Read The Times Australia

Daily Bulletin

Law allows Myer to outsource responsibility for labour hire workers

  • Written by: The Conversation Contributor
imageMyer uses a labour hire firm to supply its store cleaners.Julian Smith/AAP

When cleaners for Myer last week called the retail giant out for underpaying them, it wasn’t the first time.

The cleaners were hired as independent contractors by Myer supplier Spotless, and subsequently assigned to work for Myer. The department store released a statement pointing this out and arguing it was Spotless that was their formal employer.

In Australia, as in many other countries, companies are legally entitled to use third parties to help supplement their workforce. They can, for example, outsource labour through trilateral working arrangements such as labour hire, where a supplier engages workers and supplies them to a host company, in exchange for a fee.

This is legitimate and legal, unless the labour hire business is found to act as a mere screen between the employees and the host company. In this case the host company is deemed to be the actual employer.

Provisions under Australia’s modern awards apply to labour hire employees, but labour hire itself is largely ungoverned by specific legal provisions. This legislative loophole has seen a surge of unscrupulous practices aimed at shifting the real employer’s responsibilities onto third – sometimes less reliable – parties.

There is now a Victorian inquiry into labour hire and insecure work, with a submission deadline of November 27, 2015.

We have previously analysed the issues of “dodgy” labour hire contractors operating in the horticulture sector and the exploitation of migrant workers on Australian farms.

Labour hire workers perform their activities under the instructions of and for an entity that is different from the one that hires them and pays their salary. This can jeopardise the protections associated with the standard bilateral employment relationship – such as unfair dismissal laws, occupational health and safety, collective rights and other working conditions like a minimum wage and paid leave entitlements.

Under the current law, it is sometimes difficult to identify the actual employer and, secondly, qualify the worker either as an employee or independent contractor.

The system of engaging labour hire workers as independent contractors - considered legitimate in the past - in light of some of the latest court decisions, has been mostly deemed sham contracting, unless skilled workers are involved.

Even when the employee status is not an issue, if the labour hire business, as in most cases, is deemed to be the employer, the unreliability of most fly-by-night operators makes it difficult to successfully enforce workers' rights.

In many continental European countries that have ratified the relevant ILO Convention, instead, labour hire workers are identified by the law as employees of the supplier and can be hired either on a fixed term or on an open-ended basis. Moreover, unlike in Australia, the legislation provides a joint-liability regime between the labour hire business and the host company, as well as a strict control over the labour market intermediaries by means of a stringent licensing system.

Labour hire can play a positive role in the labour market, despite many Australian labour hire employees being vulnerable to unscrupulous practices aimed undercutting labour conditions. The presence of specialised intermediaries can improve the efficiency of the job matching process, and such arrangements also function as a springboard towards standard employment or at least provide the opportunity for such workers to remain employed.

But the issues of sham contracting and the association with phoenixing activity aimed to elude, among others, employment obligations, need to be tackled and addressed both at state and at federal level. The current Victorian inquiry could be the start of a new approach towards the regulation of labour hire in Australia.

Maria Azzurra Tranfaglia does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.

Authors: The Conversation Contributor

Read more http://theconversation.com/law-allows-myer-to-outsource-responsibility-for-labour-hire-workers-49650

Business News

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Top 4 Wheelchair Ramp Providers in the Boulder Area

Finding the right wheelchair ramp in Boulder will feel like a turning point. Whether you are plann...

Thermoplastic vs. Paint: The True Long-Term Cost Comparison

Line marking looks like a simple line item on a school maintenance budget, until the true cost of ...

Why Vetting Beats Volume: The Real Story Behind Australia's Growing Applicant Pools

On paper, hiring should be getting easier. Job ads across the country are pulling in more applicat...

Moving Out of a Rental in Melbourne? A Practical Moving Checklist

Moving out of a rental in Melbourne is one of those things that always feels further away than it ...

Why a Cordless Rebar Tying Machine Is a Smart Investment for Australian Construction Projects

Tying reinforcing steel by hand means spending hours bent over while making the same twisting moti...

How to Get a Document Notarised in Sydney: What to Bring, What It Costs and How Long It Takes

If an overseas bank, embassy, university, employer or land registry has asked you for a notarised ...

The 2026 Used-Car Market

For a few strange years, the used-car market rewrote its own rules. Supply shortages sent second-h...

Why CCTV Alone Is Not Enough for Modern Business Security

Cameras are usually the initial step that companies take to strengthen their physical security. If...

Why Every Workplace Should Take Emergency Preparedness Seriously

Emergency planning is one of those things many workplaces know they should think about, but it oft...