Minister confirms major review of workplace laws
The definition of a casual worker could be set to change following the announcement of a major review into Australian workplace laws.
Also under the spotlight, current unfair dismissal laws, and how the Fair Work Commission deals with claims from disgruntled employees.
The announcement was made by Attorney-General and new Industrial Relations Minister Christian Porter (pictured above), who argues that widespread confusion about workplace definitions has to end.
Review first overhaul since Work Choices
Prime Minister Scott Morrison told business leaders in Perth recently that the government planned to take a “fresh look” at industrial relations in Australia, to be led by Porter.
The review marks the first workplace relations overhaul since John Howard’s unpopular and ultimately politically poisonous “Work Choices” program more than a decade ago.
Porter said the aim of the review, which is expected to take six to nine months, will be to remove the “confusion and frustration” around how casual work is defined.
Review comes after Rio Tinto case
The announcement comes in the wake of the Federal Court’s controversial ruling that former Rio Tinto truck driver Paul Skene, who was hired through a labour hire company as a contractor, was actually a permanent employee, and was entitled to annual leave and other entitlements of a permanent employee.
The court decided the driver was working a regular and systematic roster and had the expectation of on-going work, and was a casual employee in name only.
Former Rio Tinto truck driver Paul Skene was found by the Federal Court to be a permanent employee.
Business group described decision as a ‘kick in the guts’
Business lobby group the Australian Industry Group described the court’s finding as a “kick in the guts” – and called for the legal definition of a casual worker to be clarified to match employers’ definitions, rather than workplace practices.
As the court noted in the Rio Tinto v Skene case, there is no definition of a casual employee in the Fair Work Act.
“Everyone benefits from having clarity in the system,” Mr Porter told the Sydney Morning Herald.
The review will also consider the Small Business Fair Dismissal Code, with Porter telling The Australian that the Fair Work Commission’s current way of processing unfair dismissal claims was “ripe for improvement”.
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‘No mandate for change’
Australian Council of Trade Unions secretary Sally McManus told Yahoo Finance that the Coalition did not go to the May election with a mandate for industrial relations change.
“Courts have upheld that casual work is short-term, intermittent and irregular,” she said.
“The Morrison Government is seeking to destroy these protections which would allow employers to simply call a job “casual”, even if it is regular and on-going.
“This will have widespread ramifications for all permanent jobs as employers will be able to convert them to “casual” removing guaranteed hours, rights and job security protections.”
McManus also argued that employers want Porter to weaken unfair dismissal laws, which would in turn make it easier for employers to “arbitrarily sack people”.
“We already have too many insecure jobs, this will make the problem much worse.”
A definition of a casual worker ‘would be helpful’
Miles Heffernan, Litigation Director at Employwise, said employers would benefit from a clarification in the law.
“Certainly it would be helpful for employers and employees if the meaning of a casual worker is defined by the law,” he said.
“But if someone is working a regular and systematic roster and has an expectation of on-going work, then it’s probably a bit cheeky for an employer to classify that worker as a casual to avoid paying leave and other entitlements.
“Mr Porter will have to tread carefully with this review, because the last time the Coalition government took to the industrial relations system, they were booted out of office.
“Australians have an inherent sense of fairness when it comes to work, and if the pendulum swings too far in favour of employers, they will have something to say about it at the ballot box.”
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