Closing labour hire loopholes (Same Job, Same Pay)

Date opened
Date closed

View the Closing labour hire loopholes consultation paper

Issues

  • The Australian Government is committed to getting wages moving and strengthening enterprise bargaining.

Considerations

  • The Department of Employment and Workplace Relations is considering how to implement the Same Job, Same Pay measure with the following principles in mind:
    • business should be able to access labour hire for genuine work surges and short-term needs
    • labour hire workers should be paid at least the same as directly engaged employees doing the same work
    • disputes should be dealt with quickly, economically, and fairly in the Fair Work Commission
    • targeted anti-avoidance measures are needed to protect Same Job, Same Pay entitlements and ensure long lasting behavioural change.

Key questions

Stakeholders are invited to comment on the Same Job, Same Pay measure, including in response to the following questions:

  • The Same Job, Same Pay measure is intended to apply to labour hire arrangements.
    1. How should different labour hire arrangements be identified or defined?
    2. Should any arrangements be excluded from the scope of the measure? If so, why?
  • How should a ‘same job’ be identified? For example, is a labour hire worker doing the ‘same job’ as a directly engaged employee if the labour hire worker is:
    1. performing duties that attach to a classification in a host employer’s enterprise agreement; and/or
    2. performing the same duties as a directly employed employee; and/or
    3. performing the same duties as an employee covered by the modern award; and/or
    4. meeting any other potential criteria?
  • How should ‘same pay’ be calculated? The Department is considering calculating ‘same pay’ in accordance with the term ‘full rate of pay’ in the Fair Work Act 2009.
    1. Is calculating ‘same pay’ with reference to ‘full rate of pay’ appropriate?
    2. Should ‘same pay’ extend to conditions that fall outside this definition? If so, what conditions should be captured and why?
  • How should the Fair Work Commission resolve Same Job, Same Pay disputes?
  • What could be done to prevent parties avoiding Same Job, Same Pay obligations?
  • What could be done to avoid discouraging parties from enterprise bargaining in light of Same Job, Same Pay obligations and entitlements?