New industrial relations laws mean dodgy bosses could face $1 million fines or jail

Dodgy bosses who underpay employees could cop $1 million fines, under a workplace law shake-up, while part-time workers could be able to pick up extra shifts – but will come at a cost.

Bosses could face $1.1 million fines for deliberately under paying workers, while part-time barmen, retail workers and others in hospitality will be able to pick up extra shifts without their employers forking out for overtime, under a proposed workplace law shake up.

It comes amid growing talk the mining, manufacturing and energy wings of the CFMMEU could split from the construction and maritime arms, with Labor not ruling out supporting proposed laws which could enable the split.

Attorney-General Christian Porter will introduce laws which will see bosses who deliberately underpay workers face jail time or $1.1 million fines. Picture: NCA NewsWire/Gary Ramage

Under the proposed industrial relations reforms, an employer that deliberately and systematically underpays its workers could face big fines and even jail time.

Penalties would include $1.1 million in fines for the employer, or up to four years jail time, and up to $5.5 million for the company.

They would also be banned from managing corporations for five years.

Attorney-General Christian Porter will also today say that a proposed shake up of awards for part-time retail and hospitality workers will incentivise employers to offer them more shifts, if they want additional hours.

Under current rules, employers must pay overtime to a part-time worker for any extra work above their usual contracted hours, which can see additional shifts go to casuals on a cheaper rate.

Changes would mean the worker could do additional shifts at their normal rate of pay, by agreement, if the shift is for at least three hours.

“These reforms are groundbreaking and crucial when it comes to resolving a trio of ills in the current labour market – underemployment, the need for more flexibility and a desire by some employees for more permanent employment,” Mr Porter said.

Mr Porter also hinted that the flexibilities introduced with JobKeeper, around varying a worker’s hours, duties or location, could be extended in some form.

Opposition industrial relations spokesman Tony Burke said the flexibilities were an attack on job security and could cut take home pay.

“The government is using the pandemic as cover to entrench an attack on workers’ rights,” he said.

Attorney-General Christian Porter and Opposition industrial relations spokesman Tony Burke in Question Time on Monday. Picture: Sam Mooy/Getty Images

ACTU secretary Sally McManus said the government’s proposal for casual workers, including a definition of casual work and an offer for permanent employment after a year, was a “huge missed opportunity” which would entrench casual work.

Meanwhile, Labor is willing to consider a bill which would allow a demerger of unions, if voted for in a ballot by its members.

It follows rifts in the upper levels of the CFMMEU between heavyweights in the construction and other divisions of the union.

It could have big ramifications for the union which wields significant power in Queensland.

While it could reduce the union’s size and influence, it would also differentiate the mining and manufacturing divisions from the more controversial construction division.