House debates

Tuesday, 28 November 2023

Bills

Fair Work Legislation Amendment (Closing Loopholes) Bill 2023; Consideration in Detail

5:55 pm

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | Hansard source

Much of the content of the amendments that are before the House now has been made public as it's been developed and negotiated, particularly with some key business groups. It was stated earlier that the amendments have been in the House since 1.30. They've been in the House since midday but were moved just before 1.30, when 90-second statements commenced. We've continued to consult following introduction of the bill, as we did with workplace relations legislation last year, and many of the amendments arise from that consultation. I'll deal with them in groups.

The first are the amendments to casual employment. These are the amendments that were negotiated with the Australian Hotels Association and publicly welcomed by the Pharmacy Guild. The government's welcomed stakeholder feedback where there were genuine and practical amendments to help clarify the intent of the reforms, and I want to commend the positive engagement from business groups—in particular the Australian Hotels Association. We've listened, and these amendments further clarify that a person who works a regular pattern of work can still meet the definition of a casual employee. We're providing additional certainty for businesses and for workers who prefer regular casual employment, and we're also allaying any concern about civil penalties from mistaken misclassification.

We're also repealing the existing residual right to request casual conversion in the Fair Work Act. This amendment clarifies that eligible casual employees who wish to change to permanent employment can do so through the new employee choice pathway. This will ensure arrangements are clear and simple for business, particularly small business. These amendments also should once and for all end the claim that this bill could in any way force somebody who did not want to convert from casual to permanent to do so. It is a voluntary system that is put in place, and these amendments make that plain.

On closing the labour hire loophole, one of the key arguments made by business groups was that there was concern about whether or not the legislation had unintentionally caught service contractors. The provisions were never intended to apply to service contracting, as is reflected in the explanatory memorandum to the closing loopholes bill. I want to acknowledge the engagement with the Australian Resources and Energy Employer Association, AREEA, and Professor Andrew Stewart, who had raised concerns and called for an amendment of this form. However, to make this even clearer than it was in the explanatory memorandum, the government amendment ensures the Fair Work Commission cannot make an order where work performed for a host is the provision of a service rather than the supply of labour. These amendments expressly provide that the Fair Work Commission must not make an order unless it is satisfied that the work is not for the provision of a service rather than supply of labour; delete the words 'wholly or principally' from the multifactor test, providing further certainty on how the multifactor test will operate; and clarify the termination entitlements for a labour hire employee covered by a regulated labour hire arrangement order. The amendment is a commonsense way of cutting red tape for business and simplifies leave entitlements while still preserving the government's policy intention.

Further amendments safeguard the operation of regulated labour hire arrangement orders from avoidance behaviour once they are made; ensure the continued operation of regulated labour hire arrangement orders where there's a change in commercial arrangements for the supply of labour or where a host business makes a new enterprise agreement; and ensure orders are effective and are able to capture all the relevant parties in complex labour hire arrangements, including for arrangements as part of a joint venture or common enterprise.

As the clock winds down, I should make clear that I will, as is provided in the resolution, be making sure that the time for this goes beyond the 20 minutes allocated.

We've listened on employee-like reforms, we've listened to platforms, and we appreciate the valuable consultations with organisations such as Uber, Menulog and DoorDash. These amendments ensure the Fair Work Commission sets minimum standards in a way that is fit for purpose for the unique nature of digital platform work. The amendments clarify the minimum standards objective, including—and I might just seek the call again—

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