Thousands set to receive substantial pay rise under new laws

Thousands set to receive substantial pay rise under new laws

From November 1, 2024, Australia’s "Same Job, Same Pay" law guarantees labour-hire workers equal wages with direct employees for the same roles. The reform, supported by unions, addresses pay gaps across sectors, with some workers set to receive up to 28% increases.

By Catherine Ngo Content writer, presenter and podcaster

Across Australia, the federal government's "Same Job, Same Pay" legislation will significantly increase the wages of thousands of labour-hire workers. This law aims to ensure that labour-hire workers receive equal pay to direct employees of the same company, eliminating the previous discrepancy based on the hiring entity.

Starting November 1, 2024, the new workplace law mandates equal pay for labour-hire workers performing identical tasks as permanent staff. This change is expected to impact various industries.

The Fair Work Commission will grant pay increases to over 2,000 airline cabin crew, 200 meat processing workers, and more than 350 miners under initial agreements that were approved. The law's implementation is set to bring consistency to labour-hire workers' compensation, aligning it with their direct employee counterparts.

Addressing wage stagnation 

Addressing wage stagnation was highlighted by Workplace Minister Murray Watt as a key objective of the reform.

"Labour hire has its place, particularly for handling temporary or seasonal workforce demands. However, the labour-hire loophole has been exploited for far too long to undermine agreed-upon wages. Our reform will put an end to this once and for all," he declared.

Watt emphasised that the new legislation would guarantee that workers "performing the same tasks, wearing the same uniforms, and showing up for the same shifts week after week" will no longer receive significantly lower compensation than their directly hired counterparts.

Wage increases of up to 28%

Beyond the initial wave of approvals, the Fair Work Commission is currently reviewing an additional 40 pay agreements. Notably, Qantas labour-hire workers will receive wage increases of up to 28%, highlighting the significant adjustments intended by this legislation to promote pay equity.

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