26 Sep 2024Recent changes to labour hire laws are designed to ensure labour hire workers get the same pay as the host company’s regular employees who are doing the same work.
Legislation to stop use of labour hire to undercut permanent employees
The changes are detailed in one of two pieces of Commonwealth legislation called Closing Loopholes, which are aimed at preventing big companies from using workers from labour hire firms to undercut their permanent employees.
The new law says if a labour hire worker is doing the same job as a permanent employee, they must be paid the same for the same work.
The Fair Work Legislation Amendment (Closing Loopholes) Act 2023 says companies which use labour hire workers, the company’s employees, unions and the labour hire workers themselves are all able to apply to the Fair Work Commission to make a “same work same pay” order.
There are exceptions, such as if the host company is a small business (one with fewer than 15 employees); if the labour hire workers are “providing a service rather than their labour”; or if it is not fair and reasonable in all the circumstances to do so.
Such applications can be complicated and need evidence. There could be disputes about the amount of overtime received, bonuses, allowances and hours of work. It would be wise to get legal advice from an experienced employment lawyer on how best to present your case to the FWC.
Other workplace laws to strengthen employee protection
The two Acts include many other changes to workplace laws, which come into operation at different times this year. (Please see Closing Loopholes, Department of Employment and Workplace Relations, 14 March 2024.)
The first Act, which came into operation in December 2023, protects workplace delegates and strengthens protection from discrimination in the workplace for employees being subjected to domestic violence. (Please see The Closing Loopholes Acts – what’s changing, Fair Work Commission.)
Among other changes made by these Acts are the definitions of “casual employee” and “employment”, allowing agreements over multi-enterprises, minimum standards in the gig economy and minimum standards in the road transport industry.
Workers now have the right to disconnect
In addition, since 26 August 2024, workers (except those in small businesses) have the right to disconnect. That is, they do not have to answer phone calls or messages from employers after work hours, unless such refusal is “unreasonable”.
The move is a response to growing concerns about work-related mental health problems, such as stress and overwork.
Workers will have to discuss their right to disconnect with their employers. The outcome will depend on the nature of the work, emergencies, compensation for working outside ordinary hours and the worker’s role in the organisation. (Please see What is the new right to disconnect?)
