The workplace relations minister, Tony Burke, has introduced a bill Labor says will close “loopholes” that undercut workers’ pay and conditions.
So what is in the latest industrial relations bill, and how will it work?
1. Same-job, same-pay in labour hire
The bill states that if an employer already has a collective pay deal in its workplace, then employees, unions or host companies can apply to the Fair Work Commission to ensure that temporary workers brought in from labour hire companies are paid the same rates.
There are strings attached: small businesses are exempt, as are labour hire engagements of less than three months, ensuring businesses can bring workers in for surge capacity. The changes take effect from November 2024.
Burke told the House of Representatives that FWC same-job, same-pay orders will only apply to pay and not non-monetary benefits. Rejecting a central premise of employers’ campaign against the changes, Burke said the reform “does not prevent [them] paying their employees more in recognition of their skills, qualifications and experience”.
According to regulatory impact statements accompanying the bill, the requirement to pay labour hire workers the same rates of pay as those who are directly employed on enterprise agreements could add $511m to businesses costs, transferred to workers in the form of higher pay.
2. Gig economy
The bill will allow parties to apply to the Fair Work Commission for orders for minimum standards in the gig economy, including on pay, penalty rates, superannuation, payment terms, record-keeping, insurance and deactivation.
Deactivation is the process of removing a gig economy worker from an app, ending their ability to earn income despite claims workers are “independent” of the platform.
The reforms are limited to digital platform workers who have low bargaining power, low authority over their work or receive pay at or below the rates of comparable employees. The workplace relations minister also has a power to make regulations to set other criteria that could bring platforms within scope.
A departmental analysis of the gig economy reforms, outlined by Burke at the National Press Club on Thursday, found the changes are “estimated to deliver $4bn in increased wages for workers over 10 years”, or $404m a year.
3. Wage theft
The bill makes it a criminal offence to deliberately underpay workers, with jail terms of up to 10 years and maximum fines of up to $7.8m – or three times the amount that was underpaid if that amount exceeds the maximum fine.
Businesses with 15 or fewer employees will be covered by a voluntary small business wage compliance code, guaranteeing they will not be referred for criminal prosecution if they take steps in the code to ensure workers are paid correctly.
The bill also increases maximum penalties for wage underpayment including reckless underpayment.
4. Right of entry
Currently, union officials can exercise a right of entry to workplaces to investigate potential breaches of the Fair Work Act with 24 hours’ notice or if the Fair Work Commission waives this requirement because of concerns about possible document destruction.
The bill expands the grounds to waive the 24 hours’ notice if the FWC is satisfied that the suspected contravention involves the underpayment of wages of a union member who works there.
Burke said the current safeguards will continue to apply, including requiring an application to access non-members’ records and the ban on accessing residential premises.
5. Bargaining changes
The bill makes numerous changes to bargaining, allowing:
The FWC to make enterprise agreement model terms
Franchisees to bargain together in a single stream
Employers with a multi-enterprise agreement to bargain with their employees for a replacement single enterprise agreement at any time
6. Casual rights
The bill makes it easier for casuals to convert to full-time work if they choose. Casuals who work full-time hours would be able to access leave entitlements and guaranteed hours if they change their employment status.
7. Road transport conditions
The bill empowers the Fair Work Commission to set minimum standards for the road transport industry, including the charge-out rates of independent contractor owner-drivers and therefore their rate of pay.
The bill contains safeguards including a requirement of genuine consultation with parties including the road transport advisory group, a notice of intention process to give parties time to consider draft minimum standards orders before they are binding.
The FWC will also have to consider commercial realities of the industry and the financial viability of owner drivers.
8. Unfair contracts
The FWC would also gain jurisdiction to hear independent contractors’ disputes about unfair contract terms.
While contractors rights are unchanged, those below a high-income threshold will be able to take disputes to the commission instead of a court.
9. Family violence discrimination
The bill bans discrimination against employees on the basis they have been subjected to family or domestic violence.
