Andrews government’s sick pay guarantee program has received more than 80,000 claims

Thousands of casual workers have claimed sick leave payments under an Andrews government pilot program that's been criticised as “a slap in the face to full and part time employees”.

More than 55,000 casual and insecure workers have so far taken advantage of taxpayer-funded sick leave payments as part of an Australian-first scheme.

The $245m sick pay guarantee scheme was set up last year by the Andrews government as a pilot program for two years to ensure vulnerable employees weren’t forced to choose between working while unwell and putting food on the table.

Payments are made at the national minimum wage of just over $20 an hour, with up to 38 hours of sick and carer’s pay on offer each year.

The scheme was designed to help workers in insecure jobs stay home when sick during the pandemic, after positive infections were found to be visiting multiple work sites or attending work while symptomatic.

The scheme was set up last year by the Andrews government as a pilot program.

Victorian Chamber chief executive Paul Guerra said the scheme should be scrapped once the trial ends because it rewarded casual workers, who already receive additional loading in lieu of sick and holiday leave, with extra money.

“This scheme unfairly benefits casual workers to the detriment of part and full time workers,” he said.

“It remains our view that once the pilot has concluded, the scheme should be terminated.

“Business, either directly or via additional taxes or levies, cannot be asked to contribute further to an unnecessary scheme at a time when businesses face tumultuous economic headwinds.”

There are concerns the sick leave scheme is an example of ‘double dipping’. Picture: iStock

Australian Food Service Advocacy Body deputy chair Wes Lambert said the scheme could spell the end for some businesses.

“As we continue to face rampant increases to the cost of doing business, this double dipping could drive many food service businesses to the wall,” he said.

“Ultimately if businesses go out of businesses because they are forced to double pay employees, no one has a job – casual, full time and part time.

“This legislation slaps full and part time employees in the face, who are not getting any extra entitlements.”

Australian Retailers Association Industry Affairs Officer Fleur Brown said while the initiative served a purpose during the pandemic, continuing it raised questions.

“If the cost of this scheme in the future were to be funded by retailers, it would effectively see casuals double dipping and could also serve as a handbrake on job creation and hamper Victoria’s recovery efforts,” she said.

The scheme has been criticised for ‘taking away from every single part time and full time employee by giving double pay’. Picture: iStock

Small Business Australia chief executive Bill Lang said the government had carried out “absolutely no consultation” with small businesses or industry groups about the “ill thought-out populist” scheme.

“It’s not thought through, it’s complicated and it’s unfair to the majority of working Victorians,” he said.

Retail and sales assistants, hospitality workers and aged and disability care workers currently make up the highest percentage of workers registered for the program.

Casual and contract supermarket and supply chain workers, cleaners, laundry workers, security guards, food trades workers, cooks, bakers, fast food workers and kitchen hands are also eligible for the program.

Around one in five casual and contract workers work more than one job to earn a living, and many of them have no access to sick and carer’s pay.

Employment Minister Ben Carroll. Picture: Wayne Taylor

Employment Minister Ben Carroll on Thursday said the program had so far received more than 80,000 claims.

Mr Carroll said the government wouldn’t rule out extending the program’s scope.

“Workers shouldn’t feel forced to go to work sick because they can’t afford to miss a day’s pay,” he said.

“That’s why we’re ensuring it’s a choice they never have to make through our nation-leading Sick Pay Guarantee.

“This scheme creates more security for Victorian casual and contract workers, supporting them when they’re sick or caring for a loved one.

“We’re really proud of this scheme.”

Fitzroy based business Zetta Florence encouraged their staff to take up the program.

Retail manager Melanie Neal said this meant they didn’t need to worry about taking time off when they’re unwell but also protected colleagues from illness.