Businesses express alarm over 'radical new restriction'
In its latest set of workplace reforms, the Australian government will be introducing a new pathway for casual workers so they can become permanent employees, a measure that employers are calling a "radical new restriction."
Employment Minister Tony Burke said the upcoming legislation will provide a new definition of casual work to close a "loophole" that leaves some workers stuck as casuals despite working permanent regular hours.
"They're being used as though they're permanent workers and the employer is double dipping - taking all the advantages of a reliable workforce and not providing any of the job security in return. That loophole needs to close," Burke said in a media release.
Australia has roughly 2.5 million casuals, according to the minister, with more than 850,000 of them with regular work arrangements.
"Some of those 850,000 workers are in situations where they would rather have a level of security than have the casual loading," he told reporters.
According to the minister, moving these casuals to permanent roles will grant them leave entitlements as well as financial security.
The legislation, however, will not affect casuals who prefer to keep their flexibility and would rather not convert to permanent staff, the minister stressed.
"No casual will be forced to lose their loading. No casual will be forced to become a permanent employee," Burke said. "But for those who desperately want security - and are being rostered as though they were permanent - for the first time, job security will be in sight."
Employers' organisation Australian Industry (Ai) Group commented that the government's proposed changes to casual work raised more questions than answers.
"Employers will be understandably alarmed at the prospect of a radical new restriction on the ability to engage casual employees to work regular and predictable hours," said Ai Group chief executive Innes Willox in a media release.
According to Willox, many casuals enjoy the predictability of their hours, as well as the ability to not work if they have another commitment. They also already have the ability to request for permanency under the Fair Work Act.
"Defining casual employment in a way that prevents or discourages an employer from offering a casual regular and predictable hours would be a mistake that would damage the economy and hurt both businesses and employees," the Ai Group chief executive said.
"It won't help anyone if an employer is forced to convert a casual employee to a permanent job if one doesn't genuinely exist. The real risk is that employees will be laid off down the track."
Burke acknowledged that businesses would prefer the current definition of casual work under the Fair Work Act, which was also confirmed by the High Court in 2021
"I want to go back to what the definition always was before, a couple of years ago, and that's a practical definition where effectively you ask what's really going on," Burke said.
He added that he doesn't see the measure racking up costs for businesses. Instead, it will boost an organisation's retention.
"Under this process, by giving people secure jobs, you get a more loyal workforce, you get a workforce that appreciates the security that's been given to them and that can only be good for business and productivity," he said.
The upcoming legislation is expected to be introduced in Parliament later this year, according to the minister.
"There's still consultation happening. Certainly, when Parliament returns for the next couple of weeks, it won't be ready then, but I'm hoping it'll be ready pretty soon after that," Burke said.
