholes as "possibly the most confusing, complex industrial relations to ever come before this Parliament".

"If you thought as a business in Australia you were drowning under a deluge of red tape, the bad news is it is about to get worse thanks to Prime Minister Albanese. That is his happy new year to businesses across Australia," Senator Cash said.

But Senator Watt accused the Coalition of making "wild claims" about the workplace law changes bringing on the "end of the world".

"At some point, it might be wise for the Coalition to have a think about whether the exaggerations they make when they're debating workplace laws are even worth making," he said.

"Because every time it happens, it doesn't happen and your credibility get shredded."

The Labor frontbencher told the Senate it was important to modernise laws governing the workplace.

"The fact is, there are many enterprise bargaining agreements that have been entered into already between employers unions and employees that already made provisions for a right to disconnect," Senator Watt said.

"And you know what? Those companies are still operating. The world hasn't fallen apart. We haven't gone back to the dark ages."