“Same Job, Same Pay” – what it means for employers

The “Same job, Same pay” legislation aims to ensure that labour hire employees receive remuneration on par with those covered by their host employer’s enterprise agreement. Effective from December 15, 2023, employees, unions, and/or host employers have the option to seek regulated labour hire arrangement orders from the Fair Work Commission.

If approved, these orders mandate that labour hire employees must be paid no less than their counterparts covered by the host’s enterprise agreement. Some exceptions may apply, such as for trainees, businesses with fewer than 15 employees, or employment periods less than 3 months.

This legislation prohibits the practice of paying labour hire workers lower rates than employees performing identical duties under an existing enterprise agreement. The Fair Work Commission, in deciding whether to grant such orders, will assess whether the work performed by the labour hire worker constitutes the supply of labour or the provision of services. The determination hinges on factors such as:

• How much control the employer has over the work ie rostering, assigning tasks, review of quality of work?
• Does the employee use their own systems?
• Are industry or professional standards applicable to the host employer in relation to the labour hire employee?
• Is the nature of the work specialised or expert?

It’s important to note that although these orders can be established starting December 15, 2023, they will not take effect until at least November 1, 2024.

What actions can be taken?

We recommend you:

• Assess your current workforce to identify any labour hire employees.
• Conduct pay reviews, particularly for employees undertaking similar duties, including labour hire workers and those classified as independent contractors. Note any pay discrepancies that may arise from these reviews.
• Prepare for potential increases in labour costs if you currently employ or plan to hire labour hire workers.

This article is not intended to provide legal advice, but rather constitutes general guidance on upcoming changes in workplace regulations.

For more information or to check if your labour hire employees are being paid the correctly, call our Workplace Relations Specialists on 1300 445 687.