More hours but no overtime for part-timers under new proposal

The next stage of the federal government’s proposed changes to industrial relations laws has been released.

Part-time workers in the food, accommodation and retail sectors will have access to more hours but will forgo overtime payments under changes proposed by the Morrison government.

The reforms planned for the three sectors hardest hit by COVID-19 are among measures announced under the omnibus bill, which will be introduced in parliament on Wednesday.

Under the proposal, part-time employees covered by 12 awards can agree to work additional hours on their usual rate of pay.

Industrial Relations Minister Christian Porter said the flexibility would only be available to those who agreed, and that this could be done by text.

The part-time employee has to work at least 16 hours a week with shifts of at least three hours, but they can’t work more than 38 hours per week.

Christian Porter said problems within the IR system were a handbrake on jobs growth as Australia continues to recover from the COVID-induced recession. Picture: NCA NewsWire / Gary Ramage

Mr Porter said the groundbreaking reforms were crucial to resolving underemployment, the need for more flexibility and more permanent employment for workers who want it.

“The new part-time flex employment model that will apply to the retail and hospitality sectors will solve these issues,” he said.

“The reforms will give business the confidence and certainty they need to hire permanent employees rather than focusing on traditionally more flexible forms of employment.

“For employees, it means a higher chance of securing permanent employment, with a guaranteed minimum number of hours, paid leave entitlements and, crucially, more hours of work if they want them.”

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Major industrial relations reforms will be introduced into the federal parliament on Wednesday. Picture: NCA NewsWire / Ian Currie

Opposition industrial relations spokesman Tony Burke is wary of the legislation.

“We don’t want a situation where a part-timer would have through a normal roster change be given more permanent hours and instead of that they’re only offered more non-permanent hours,” Mr Burke said.

“What that means is security that otherwise would have been given to them isn’t.

“They end up called a part-timer but only 12 or 15 of their hours are part time and the remainder are effectively casual.”

However, Mr Burke said it would be different if something was given up in a negotiation in return for a pay rise or some other benefit for the worker.

The Morrison government has already announced changes for casual workers and a criminal penalty for wage theft under the omnibus bill.

A definition of casual employment will be introduced into the Fair Work Act, and casuals who work regular shift patterns for a year can become part time or full time, if desired.

It will also prevent casual workers who have been paid a loading from claiming back leave benefits in a court.

Unions are concerned that changes to the casual workforce will take rights away from workers. Picture: NCA NewsWire / Ian Currie

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Employers who have stolen workers’ wages will face up to four years in prison and fines of more than $1 million under tough new penalties also being proposed.

Business Council chief executive Jennifer Westacott told ABC RN that a system that had flexibility and protected the safety net was needed.

“People want those longer shifts, they want more hours, and they want that to be more predictable, more planned, and I think on balance this is a really good thing,” she said.

“One of the things that’s important in this package is tougher penalties for people who engage in deliberate wage theft, which is different to of course mistakes which happen in complex payroll systems.”