Employers who underpay their workers or engage in unscrupulous practices will face tighter penalties under new reforms Labor proposed on Monday.
Opposition Leader Bill Shorten introduced a number of measures aimed at cracking down on systemic worker exploitation, including giving more power to the Fair Work Ombudsman and increasing the penalties for employers who underpay their workers.
Mr Shorten believes the revelations that large companies such as 7-Eleven and Pizza Hut were engaging in widespread exploitation of workers shows more needs to be done to protect workers.
He said these high profile examples are just the tip of the iceberg, with the Fair Work Ombudsman recovering $22.3 million in back pay for more than 11,000 workers in 2014-15.
The size of the beefed up penalties will be determined after legal advice and consultation with stakeholders following the announcement on Monday.
Labor's workplace reforms:
- Significantly increased penalties for employers who deliberately and systemically avoid paying their employees properly
- Strengthening legal protections for workers' entitlements and increasing penalties
- Giving the Fair Work Ombudsman more power to pursue employers who liquidate their companies in order to avoid paying the money they owe their workers
- Introducing reforms to ensure that temporary overseas workers are not being exploited and underpaid and that there is a level playing field for all workers in Australia
Related reading
Carnell to provide voice for business
