What are employee-like reforms?
On September 4, Minister for Industrial Relations, Tony Burke unveiled the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023. This new law (once passed) aims to make a lot of changes to the way workers are treated right across the economy.
One of these changes is to how ABN contract workers on a digital platform are treated, and the different rights and entitlements they should receive. These are known as the 'employee-like' reforms.
Basically, through these reforms, the big platforms are going to have to do more to protect their workers, and make sure they are earning a minimum wage and have access to typical ‘employee’ benefits such as superannuation.
These changes are good for workers. They mean platforms have to take more responsibility, and workers get better protections.
What does “employee-like” mean?
‘Employee-like’ is a new word the government is using to describe workers who use an ABN, but work in a way very similar to a traditional employee. It is a word that we didn’t used to need, but the rise of big technology platforms is blurring the lines between a ‘contractor’ and an ‘employee’, so the government is taking steps to clear it up.
This may include workers across many sectors in the economy- like drivers on Uber, delivery riders on Menulog, and disability support workers on Mable.
The new law will include a test to determine if that worker is ‘employee-like’. First, they must be using a platform to do their work. This law does not include contractors who work directly with their clients.
Additionally, to be considered an "employee-like worker," the worker should meet at least one of the following conditions:
- Have limited bargaining power
- Receive pay at or below the rate of an employee performing comparable tasks
- Have minimal authority over their work; or
- Any other characteristics the Fair Work Commission may decide are needed.
Setting a minimum standard
When the Fair Work Commission categorises a worker as "employee-like," they have the authority to enforce a range of minimum standards that the platform must abide by.
These standards cover a wide range of things, including:
- Insurance
- Penalty rates
- Superannuation
What does this mean for Hireup?
Hireup is not included in these laws. That is because all of our workers are already employees. Under existing laws, employees already have access to all the benefits that the Fair Work Commission may deliver, plus more.
What these laws will do is give ABN contract workers who perform their work in a similar way to employees (employee-like) entitlements that more closely resemble what an employed worker doing the same work already receive.
In Australia, employment is the best way to make sure a worker is treated fairly and is protected.
So, what comes next?
The Bill has been introduced, but before it becomes law, it must pass through Parliament. This will happen by around March 2024. During this time, politicians will have the opportunity to make changes to the law and ask the Minister any questions.
At the moment, once passed the employee-like laws are set to be in effect from July 2024.
Next: Employee-like Reforms and the Hireup Community
These proposed reforms will not impact Hireup or our community.
This is because our workers are already employees, and already enjoy many of the employment standards the government is seeking to extend to independent contractors on other platforms.