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Australia’s Senate passes key parts of its Closing Loopholes Bill including labour hire reforms

11 December 2023

Key parts of Australia’s Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 passed the Senate on 7 December 2023.

Australia’s labour government announced the reforms earlier this year. The reforms include the ‘same job, same pay’ rules to crack down on the use of labour-hire firms, pushing for more protection for gig-economy workers, and criminalising wage theft.

Among the key parts of the Bill that passed on 7 December include closing the labour hire loophole, which will mean better pay for labour hire workers; and criminalising wage theft, which will increase the civil penalties for wage theft and criminalise intentional wage theft. Superannuation theft will also be included in this legislation.

The Guardian reports that although the deal is likely to create a fierce employer campaign against the same-job, same-pay provisions, splitting the bill will mean that reforms to the gig economy, road transport industry and casual work will have to wait until 2024.

Further key parts that were passed include stronger rights for workplace delegates, the introduction of better support for first responders diagnosed with PTSD, the strengthening of protections against discrimination for employees subjected to family and domestic violence. It also will include silica-related diseases and safety within the Asbestos Safety and Eradication Agency and the reforms will criminalise industrial manslaughter.

Under changes negotiated with Senators David Pocock and Jacqui Lambie the government will reverse the onus of proof for first responders with post-traumatic stress disorder to improve access to work health and safety supports, including for members of the Australian Border Force. It will also enact new guidelines on independent medical assessments for workers; and initiate a comprehensive independent review of Comcare, the national work health and safety, and workers' compensation authority. The government has also agreed with Lambie to boost funding for the small business advisory service within the Fair Work ombudsman.

Pocock said there was ‘consensus over some’ of the remaining elements, including the gig economy and casuals, which he labelled ‘incredibly important’ but details would have to be resolved in the new year.

In the Senate, the shadow workplace relations minister, Michaelia Cash, complained that the government had cut a deal before the bill could be properly scrutinised by an inquiry, which will report back in February 2024.

Meanwhile, the Greens, which had won criminalisation of super theft in the first tranche of the bill, announced they will approve the deal but continue to fight for a right to disconnect from work by not answering phone calls and emails out of hours when the second bill comes to parliament.

ACTU Secretary Sally McManus commented, “This is a welcome Christmas present for working people thanks to the Albanese’s Government, the cross bench, David Pocock, the Jaqui Lambie Network, Lidia Thorpe and the Greens.”

“The Australian public understand that this legislation delivers better rights for workers which deliver better wages during the cost-of-living crisis,” McManus said. “These changes will make work a safer place to be, as well as give workers a pay boost at a time where they really need it.”

“The companies that will be crying loudest about these changes are some of Australia’s biggest and most profitable,” McManus continued. She added that mining companies such as Gina Rinehart’s or Qantas can well afford these changes, “but they fought against them as they don’t want to see their mega profits take the smallest of hits”, adding, “A small hit for them, a massive difference for working Australians.”

McManus said, “The fight isn’t over however, the rest of the bill must pass in the new year, we won’t leave truckies, casual workers and gig workers behind. The job is unfinished until that happens”.