The Australian Labor Party (ALP) has launched an attack on the government's recent amendments to the rights of casual employees.
The Fair Work Amendment (Casual Loading Offset) Regulations 2018 (Regulations) were made by the government in December to address uncertainties created by a case in the Federal Court during 2018 regarding casual employee entitlements.
Casual employees are already compensated with a casual loading in their ordinary wages for the absence of annual leave and sick pay entitlements.
The court's decision in the Workpac v Skene case last August gave casual employees the potential to pursue back-pay claims for annual leave and sick pay entitlements.
The regulations made by the government in December 2018 were intended to address the issue by clarifying these entitlements.
Australian Retailers Association (ARA) executive director Russell Zimmerman said that if the ALP was successful in coercing the independents on the senate's crossbench to overturn the regulations, retailers could be liable for millions of dollars in back-pay to casuals who were never entitled to annual leave or sick pay.
“These regulations are crucial to providing certainty to retailers and their casual employees, and without them, the confusion around entitlements will only get worse and small and family-run retailers will be crippled by the financial cost.
“The ALP will destroy casual employment by making it completely insecure, with businesses being forced to cut shifts or shut their doors entirely.
“Retailers really care about their casual employees and want to provide them with the best opportunities that they can.
“However, constantly shifting the goalposts and adding millions of dollars to the industry's wage bill means many retailers may have to make the heartbreaking decision to say goodbye to casual employees who rely on their jobs.”
The retail industry employs over 10% of the Australian working population, according to the ARA.
It believes the ALP's manoeuvre will have a direct impact on the retail industry.