CNA – The Australian labour government is set to unveil new legislation to address perceived gaps in workplace regulations. The move triggered opposition from employer associations, who expressed concerns about potential increased financial burdens.
The developments are expected to unfold as the Parliament reconvenes today.
Workplace Minister Tony Burke announced yesterday his intention to introduce a bill that would transform the deliberate underpayment of workers into a criminal offence. The proposal carries penalties, including a maximum prison term of 10 years and a hefty fine of up to AUD7.8 million(USD5 million).
In a statement, Burke clarified that the penalties would not be applied in cases of employers making genuine, unintentional errors.
Details of the legislation have not been released. Burke said in a speech last week that in addition to criminalising “wage theft”, the bill would make it easier for casual workers to gain permanent roles, scrutinise the use of labour hire firms to undercut minimum pay rates, and introduce minimum standards for “gig economy” workers, including in food delivery and rideshare apps.
He said yesterday in an interview with the Australian Broadcasting Corporation the impact on business would be minimal, although “there are some people who will have to pay more”.
Businesses with fewer than 15 employees would be exempt from some provisions, he said in a statement.
Business Council of Australia Chief Executive Jennifer Westacott called proposed changes “unworkable” on Friday, telling Sky News, “It’s going to add to cost, add to complexity, make it harder to get casual work, make it harder to employ people”.
The Australian Chamber of Commerce and Industry has said the law will restrict independent contracting and threaten the viability of online food delivery and rideshare services.
