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Australia – Federal government’s labour reforms to give casual workers option for permanency

08 December 2020

Australia’s federal government is introducing new workplace reforms under its industrial relations law. Among these reforms includes a new statutory definition of casual employment.

According to ABC News, the new changes will define a casual employee as someone offered work without "firm, advance commitment" of ongoing opportunities, with a worker's ability to reject work and receive a casual loading also relevant.

Businesses would be obliged to offer casual workers with a regular pattern of hours a permanent part-time or full-time job after 12 months, unless they have reasonable grounds not to.

According to the Sydney Morning Herald, if an employee declines an initial offer to convert from casual to permanent work, a further right to request will be available every six months, as long as they remain eligible.

The legislation will also seek to address the landmark Rossato legal case earlier this year that found casual workers could be entitled to sick leave and other benefits, even if they have been paid a casual leave loading.  The government is concerned that earlier rulings by the Federal Court could financially cripple many businesses.

The legislation would allow casual leave loadings or special pay rates to count towards any entitlements a casual employee may be found to have.

Industrial Relations Minister Christian Porter said, “The solution we will introduce to the double-dipping problem created by the Rossato decision will give business the confidence and certainty they need to invest, grow and start hiring again, knowing that they will not have to pay people twice for things like sick leave and loadings always meant to compensate casual workers for those things.”

Porter added, “Our definition of casual employment is likely broader than some business groups had wanted, unions are likely to say we should have made the definition broader still, suggesting to me that we have struck the right balance on this issue and delivered a fair and equitable outcome that will benefit both workers and employers.”

Australian Council of Trade Unions Secretary Sally McManus said the proposal would ‘entrench casual work’.

“The proposal makes it almost impossible for casual workers to convert to permanent work as if an employer is unreasonable or does not offer them permanent employment, there is little they can do about it," McManus said.

"Even though we know so many casual workers are not paid more than permanent workers, it also retrospectively takes away rights they would have to paid leave. Casual workers who are incorrectly classified by their employers currently have this right, this legislation would take it away,” McManus said. “This is a huge missed opportunity to begin to make jobs more secure and turn around the number of causal and insecure jobs."

Porter will introduce an omnibus bill to Federal Parliament this week which will also include a more flexible interpretation of the Better Off Overall Test by the Fair Work Commission, award simplification for employers to pay loaded rates and criminal charges for employers who egregiously, recklessly and knowingly underpay workers.

According to Porter, there will likely be more consultation on the bill before it was passed.