House debates

Wednesday, 17 February 2021

Bills

Fair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Bill 2020; Second Reading

12:46 pm

Photo of Lucy WicksLucy Wicks (Robertson, Liberal Party) Share this | Hansard source

I rise to speak in support of the Morrison government's Fair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Bill 2020. This bill will provide greater flexibility for employers seeking to retain and bring on new staff during COVID-19. It will mean businesses, especially small and medium-sized businesses, can keep their doors open and give opportunities for existing employees to take on more hours. This bill will also provide greater certainty to employees by clearly defining what a casual employee is. It will also introduce a statutory pathway through which casual employees can become permanent part-time or full-time employees, giving them the opportunity to make their relationship with their employer permanent.

I'm supporting this bill for the opportunities and the jobs these reforms will open up for young people in my electorate of Robertson. I'm also supporting this bill because of its potential to increase productivity and to grow business on the Central Coast, especially for those small- and medium-sized businesses who have had to change the way they operate during COVID-19. By contrast, Labor is seeking to delay the introduction of these balanced and pragmatic reforms which are the result of the industrial relations reform working groups put together by the Attorney-General. These working groups included representatives from business groups and workers unions and more than 120 hours of formal discussions to seek to bring about changes to industrial relations that will help support Australia's economic recovery, improve job growth and improve workers' rights.

This bill contains five schedules covering five different subject matters dealt with by the industrial relations working groups. I'll be discussing three of these matters, including the definition of a casual employee in the Fair Work Act, the continuity of workplace flexibility measures for specific awards for a further two years, and new measures to improve compliance and enforcement of industrial relations policy.

The Morrison government recognises the need for greater certainty for businesses and stronger protections for casual employees, which is why we are introducing a definition of 'casual employees' in the Fair Work Act. This definition will make it clear from the outset whether a new employee is a casual or an ongoing employee of the business. It will also mean that employees will not have to depend on intermittent assessments of the relationship over time to know their rights and obligations. This definition of 'casual employment' will provide greater certainty for the more than 32,000 casual employees on the Central Coast and the more than 2.3 million casuals across Australia.

The bill will also provide eligible casual employees with a statutory mechanism to become permanent full-time or part-time employees if they wish. Employers will be required to offer to convert an employee from casual to permanent employment if they've worked casually for the employer for 12 months and have worked a regular pattern of hours on an ongoing basis for at least the last six months of that period. This will allow employees to be classified according to the work they perform and be paid related entitlements.

The bill will also look to address additional challenges and costs incurred by small businesses, including in my electorate of Robertson. There was a cafe in Avoca that I used to walk by every morning—a fantastic cafe with wonderful coffee and great food—and one morning last year, I received a text message from a constituent who was a regular at that cafe, and he informed me that the owner had let him know that she was going to have to close. De, a local business owner, operated this popular cafe called Sul Rondo in Avoca Beach. She said to me she was devastated when she had to close her cafe in September last year because she couldn't retain or attract staff to keep her business going. While De began the pandemic with 14 staff, she only had six employees working for her when she had to shut the cafe permanently. De's experience highlights just one of the many challenges that small business owners have faced and are facing during the COVID-19 pandemic. The government has introduced this bill to help support businesses, especially in the retail and the hospitality sectors.

Another issue addressed by this bill is the inflexible and complex employment award system. The system can be particularly challenging for small businesses to navigate. During the pandemic, the current system hasn't allowed for the flexibility that businesses and employees need to continue to operate. Part of the challenge faced by small business is the amount of time required to understand this award system. This is time that small-business owners could spend growing their business and creating new jobs, two things which I think all of us in this chamber should agree are key priorities for Australia's economic recovery. The Morrison government wants to support businesses and employees covered by awards with greater temporary flexibility to help them recover from COVID-19. Importantly, this flexibility will be given to industries hardest hit by the pandemic, such as the retail and the hospitality sectors. These flexibilities will allow employers covered by 12 industry awards to ask employees to undertake in-demand tasks or work from different locations. It will also mean that part-time employees in these industries can agree to work additional hours if they wish which helps to support those that are currently underemployed. This reform will provide greater opportunities for around 30 per cent of part-time employees in the retail industry and roughly 40 per cent of part-time employees in the accommodation and food services industry who wish to work more hours.

However, despite the industrial relations reform working groups holding 33 meetings, Labor refuses to support these temporary measures. By not supporting this bill, Labor is saying to people on the Central Coast that they don't support flexible working conditions for businesses and employees in distressed industries. The Morrison government is also improving compliance and enforcement of the Fair Work Act, protecting employees from wage theft and deterring non-compliant conduct from employers. These reforms include a new criminal offence for dishonest and systematic underpayments of one or more employees. We're also increasing the value and scope of civil penalties for non-complying employers. These measures provide significant and stronger protections for workers across Australia and allow employees to recover unpaid wages sooner. Unlike those opposite, the Morrison government also recognises the challenges that businesses face in complying with their obligations under the Fair Work Act. This is why, in addition to this bill, we are committing $12.9 million to establish an employer advisory service within the Fair Work Ombudsman. This service will assist employers in understanding their obligations by providing written advice specific to their situation. In speaking with local businesses in my electorate of Robertson, I know the introduction of this service will actually be quite welcomed and help provide them with greater clarity in understanding their obligations.

In closing, I'm really proud to be part of a government who is improving Australia's industrial relations framework for employees and employers alike. For around 16½ small and medium-sized businesses in my electorate of Robertson on the Central Coast, these measures will support them through Australia's economic recovery and help them to continue operating as the pandemic progresses. These reforms are important yet modest and address known issues within the Fair Work Act which are impeding job creation and wage growth. I commend the bill to the House.

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