Major sick pay change announced for Victorian casual and insecure workers

Victorians who work in casual or other insecure jobs will no longer be forced to choose between a day’s pay and looking after their health.

Victorian casual workers and those with insecure employment will be able to access five days of government-funded sick or carer’s pay, under a new initiative aimed to stamp out workers choosing between their pay and health.

In a national first, around 150,000 workers in the hospitality, supermarket and retail fields will be eligible for the pilot program.

The $245.6 million Victorian Sick Pay Guarantee will transform casual and contract work in Victoria by providing workers the safety net they need to take time off when they’re sick or need to care for loved ones.

It comes after the pandemic highlighted serious flaws in the system that meant casual workers often had to choose between their income and health.

Premier Daniel Andrews said the trial, which will run for two years, will mean eligible workers will receive up to five days a year pay at the national minimum wage.

“When people have nothing to fall back on, they make a choice between the safety of their workmates and feeding their family. The ultimate decision they make isn’t wrong – what’s wrong is they’re forced to make it at all,” he said.

“The last two years have shown just how difficult that choice can be for casual workers, so we’re doing what we can to make sure it’s a choice they don’t have to make.”

Daniel Andrews has announced a huge change to sick pay in Victoria. Picture: NCA NewsWire / Andrew Henshaw

Occupations included in the first phase include hospitality workers, chefs and kitchen hands, supermarket and supply chain workers, retail and sales assistants, aged and disability care workers, cleaners and laundry workers and security guards.

Currently most casual and contract workers don’t have access to sick and carer’s pay and it’s anticipated more than 150,000 people will be eligible for the scheme.

The Victorian state government is fully funding the scheme over the first two years, with hopes there will be a reduction in workplace injuries and illness, general productivity improvements from healthier workers, and lower staff turnover rates.

Workplace safety Minister Ingrid Stitt said the program would be administered directly to workers, cutting out the employer.

“We need every worker for the recovery of our economy – the best way to do that is through secure work,” she said.

“This scheme will protect more Victorians and give them the support they need when they’re sick or caring for a loved one.”

Those eligible will be able to access up to five days of sick or carer’s leave per year. Picture: NCA NewsWire / Andrew Henshaw

On Monday, the United Workers Union welcomed the announcement and called on other jurisdictions to follow Victoria’s lead.

“If the Covid pandemic has shown us anything, it is that casual, precarious and insecure work has ramifications for the health of the whole community,” UWU National Secretary Tim Kennedy said.

“I commend the Andrews government for listening to the concerns put to them by workers and the union and call on the federal government and other state governments to consider a similar program.”

He called on Prime Minister Scott Morrison to amend the National Employment Standards to ensure 10 days of paid sick leave for all workers.

To find out if you’re eligible for a payment, visit vic.gov.au/sick-pay-guarantee and to apply for a payment if you’re eligible visit service.vic.gov.au.