Ms SWANSON (Paterson) (20:57): Let's rewind the clock and take a look back to the year 2006. I do this because I really think it is important, in this debate, to contextualise the history of how we got to where we are today. I want to take the example of Sally, a mum in my electorate. It's 2006 and she has two children, aged five and nine. She's a single parent who works two jobs to make ends meet. She works at a cafe during the day, from 7 am through to around three, and she has also been able to pick up work in a reception job at a local dental clinic. She does this because she wants to keep her head above water without relying solely on Commonwealth assistance. Sally has worked in these two jobs for around 16 months as a diligent employee, and never takes time off. She is admired by her colleagues for her wonderful dedication. But, WorkChoices, which was introduced by the Howard government in 2005, is about to take a huge toll on Sally's livelihood and ability to earn for her family. Her daytime employer, the cafe, has asked her to sign an agreement stating that she must work every day from nine through to five. This adjustment to Sally's working pattern will severely impact her, as her other employer, the dental clinic, requires her to be in her reception role by 3:30. Thanks to WorkChoices and the Howard government, Sally must either sign the new agreement or face losing her job.

WorkChoices introduced Australian workplace agreements, known as AWAs, which were individual contracts between employers and employees. These agreements allowed employers to set employment terms and conditions directly with individual employees, bypassing collective agreements or awards. WorkChoices significantly impacted the landscape of employment in Australia for years through significantly reducing the role of industry awards in setting minimum employment conditions, including wages and working conditions. Also, employers had greater freedom to set their own employment conditions through AWAs. Simplification of the termination process made it easier for employers to dismiss employees. It introduced a no-fault termination system, allowing employers to terminate employment contracts without specific reasons.

Significantly, when we're talking about this, it feels like it wasn't that long ago, but in the next few years it'll be 20 years since those changes were made by the Howard government. How time flies! But it certainly didn't fly for people, like Sally, who were incredibly distressed by the AWAs, because they significantly limited unfair dismissal protections for employees, they lowered minimum wage protections, they reduced the role and influence of industrial tribunals in resolving workplace disputes and they extended working hours for employees with virtually no negotiation.

Sally wasn't the only one impacted. Casualisation of employees is rife in my electorate, with many in the education, manufacturing and mining industries, just to name a few, complaining to me that they are placed on perpetual contracts, which afford these employees no stability, no security and no voice to challenge their employment conditions. In the mining industry, it's known as 'trying to get a permanent shirt'. If you get a permanent shirt, it means that you are no longer employed under short-term contract job provider arrangements. Getting a permanent shirt means that you'll be employed by the pit, and many people seek those permanent shirts.

In 2009, under the leadership of the Australian Labor Party led by the former Prime Minister Kevin Rudd, the Fair Work Act was enacted by the Australian government. The Fair Work Act replaced the previous Workplace Relations Act of 1996 and introduced significant changes to Australia's industrial relations framework. It aimed to provide a more balanced approach to employment relationships, with a focus on workers' rights and protections, as well as ensuring fairness in the workplace.

As we have heard, in 2005 we had WorkChoices, while in 2009 we had the Fair Work Act. There are several ways in which the Fair Work Act helps people. The act sets out the National Employment Standards, referred to as the NES, which provide a minimum set of employment conditions for all Australian employees. These standards include provisions for maximum weekly hours, flexible work arrangements, parental leave, annual leave, personal and carers leave, public holidays and notice of termination. These standards ensure that all workers receive certain basic rights and entitlements.

There is also protection from unfair dismissal. The act includes provisions that protect employees from unfair dismissal. It establishes a framework for determining whether a dismissal was harsh, unjust or unreasonable and provides remedies to employees who have been unfairly dismissed. The Fair Work Commission also comes under and was established under the act. It serves as an independent body responsible for resolving workplace disputes, setting minimum wage rates and making decisions on a range of workplace matters. This commission helps ensure that workers have a forum to address employment related issues.

In terms of modern awards, the Fair Work Act introduced modern awards, which are industry specific employment standards that set out minimum pay rates, conditions and other entitlements for different industries and occupations. Modern awards help protect the rights of workers in specific sectors, ensuring they receive fair wages and working conditions. Collective bargaining was also important to the Fair Work Act. The act promotes collective bargaining by facilitating enterprise agreements between employers and employees. These agreements lead to improved wages and working conditions through negotiations between workers and employers. Also, flexible work arrangements mean that employees have a right to request flexible working arrangements under certain circumstances, such as caring for children or family members. The act helps people achieve a better work-life balance by supporting these requests.

Protection for vulnerable workers was also included in the Fair Work Act. It aims to protect vulnerable workers, such as migrant workers and young workers, from exploitation and unfair treatment in the workplace, helping to ensure that all workers, regardless of their background, are treated fairly. Workplace health and safety was also incorporated into the provisions related to workplace health and safety, helping to create safer work environments and reducing the risk of injury and accident on the job. It also has anti-discrimination provisions, including provisions to prohibit workplace discrimination on various grounds, including race, sex, age, disability and more. These provisions help create a fair and inclusive work environment. Regarding access to information, employees have the right to access information about their employment conditions such as pay rates, hours of work and leave entitlements. This transparency empowers workers to understand and assert their rights. In relation to compliance and enforcement, the Fair Work Act includes mechanisms for enforcing its provisions, including penalties for non-complying employers. This helps ensure that employers adhere to their legal obligations.

In summary, the Fair Work Act 2009 helps people by establishing a framework that provides basic employment standards, protects workers' rights and ensures a fair and balanced employment relationship between employers and employees. It seeks to create more equitable and just workplaces for all Australians.

I stand before you today to address a pressing issue that affects every corner of our society—the Fair Work Legislation Amendment (Closing Loopholes) Bill. That's what we're really talking about tonight, but I felt it absolutely necessary to provide a framework of history so that people can understand why these changes are necessary and how this evolution has taken place since the Howard years. I want to take this opportunity to explore the significance of the bill, its key provisions and why it's crucial for our nation's future. The Fair Work Legislation Amendment (Closing Loopholes) Bill—remembering that we're amending legislation that was brought in by the Rudd government—is a milestone in our journey towards achieving fair and decent working conditions for all Australians. It comes at a time when the labour landscape is evolving rapidly, with the rise of the gig economy, changing employer and employee relationships, again, and growing concerns about income inequality. This bill is not just a piece of legislation; it's a beacon of hope for workers who have been marginalised and exploited due to gaps in our existing labour laws.

To fully appreciate the importance of this bill we must first understand the context in which it's being proposed. Our Fair Work Act, enacted in 2009, was a significant step forward in protecting workers' rights and promoting industrial harmony. However, over the years, certain gaps and ambiguities have emerged, allowing unscrupulous employers to exploit these loopholes at the expense of their employees. One of the primary challenges this bill seeks to address is the impact of the gig economy on workers' rights. The gig economy has brought flexibility to the labour market, but it has also given rise to precarious employment conditions. Many gig workers are classified as independent contractors rather than employees, depriving them of fundamental protections such as a minimum wage, paid leave and unfair dismissal rights.

Let's go back to Sally, who I was talking about at the beginning. She was working at the cafe. Under the Fair Work legislation, she was to receive a certain amount of standards, even though she had signed the workplace agreement—the AWA. If she was delivering food from the cafe in the gig economy, she would not be receiving very much security at all. That's where we've gone in those years since 2005 and then 2009. So here we are, in 2023, trying to really bolster the protections and drag the legislation into the current landscape of employment in Australia.

The first key provision of this bill is the definition of employment status. The bill provides a clearer definition of employee and independent contractor status, leaving no room for ambiguity. This will prevent employers from misclassifying workers to avoid their legal obligations. It also changes entitlements through minimum wage protections. All workers, regardless of their employment status, will be entitled to a minimum wage that reflects the cost of living. This provision is vital in ensuring that no-one is forced to live in poverty due to their work.

The bill guarantees paid leave entitlements for all workers, including sick leave, annual leave and parental leave. No-one should have to choose between their health or their family and their job. It strengthens the unfair dismissal protections, making it more difficult for employers to terminate employees unfairly, without proper justification. The bill promotes collective bargaining by simplifying the process for workers to join unions and negotiate for better wages and working conditions.

To combat wage theft, the bill introduces stringent penalties for employers who underpay their workers or fail to provide entitlements. I want to say that, in this bill, we're not looking to penalise employers who make honest mistakes. We all know that payroll can be exceptionally complicated. It's often a whole world of pain for employers, in its own right. So, where someone has made a mistake, genuinely and honestly, there will be a way to rectify that. Also, we're talking about businesses with over 15 employees. A small business is a business with 15 employees or under, and I think that's a really important point to make in this.

The reason this bill matters is that the proposed changes will result in reducing income inequality. The widening income gap in Australia is a pressing concern, and I do have a fear at the moment that we have a bit of a two-speed economy running. I think that this bill is going to be a crucial step towards reducing income inequality by ensuring that all workers are paid more fairly for their labour. It's going to protect vulnerable workers, including those in the gig economy, who often have very little bargaining power. It's going to empower them by extending basic labour rights and creating a more level playing field, and it's further going to promote economic stability. Fair and equitable working conditions are essential not only for individual wellbeing but also for economic stability, and—dare I say it—also for community. People need to know when they're going to work, when they're going to be able to look after their children, how they can coordinate with their friends and family for child care and how their lives are going to go. In my experience of life, the more you can plan or at least have a clue about where you're going to be and what you're going to be doing, it does make it a lot easier to live and see out the logistics of life, as we like to call it in our family.

This bill is determined to enhance social cohesion. A fair work environment fosters social cohesion by reducing resentment and inequality in our society. It sends the message that we value and respect the contribution of all workers, regardless of their job type or employment status. I've always believed that a great test of character when you're with someone is how they treat children, animals and those that serve them. So, in this bill, I hope that those that serve us and keep our economy going will have a better sense of fairness and will feel valued. At the end of the day, employers are winners as well, because they foster that sense of belonging to a business. It fosters loyalty. In that sense, productivity and many other gains can be made. I fully support this bill and recommend its passing to the House.