The Albanese Government has introduced its Closing Loopholes Bill in Parliament, an attempt to address issues that undermine pay and working conditions. 

Following on from last year when the Secure Jobs, Better Pay legislation was enacted to elevate the minimum standards of working conditions and initiate wage growth, the new legislation is set to impact almost every workplace across the nation.

The Closing Loopholes Bill targets the gaps in existing labour laws. 

The bill encompasses four key elements:

1. Criminalising wage theft: Stricter measures against employers intentionally underpaying their workforce.

2. Minimum standards for gig economy workers: Extending employment standards to gig economy workers, including those on online platforms like Airtasker.

3. Closing forced permanent casual worker loopholes: Ensuring fair treatment of casual workers by closing loopholes that have allowed forced casualisation.

4. Closing the labour hire loophole: Regulating labour hire practices, particularly targeting large corporations like BHP and Qantas.

Prior to the bill's introduction, consultations were conducted, involving input from employer groups and labour unions.

Additional aspects of the Closing Loopholes Bill include:

  • Empowering the Fair Work Commission to establish minimum standards for the road transport sector

  • Implementing the Boland Review recommendations, including the introduction of an industrial manslaughter offence and increased penalties

  • Enhancing support for first responders diagnosed with post-traumatic stress disorder.

  • Expanding the scope of the Asbestos Safety and Eradication Agency to cover silica safety and related diseases

  • Strengthening workplace protections for survivors of family or domestic violence.

  • Providing specific protections for worker delegates, increased legal mechanisms to challenge unfair contract terms, and cracking down on sham contracting

  • Enhancing representation for safety and compliance matters in workplaces, including expanding the Fair Work Commission's powers to investigate suspected underpayments

The government's plan is to shift responsibility onto businesses to demonstrate compliance with the laws. 

While employers have raised concerns about the complexity of these measures, the government insists that they are essential for closing corporate loopholes and safeguarding the rights of Australian workers.

Some industry leaders, such as Business Council of Australia CEO Jennifer Westacott, view the legislation as overly complex and centralising power in the Fair Work Commission. 

Minerals Council of Australia chief executive Tania Constable has characterised these changes as extreme and interventionist, with potential negative economic consequences. 

However, the Australian Council of Trade Unions (ACTU) sees these changes as modest and fair, emphasising the importance of extending rights to small business workers.

The Closing Loopholes Bill is already creating controversy, particularly the provision ensuring labour hire workers receive the same pay as direct employees. However, the government has introduced exemptions for surge workforces and small businesses.