New workplace changes could herald in harsh fines for businesses
Australia’s Federal government has introduced a new "part-time flexi" plan that will see part-timers in food and retail jobs forgo overtime payments when they take on extra hours.
This new plan allows part-timers in sectors such as food, retail and accommodation to work extra shifts, without overtime, at a threshold of 16 hours a week.
As part of the overhaul, the government will also criminalise wage theft and protect small businesses that receive inadequate employment advice.
Wage theft could lead to criminal penalties of up to four years in jail and $5.5 million fines.
Further possible changes include slashing the number of pay classifications in the awards, which can into the dozens and attempting to prevent accidental underpayment by confused employers.
Any changes are due by the end of march 2021, which now sets up an intense period of debate between government, unions and businesses around how high or low the new rates should be.
All will bear in mind the effect on potentially millions of workers’ pay and businesses’ profitability.
Under this new bill, harsher penalties will be in place for negligent underpayment and claims up to $50,000 will be handled by low level courts. Larger businesses proven to be underpaying their employees could be fined three times the amount of benefit gained from this act.
Irit Jackson, 9th December 2020
