Australian gig workers are set to benefit from a suite of proposed new laws that set minimum workplace standards.
The proposed changes are part of the Federal Government’s Closing Loopholes Bill, which will be introduced into Parliament next week.
“We know there is a direct link between low rate of pay and safety: it leads to a situation where workers take risks so they can get more work because they’re struggling to make ends meet,” said workplace relations minister, Tony Burke.
“We can’t continue to have a situation where the 21st century technology of the gig platforms comes with 19th century conditions.
“At the moment if you’re classed as an employee, you have a whole lot of rights such as sick leave, annual leave, and minimum rates of pay. If not, all those rights fall off a cliff. What we want to do is turn the cliff into a ramp.
“We’re not trying to turn people into employees when they don’t want to be employees. A whole lot of gig workers like the flexibility from using this technology and that won’t change under our laws.
“But just because someone is working in the gig economy shouldn’t mean that they end up being paid less than they would if they’d been an employee.”
Under the legislation the Fair Work Commission will be empowered to set minimum standards for employee-like workers in the gig economy.
Employee-like workers will be those who perform work through a digital labour platform – such as in food delivery, ride share, and the care economy.
Eligible parties will be able to apply to the Fair Work Commission for minimum standards orders that are tailored for the work performed under them.
The Fair Work Commission will have discretion to consider a range of terms that may be included in an order, such as payment terms, working time, record-keeping, and insurance.
The Commission will not set minimum standards on terms such as overtime rates, rostering arrangements and terms that would change how a worker is engaged.
Employee-like workers will also be protected from unfair deactivation by digital labour platforms and will have the right to ask the Fair Work Commission to resolve disputes.
“Our changes will in no way affect independent contractors who have a high degree of control and autonomy over their work, such as skilled tradespeople,” said Burke.
“This is about protecting workers who don’t meet the definition of ‘employee’ but who are not genuine small businesses either.”
Burke said the introduction of this legislation follows extensive consultation – with more than 100 meetings with digital labour platforms, employer groups and unions since August last year.
Small Business rejects proposed IR changes
The Council of Small Business Organisations Australia (COSBOA) has voiced it concerns about the proposed IR changes, calling on Parliament to oppose the reforms.
“The small business community rejects the intrusion of so much more complex regulation into the ability to be productive and flexible, let alone just getting on with being in business and employing more people,” the organisation said.
“Contractors who run their own business, providing services to many customers, or are contracted for a term of a project will no longer be able to be their own boss. These changes force an ’employee-like’ relationship on everyone.”
Commenting on proposed legislation to criminalise wage theft, COSBOA said wage underpayments and overpayments are a consequence of a complex award and employee classification system.
“Wage theft: where it is intentional, deliberate, and repeated should not be tolerated. An appropriate regime should be implemented to provide the FWO with the necessary tools to detect and prosecute such actions,” COSBOA stated.
“When government departments and regulators can get it wrong, despite their teams of payroll and IR specialists, why should business be prosecuted for unintended mistakes.
“Small business fear that these changes won’t close loopholes. No longer will an entrepreneur be encouraged to start and grow a business.”
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at info@incleanmag.com.au
Sign up to INCLEAN’s newsletter.
