Announcement date
4 September 2023
Link to announcement
https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7072
Problem being addressed
As part of its Secure Australian Jobs Plan, the Australian Government made an election commitment to legislate a fair, objective test as to when an employee could be classified as a casual employee, so that people have a clearer pathway to permanent work.
There are two reviews relevant to this commitment which identify the impact of insecure work for casual employees and barriers to conversion in the current framework - the Senate Select Committee on Job Insecurity Inquiry and the Review of the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery Act) 2021 (Cth).
Proposal
The Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 seeks to replace the existing definition of ‘casual employee’ with an objective definition that will allow for consideration of the practical reality of the employment relationship. It also introduces a new employee choice pathway for eligible employees to change to permanent employment if they wish to do so.
Assessed IA outcome
Impact Analysis Equivalent
Assessment comments
Consistent with the Government's Impact Analysis (IA) requirements, the Department of Employment and Workplace Relations has certified the following reviews as meeting the requirements of an IA:
- Senate Select Committee on Job Security Inquiry
- Statutory review of the Fair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Act 2021
The Office of Impact Analysis (OIA) does not assess the quality of reviews and IA equivalent documents used in lieu of an IA. Impact Analysis Equivalents are assessed by OIA for relevance to the recommended option(s) and for the coverage of the 7 Impact Analysis questions conducted. The OIA assessed that the options analysed in the certified reviews are sufficiently relevant to the regulatory proposal. The Impact Analysis Equivalent contains additional analysis prepared by the Department of Employment and Workplace Relations to address IA question seven.
Regulatory Burden
The Department of Employment and Workplace Relations estimates an increase in regulatory costs of $1,393,372 per year, averaged over ten years.