By Oyintari Ben
When Parliament reconvenes on Monday, Australia’s Labour Government will submit legislation to address “loopholes” in employment law, a move opposed by employer groups concerned about increased expenses.
On Sunday, Workplace Minister Tony Burke announced that he would introduce a Bill making it illegal to purposefully underpay employees, punishable by up to 10 years in prison and an A$7.8 million ($5.0 million) fine.
According to Burke, employers who commit honest errors won’t be penalised.
The legislation’s specifics have not been made public. In a speech last week, Burke claimed that in addition to making “wage theft” illegal, the bill would also make it simpler for temporary employees to obtain permanent employment, examine how labour-hire companies undercut minimum wage rates, and establish minimum standards for “gig economy” workers, such as those employed by ride-sharing and food delivery services.
In an interview with the Australian Broadcasting Corporation on Sunday, he stated that while the impact on business will be small, “some people will have to pay more.” Some requirements would not apply to companies with fewer than 15 employees, he added in a statement.
Jennifer Westacott, CEO of the Business Council of Australia, described the proposed reforms as “unworkable” on Friday, telling Sky News that they would increase costs and complexity while making it more difficult to find casual employment and hire new employees.
According to the Australian Chamber of Commerce and Industry, the rule will limit independent contracting and jeopardise the sustainability of ride-sharing and online food delivery services.
