The Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 was introduced on Monday 4 September 2023 and proposes several measures, including:

• Wage theft: Deliberate underpayment of wages will be a criminal offence with maximum penalties of 10 years’ prison and fines of up to $7.8 million. Employers who unintentionally underpay will not be prosecuted and pathways will be available for those who self-report and take reasonable steps to repay the correct amount. The proposed federal laws will not override the existing State wage theft laws which can also lead to imprisonment and significant fines.
• Labour hire same job same pay: For businesses with an enterprise agreement (EA), any labour hire employees will be required to be paid the same as those under the EA. Exemptions apply for small businesses, GTOs, and short-term placements.
• Gig economy: The Fair Work Commission (FWC) will be able to set minimum standards in the gig economy, including for pay, penalty rates, payment terms, record-keeping, insurance as well as make orders requiring deactivated or suspended workers to be reactivated
• Casual employment conversion: Casual employees will be able to request to convert to more permanent employment after six months (or 12 months for small businesses)
• Unfair contracts: The FWC will gain jurisdiction to hear contractors’ disputes about unfair contract terms
• Road transport: The FWC will gain jurisdiction to set minimum standards in the road transport industry
• Union delegate right of entry: The FWC will have greater power to permit right of entry to investigate suspected underpayment
• Family violence discrimination: Employees will not be able to be discriminated against based on experiencing family or domestic violence
• Industrial manslaughter: Industrial manslaughter will be criminalised federally, with individuals facing imprisonment for up to 25 years and body corporates fines of up to $18 million.

The Victorian Chamber of Commerce and Industry is wholly opposed to the proposed Federal Industrial Relations legislation.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra said:

“The legislation is complex and will make it harder for businesses to employ people.

Whether you are in the labour hire industry, employ casuals, or supply your services on a gig platform, the complexity increases.

“This is not good for profitability or employment.

“This does not lead to higher wages, or more secure jobs.

“The Federal Government has not made the case for change and the Senate should reject it.

“We urge the Senate to hold a full inquiry, to come to Victoria and talk to the Chamber and Victorian business owners.

“While there are concessions for small businesses, we need fairness across large and medium business also.”

How the Victorian Chamber can help

Following the proposals, the Victorian Chamber’s Workplace Relations and Wellbeing Consulting team will hold a 45-minute webinar briefing at 9am on Friday 15 September 2023. The webinar will help businesses understand the Bill, what it may mean for your operations and the major milestones ahead.

More information and registration is available via the IR UPDATE: Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 introduced to Federal Parliament event page.