Australian gig workers will soon have the ability to negotiate for fair pay and improved working conditions thanks to a new law set to be introduced by the center-left Labor government in parliament next week. This legislation will specifically address the issue of “employee-like workers” in the gig economy, encompassing individuals who provide food delivery or drive for popular apps like Uber or DoorDash.
Under the proposed law, Australia’s industrial regulatory body will be empowered to establish and enforce standards related to wages, working hours, and insurance for these workers. However, the regulatory body will have discretion to adapt these standards to different workplaces, and the law will not mandate uniform pay or conditions across the board.
Employment Minister Tony Burke acknowledges concerns raised by critics about the potential complexity and increased costs associated with these regulations. Nevertheless, he emphasizes the importance of implementing safeguards to protect vulnerable workers. He argues that the slightly higher prices consumers may experience as a result of these regulations is a worthwhile trade-off for ensuring the safety and well-being of gig workers who are among the lowest-paid individuals in Australia.
The issue of determining the legal status of gig economy workers is a topic of debate in many countries. In June, EU countries reached an agreement on draft rules that would govern whether platform employers need to provide employee benefits.
Furthermore, the public response from employers has been mixed. While Uber expressed support for the establishment of gig economy minimum standards that protect flexibility, the head of Australia’s business lobby group criticized the legislation, arguing that it would harm workers and consumers.
In an effort to address some of the concerns raised by critics, certain conditions, such as overtime rates and rosters, will remain outside the purview of the regulatory body.
If passed, the “Closing Loopholes Bill” is scheduled to take effect on July 1, 2024.
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