Industry alarm over casual worker entitlements
The Australian Hotels Association (AHA) and Tourism Accommodation Australia (TAA) have slammed the outcome of a recent Federal Court decision which ruled that a casual worker was entitled to receive annual leave entitlements, despite being paid a casual loading.
AHA CEO Stephen Ferguson and TAA chair Martin Ferguson argue casual workers already receive a significant pay loading in return for not receiving permanent employment benefits such as annual leave.
“An employee should not be unjustly better off by receiving the benefits of both casual employment loadings and full-time or part-time employment entitlements,” said Stephen Ferguson.
“The AHA supports the principle all employees should be properly categorised as to the basis of their employment, whether it be full-time, part-time or casual – and paid accordingly.
“If an employee is engaged and paid as casual and receives a casual loading as part of that arrangement, it is only fair that casual loading payment be offset against any other entitlements that a court determines should be paid, if that arrangement is later determined to be something other than casual.”
Martin Ferguson said it has been a long-standing principle that the payment of a casual loading “is in lieu of accumulated entitlements such as annual leave, sick leave and public holidays”.
Restaurant & Catering Australia CEO Juliana Payne stressed the urgency of providing small businesses with certainty around the arrangements of casual workers.
“The precedent created in the WorkPac vs Skene case allowing casual workers to potentially receive both a loading and annual leave entitlements has caused considerable angst and alarm amongst café and restaurant-owners who rely heavily on casual workers to run their businesses sustainably and successfully,” she said.
“The inherent seasonality and unpredictable trade of the hospitality industry throughout the year means that the owners of café, restaurant and catering businesses will always require access to casual workers to some degree.
“However, the confusion and uncertainty created by the WorkPac vs Skene case has led to a situation whereby business owners may be unwilling to engage casual workers because of the potential liabilities arising from this case.
“We therefore strongly welcome today’s announcement from Minister O’Dwyer regarding the Commonwealth Government’s intervention to provide business-owners with certainty and clarity over entitlements for casual workers.”
Sheridan Randall, 23rd October 2018
