PALM scheme minimum hours rule to remain until 2026

The federal government is now not expected to make public any findings from a review of the scheme until after the election.

A requirement that Pacific workers must be paid for 120 hours of work over four weeks will remain until early next year, after the federal government extended the provision beyond June.

It is also expected the outcome of a review into the Pacific Australia Labour Mobility scheme will be delayed until after the federal election, to be held before the end of May.

Late on Friday, the Department of Employment and Workplace Relations said growers would continue to have to pay PALM workers a minimum of 120 hours a month until March 31 next year.

The rule came into effect on July 1 last year, after the federal government watered down an earlier proposal to guarantee Pacific workers a minimum of 30 hours employment a week.

“After careful consideration, the government has extended the current minimum hours obligation to 31 March 2026 … with a commitment to undertake a review of key scheme settings,” DEWR said in an industry update.

“This measure will continue to offer flexibility to agriculture employers, to adapt to weather and market conditions.”

National Farmers’ Federation Horticulture Council chief executive Richard Shannon said the decision revealed the Albanese Government’s 2022 commitment to a “tripartite” approach to workforce issues relations involving the federal government, employer groups and unions, “was largely hollow”.

“No change was deemed more unworkable than the requirement for employers to guarantee

an average of 30 hours of work per week,” Mr Shannon said.

“The reason for this winding back, which should be obvious to anyone with even a passing

interest in business, is that no one in horticulture can afford to pay workers to not work.”

Mr Shannon said the decision showed the federal government was pandering to the wishes of the unions, and the number of farmers dropping out of the scheme was evidence it was becoming increasingly unworkable.

In January last year there were 15,860 workers employed in the short-term PALM scheme, which largely accounts for workers in the horticulture sector.

That was down more than 18 per cent by December to 12,935, according to DEWR data.

There was a peak of 22,445 PALM workers in Australia working in agriculture in June 2023.

Professor of economics at ANU’s Crawford School of Public Policy, Stephen Howes, said employers remained unhappy with the current PALM settings but they weren’t turning their backs on it entirely.

“The numbers are around 17,000, it’s not down to zero, or down by half,” Dr Howes said. “We’ve seen employers invest in the scheme and housing (for workers). I’m not going to say it’s finished, but that employer unhappiness remains.”