The Times Australia
Business and Money
The Times Real Estate

.

Employers will resist, but the changes for casual workers are about accepting reality

  • Written by John Buchanan, Professor, Discipline of Business Information Systems, University of Sydney Business School, University of Sydney
Employers will resist, but the changes for casual workers are about accepting reality

The Albanese government’s plan to improve the pathway to permanency for casual workers has employers worried, fearful their ability to employ casual workers will be restricted.

Even before the details had been released, there was certainty, in the words[1] of Australian Industry Group chief executive Innes Willox, that there “is simply no justification for further changes to the regulation of casual work”.

In support of this argument are statistics suggesting the casualisation trend has peaked. But that’s by no means certain: the most recent data from the Australian Bureau of Statistics shows casualisation climbing again, with an overall rate of 23.5%.

The counterargument is that entrenched casualisation doesn’t make the status quo right, and that the government’s proposed reforms will give greater recognition to reality. That is, if a worker is effectively working as a permanent employee, they have the right to be treated as such. Read more: Albanese government to make it easier for casuals to become permanent employees[2] Rise of the ‘permanent casual’ While casual employment can often suit both employer and employee, the evidence does suggest some employers have exploited the legal ambiguities around definitions and obligations. Australia’s National Employment Standards – the minimum safety net for all workers – say a casual employee who has worked for their employer for 12 months must be offered the option[3] to convert to full-time or part-time (permanent) employment. But there are significant exemptions, particularly for small business. Close to 60% of Australia’s casual workers have been with their employer for more than a year[4], and 45% to 60% report regular hours and pay[5]. This has resulted in the great Australian oxymoron of “the permanent casual”. There is effectively a class of workers who don’t get holiday and sick pay, no matter how long or regularly they work, simply because their employer deemed them “casual” when they began. Read more: The truth about much 'casual' work: it's really about permanent insecurity[6] The legal landscape Since the 1990s, workers and their union representatives have challenged these contrivances in industrial tribunals. Several of these decisions have been tested on appeal in the Federal Court. In two cases in 2018 and 2020[7], the Federal Court agreed a worker’s employment status should based on the reality of their long-term employment relationship. That is, if there was continuity, based on extended, regular patterns of employment, a worker was a permanent employee. Similar principles applied to those deemed contractors. However, appeals to the High Court in 2021[8] and in 2022[9] overturned these rulings. For the High Court, a formal stipulation of relations written in a contract were all that counted. The reality of life on the job was irrelevant. Read more: What defines casual work? Federal Court ruling highlights a fundamental flaw in Australian labour law[10] Common law versus parliament The High Court’s decisions – that formal freedom of contract has to be respected irrespective of the realities of bargaining power – reflect a long struggle between the common law and parliament in matters concerning working life. In the 1700s and 1800s, workers were jailed for meeting to discuss wage campaigns. To this day, commercial common law considers the principle of “freedom of contract” as the foundation for all commercial relations – including those involving employment. Union activity is an illegal restraint of trade. These principles have never been changed in the courts. It is only by statute (legislation passed by parliament) that trade unions and collective action by workers has been allowed. The federal Employment and Workplace Relations Minister, Tony Burke, says[11] the government “will legislate a fair, objective definition to determine when an employee can be classified as casual”, and no one will lose their casual status if that is their preference. There will, no doubt, be opposition, with warnings about threats to productivity and suggestions economic conditions are too fragile. But there’s a lot to be said in favour of giving greater recognition to reality.

References

  1. ^ the words (www.theaustralian.com.au)
  2. ^ Albanese government to make it easier for casuals to become permanent employees (theconversation.com)
  3. ^ must be offered the option (www.fairwork.gov.au)
  4. ^ for more than a year (www.aph.gov.au)
  5. ^ regular hours and pay (www.aph.gov.au)
  6. ^ The truth about much 'casual' work: it's really about permanent insecurity (theconversation.com)
  7. ^ 2018 and 2020 (www.lexisnexis.com.au)
  8. ^ in 2021 (www.corrs.com.au)
  9. ^ in 2022 (www.minterellison.com)
  10. ^ What defines casual work? Federal Court ruling highlights a fundamental flaw in Australian labour law (theconversation.com)
  11. ^ says (ministers.dewr.gov.au)

Authors: John Buchanan, Professor, Discipline of Business Information Systems, University of Sydney Business School, University of Sydney

Read more https://theconversation.com/employers-will-resist-but-the-changes-for-casual-workers-are-about-accepting-reality-210272

SME Business News

How Virtual Team Building Is Reshaping Modern Business Dynamics

In the past years, virtual team building has established itself as one of the cornerstones in building modern business strategy. With more organizations now switching to a model of remote or ...

How digital loyalty programs drive engagement in a value-conscious economy

Ongoing economic pressures are driving Australian retail businesses to rethink how they engage with increasingly value-conscious consumers. Rising living costs have shifted spending habits, p...

How Ofload and Logistics Tech Power Australia’s Biggest Shopping Month

Black Friday has evolved from a single day event into "Black November," overtaking December as Australia’s biggest shopping month. This shopping phenomenon, expected to drive $6.7 billion [1...

Kimberly-Clark Australia and Woolworths set to reduce plastic waste

Kimberly-Clark Australia, one of the nation’s leading personal care product manufacturers, has partnered with Woolworths on a packaging trial that’s set to remove tonnes of plastic waste from...

The Times Features

Energy-Efficient Roof Restoration Trends to Watch in Sydney

As climate consciousness rises and energy costs soar, energy-efficient roof restoration has become a significant focus in Sydney. Whether you're renovating an old roof or enhan...

Brisbane Water Bill Savings: Practical Tips to Reduce Costs

Brisbane residents have been feeling the pinch as water costs continue to climb. With increasing prices, it's no wonder many households are searching for ways to ease the burde...

Exploring Hybrid Heating Systems for Modern Homes

Consequently, energy efficiency as well as sustainability are two major considerations prevalent in the current market for homeowners and businesses alike. Hence, integrated heat...

Are Dental Implants Right for You? Here’s What to Think About

Dental implants are now among the top solutions for those seeking to replace and improve their teeth. But are dental implants suitable for you? Here you will find out more about ...

Sunglasses don’t just look good – they’re good for you too. Here’s how to choose the right pair

Australians are exposed to some of the highest levels[1] of solar ultraviolet (UV) radiation in the world. While we tend to focus on avoiding UV damage to our skin, it’s impor...

How to Style the Pantone Color of the Year 2025 - Mocha Mousse

The Pantone Color of the Year never fails to set the tone for the coming year's design, fashion, and lifestyle trends. For 2025, Pantone has unveiled “Mocha Mousse,” a rich a...

Business Times

How Virtual Team Building Is Reshaping Modern Business Dynamics

In the past years, virtual team building has established itself as one of the cornerstones in building modern business st...

How digital loyalty programs drive engagement in a value-consciou…

Ongoing economic pressures are driving Australian retail businesses to rethink how they engage with increasingly value-co...

How Ofload and Logistics Tech Power Australia’s Biggest Shopping …

Black Friday has evolved from a single day event into "Black November," overtaking December as Australia’s biggest shoppi...

LayBy Shopping