The Australian Government is introducing the ‘Same Job, Same Pay’ legislation, designed to ensure that all workers at a worksite, performing the same job, receive the same pay. According to the Labor Government, this is a transformative step toward ensuring fair treatment and equal pay for all workers, effectively addressing businesses that outsource labor to companies providing lower pay or conditions.
Whilst Pinnacle People will continue to pay in line with what our clients pay their team members, whether under an award, Enterprise Bargaining Agreement (EBA) or otherwise, we do, believe it is crucial that we all understand the implications of this new legislation.
What is the ‘Same Job, Same Pay’ Legislation?
Same Job, Same Pay’ legislation is designed to ensure that employees, including those hired through a third party, receive the same pay and conditions as direct employees performing the same role in the same workplace.
This means that if a labour hire worker is working at a host employer site doing the same job as a directly employed employee, they should be entitled to equivalent wages, entitlements, and conditions.
Key Components of the Legislation
- Equal pay: Labour hire employees must be paid the same as direct employees doing the same job.
- Equivalent conditions: This includes not just wages but also other entitlements such as leave, overtime, and penalties.
- Compliance requirements: Labour hire companies and host employers must ensure compliance with the legislation to avoid penalties.
Impact on Employers
For all employers, particularly those using labour hire services, this legislation means a significant shift in how they budget and plan their workforce. Key impacts include:
- Change in labour cost calculations: Employers are likely to see a change in the way their labour hire partners charge for their labour.
- Compliance monitoring: There will be a greater need for monitoring to ensure compliance with the new rules, including potential audits and reporting requirements.
- Partnership with labour hire companies: Employers will need to work closely with their labour hire providers to ensure that all workers are receiving fair pay and conditions.
Host employers need to be mindful of any outsourced solution where the outsourced company operates under its own EBA or a different award to that paid to others on site.
Impact on Employees
For employees, the ‘Same Job, Same Pay’ legislation promises fairer conditions and possibly higher rates of pay. This legislation ensures equality in the workplace, which will contribute to fostering a positive work environment where every individual can thrive, contribute their best, and feel valued.
The introduction of the ‘Same Job, Same Pay’ legislation marks a significant shift in the labour hire industry. While labour hire workers are already paid under a Modern Award and may not be affected, the intent of the legislation is to promote fairness and equality for all workers.
Pinnacle People’s commitment to compliance and the wellbeing of our clients and employees remains unwavering. Pinnacle People will continue to monitor our clients’ EBAs, their conditions, and pay, as we are accustomed to doing. We will ensure that our on-hired employees continue to be rewarded accordingly.