Welcome Back to Another HR Alert: The Closing the Loopholes Bill

 

The government introduced the Closing Loopholes Bill on 4 September 2023; the Bill aims to close pay and working conditions loopholes. It suggests tougher penalties, including imprisonment, for intentional underpayments. If the legislation passes, gig workers could gain enhanced protections and rights.

If the proposals pass it is likely that the majority of changes will come into effect mid to late 2024.

 

NOTABLE PROPOSED CHANGES:

 

• Jail Time for Wage Theft: Employers intentionally underpaying could face up to 10 years in jail or million-dollar fines, with exceptions for “honest mistakes” and support for self-reporting.
• Gig Workers and Labor Hire: The new bill defines an official employee, with the Fair Work Commission (FWC) considering factors like bargaining power, control, and pay levels. If these favour employee status, workers may gain workplace rights.
• FWC Minimum Standards: Starting in November 2024, the FWC gains new powers to set minimum standards, including pay, penalty rates, superannuation, record-keeping, and insurance for gig workers and labour-hire.
• Labour Hire Workers: Some employers (excluding small businesses) can no longer use labour-hire workers to undercut enterprise agreement wages.
• Enhanced legal protection for contractors: The Bill aims to introduce a no-cost threshold in the FWC, making it more affordable for contractors to enforce their rights.
• Permanent pathways for casuals: The proposed changes require employers to offer a path to permanent employment within the first 6 months (instead of the current 12 months), with small businesses having a 12-month service period before offering voluntary conversion pathways.
• Criminalising Industrial Manslaughter: Under Commonwealth work health and safety laws, individuals could face 25 years in jail, and body corporates could be fined up to $18M for gross negligence contributing to a worker’s death.
  • These changes could come into effect from 1 July 2024.

 

TAKE ACTION AND STAY INFORMED:

 

Your understanding of these developments is vital for both you and your organisation, and here is what you can do:

• Stay Tuned: Keep a watchful eye on our upcoming HR Alerts. We’ll continue to provide in-depth insights into the evolving HR and workplace landscape.
• Ask Our Experts: If you have questions or concerns about how these changes may impact your organisation, our team of experts is here to assist you. Reach out to us for guidance and clarity.