Secure Work Pilot Scheme - CONSULTATION PAPER - Engage Victoria
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Contents Minister’s message 3 About this consultation paper 4 Background 4 Next steps 5 Key elements of the Pilot 7 1. Groups for inclusion in the Pilot 7 2. Worker eligibility 8 3. Receiving and drawing down payment allocation 9 4. Types of leave covered in the Pilot 9 5. Registering and making a claim 10 6. Documentation required to support applications 10 and payments 7. Protections for workers who apply to use the Pilot 11 Other matters 11 How to make a submission 13 Key dates 13 Summary of questions 15 Secure Work Pilot Scheme CONSULTATION PAPER 1
Minister’s The COVID-19 pandemic has shone a light on the difficult choice faced by many working Victorians, being forced to choose between a day’s pay and their health – message and the health of every Victorian. In November 2020, the Victorian Government announced a new ‘Secure Work Pilot Scheme’, which will provide up to five days of sick and carers’ pay for casual or insecure workers in priority industries. Once up and running, the two-year pilot will afford these workers sick pay when they are unwell, and carers’ pay when they need to take time to look after someone they care for. Importantly, it will mean Victorians aren’t being forced to choose between the safety of their co-workers – and putting food on the table for their family or caring for others. The Secure Work Pilot Scheme (the Pilot) will begin by early 2022 and will cover workers in selected industries with high rates of casualisation or insecure work. The Pilot will roll out in phases over two years, with the occupations eligible for each phase to be finalised after consultation. An evaluation of the Pilot will be undertaken to support consideration of an ongoing scheme. While any ongoing scheme would be subject to an industry levy, the Pilot will be fully funded by the Victorian Government at no cost to business. We are now seeking input from the Victorian community to assist with the design of the Pilot. Your contributions will help us to ensure the Pilot best meets the needs of Victorian workers, so we can take this first big step of tackling insecure work in Victoria. Ingrid Stitt MP Minister for Workplace Safety Secure Work Pilot Scheme CONSULTATION PAPER 3
About this consultation paper This consultation paper sets out some of the Pilot key elements, including the number of days the payment will be available for and the rate of payment, as well as the categories of workers who will be included in the Pilot. The Victorian Government is developing The Victorian Government is seeking public input through a Secure Work Pilot Scheme (the Pilot) for this consultation paper on aspects of the Pilot’s scope workers in industries with high rates of and delivery. This includes consultation on whether the casualisation and insecure work. In addition industries and occupations suggested for inclusion to providing sick and carer’s pay to workers in the Pilot pick up the most insecure forms of work. without existing paid entitlements, this It also discusses how absences and eligibility could be defined, and what the administrative process for Pilot will also further inform Government’s applying for the payment could look like, including what understanding of the issues faced by documentation workers will need to provide and what insecure workers in Victoria. evidence is necessary. Background The COVID-19 pandemic has This puts the health and wellbeing These temporary schemes highlighted significant costs to of the Victorian community at risk removed the difficult choice for individuals, businesses and the and incurs additional costs to the workers between an income and community of insecure and casual health system. health or care of a loved one. Now work. The costs to individuals the Victorian Government has The public health costs of insecure include lost income when workers announced the development of work, and the choices workers need to stay at home because the Secure Work Pilot, to provide faced, were recognised by the they are sick or caring for a family broader access to sick and carer’s Victorian Government during the member, or the health impacts pay for workers who do not COVID-19 pandemic. In response to workers who feel they have to otherwise have access to these paid to the pandemic, the Victorian work even when they are sick. benefits. While partly a response Government provided a one-off The costs to businesses are also to the COVID-19 pandemic, the $450 payment to individuals not large, through productivity losses Secure Work Pilot is also designed to eligible for sick leave, so that they if workers continue to work while ill, respond to the growing prevalence could isolate while waiting for a or because workers with illnesses of insecure work and casualisation test. The Victorian Government infect their colleagues, reducing across the economy. also implemented the COVID-19 the productivity of other workers. Worker Support payment last The Secure Work Pilot will be fully Research has shown that the costs year that has since been replaced funded by the Victorian Government for businesses exceed those of by the Australian Government’s with no cost to business. Any providing sick leave. Pandemic Leave Disaster Payment. ongoing scheme would be subject Finally, the costs to the Victorian This payment – a $1,500 lump sum to an industry levy to be determined community are significant. Workers payment – is intended to help in consultation with industry. face pressure to attend work when Victorians who are unable to earn sick due to financial stress or job an income due to quarantine, self- insecurity. For example, a single isolation or caring for someone individual in a supermarket, aged with COVID-19. care, or hospitality business or setting (among the most casualised of industries) who works while ill, could spread it through the community to dozens of members of the public. 4 rSecure epaP nWork Pilot oitatlusnoC Scheme emehcCONSULTATION S toliP kroW erPAPER uceS
CASE STUDY Case study – Mohammed, 31 I arrived in Australia as an international student in 2009. I didn’t have any family to fall back on if things got tough, so I had to take on a lot of casual work to provide me with some security. I have worked in transport companies delivering groceries, taxi driving, Uber driving and waiting in restaurants and cafes. In some jobs, I was called at 3am and offered a shift for 5am. If I didn’t answer in time, the shift would be passed to someone else. When you are casual there is enormous pressure to keep your job. This means you have to go in when asked, or you won’t get another shift. I am currently a casual in a restaurant. I have irregular hours, and never know how much money I am going to make. It is hard to plan for your family or know if you can afford to take the children out for special occasions. If I take a day off to care for my wife Next steps or children, I end up short of money that week. The Victorian Government provided $5 million in the 2020-21 Budget to undertake design work, economic modelling, and extensive consultation with unions, industry, and the broader community. This consultation will support the detailed design, administration, and implementation of the Pilot, and will include union, industry and business representation. Further targeted consultation will be undertaken by the Victorian Government throughout 2021 and during the two year Pilot. The first phase of the Pilot will launch by early 2022. Secure Work Pilot Scheme CONSULTATION PAPER 5
Key elements of the Pilot The following questions are designed to assist the Victorian Government design the Pilot. They relate primarily to who should be included in the Pilot, what their benefit should be, any restrictions that should apply, and what processes should be put in place to ensure the integrity and sustainability of the Pilot. Occupations already announced for possible inclusion 1. Groups for inclusion in the Pilot such as commercial cleaning, hospitality, in the Pilot security, supermarket, and aged care workers are expected to meet these criteria. Industries that have high rates of casual workers The Victorian Government is proposing a phased and are expected to be included in the Pilot are: roll-out of the Secure Work Pilot to ensure that it is established in a controlled way. This will provide • Accommodation and food services evidence to refine the design before consideration of whether the scheme should be established on • Retail trade an ongoing basis. The Pilot is expected to focus on • Healthcare and social assistance industries with high levels of casual workers, and specific jobs within those industries. • Arts and recreation The Victorian Government is exploring what insecure • Agriculture, fishing, and forestry work looks like in order to guide what industries • Administrative and support services and jobs may be included in the Pilot. The suggested criteria are: Questions for consultation A. There is no access to existing benefits: 1. Are the suggested criteria of insecure work a. Work is not permanent full-time or part-time appropriate to guide inclusion of occupations b. No entitlement to paid sick or carer’s leave in the Pilot? 2. Which criteria and industries should be prioritised B. Work hours are unpredictable over the short over others? Why? and medium term, such as experienced by many platform workers 3. Should the occupations identified above in the identified industries with high rates of casualisation C. There is lower financial security, e.g.: and insecurity be considered for the Pilot? a. Hourly wages or remuneration earned are close to the national minimum wage, or relevant 4. What other specific occupations within the priority minimum award wages, or industries meet the criteria for potential inclusion? b. Low wages or remuneration, or c. Unpredictable earnings D. Overrepresentation of vulnerable groups (e.g. workers from culturally and linguistically diverse backgrounds, young workers) E. Lower bargaining power and rights Secure Work Pilot Scheme CONSULTATION PAPER 7
2. Worker eligibility The Pilot will be open to workers in eligible occupations, in the industries described earlier. In addition, the Victorian Government is considering other eligibility criteria that may be required. For example: A. Engaged as a casual, eligible independent contractor, or sole trader B. Work is performed in Victoria C. Worker has the right to work in Australia, including relevant visas D. Worker’s primary income must be from an eligible occupation in the included industry, if they are employed or work for multiple businesses or across multiple occupations. E. Worker’s annual remuneration or earnings are below the national average ($1,711.60 weekly wage as of November 2020, or the equivalent of $45.64 per hour) Eligibility criteria will apply for the Pilot. Any future ongoing scheme would be subject to review and evaluation, including any eligibility criteria. Questions for consultation 1. Are the proposed eligibility criteria appropriate? What other eligibility criteria should be considered? 2. How should the eligibility of independent contractors be determined? 3. Should the Pilot be means tested? If yes, how much should a worker earn before they are no longer eligible? 4. Are there any additional considerations that need to be made for workers with multiple employers or working for multiple businesses? 8 Secure Work Pilot Scheme CONSULTATION PAPER
3. Receiving and drawing down 4. Types of leave covered payment allocation in the Pilot The Pilot will provide sick and carer’s payment to The Pilot will provide sick and carer’s payments, for eligible workers at the national minimum wage instances where paid personal/carer’s leave could be ($20.33 per hour, as at 1 July 2021) for up to five days taken under the National Employment Standards for per calendar year, in total. A “day” is defined as full and part time workers. This definition is: 7.5 hours within a 24-hour period. A. because the worker is not fit for work because of The five days per calendar year is per worker and does a personal illness, or personal injury, affecting the not accumulate across multiple employers. The days worker; or available do not accrue if they are unused and they reset at the beginning of each calendar year. B. to provide care or support to a member of the worker’s immediate family, or a member of the The Victorian Government is considering how up to five worker’s household, who requires care or support days should be made available to all eligible workers, because of: and how they can be claimed. For example, should the allocation be pro-rated for workers who work less than (i) a personal illness, or personal injury, affecting 37.5 hours, or should the payment be less for shifts less the member; or than 7.5 hours. (ii) an unexpected emergency affecting the member. Questions for consultation The Pilot may provide payments for illness or injury if 1. Should the number of days allocated be prorated someone is experiencing mental illness or if the worker relative to full-time employment? For example, is injured as a result of family or domestic violence, in if workers on average work 20 hours per week the same way as any other illness or injury. Payments or less, should they only receive 2.5 days per may also cover stress and pregnancy related illnesses. calendar year? Payments may be claimed so that a worker is able to take time off from work to care for or support a 2. How should payment applications be made? member of their immediate family or household who In full day, half day or other smaller increments? is sick, injured or has an unexpected emergency. For example, if a worker was only rostered to work However, access to payments is not equivalent to a minimum shift of three or four hours, how much a right to take leave. should they be able to claim? 3. Should seasonal workers be eligible for the same Questions for consultation number of days, or how should the allocation be calculated for these workers? 1. Are the definitions of leave types under the National Employment Standards appropriate? 4. Should there be limits on the number of hours If not, what alternatives could be considered? eligible workers can apply for each time they access a payment? Secure Work Pilot Scheme CONSULTATION PAPER 9
5. Registering and making 6. Documentation required to a claim support applications and payments Eligible workers would be required to register online, supply documentation, and verify their identity when they first register. Workers may also be asked to submit As with existing forms of paid sick and carer’s leave, supporting documentation each time they make an workers in the Pilot may be required to provide application. Once an application is approved, the funds evidence if requested to support their application would be paid directly into the worker’s nominated for the payment, which may include: bank account. • Proof of identity when establishing an account Applications must be made within a reasonable period (e.g. Victorian driver’s licence, Victorian Seniors following the absence, and payments will be provided Card, Victorian Proof of Age Card or passport) through the Pilot promptly. For example, applications • Evidence of employment on a casual basis may be required to be submitted within two weeks (e.g. payslip, letter of employment or letter of offer) of the absence, and the Pilot administrators may be or self-employed (e.g. a valid Australian Business required to process applications and payments within Number, Statutory Declaration) three working days of receiving a complete application. • A copy of Visa Entitlement Verification Online Eligible workers must not be receiving payments for (VEVO) documentation if the worker is a visa holder the same period from: with work rights A. other Victorian Government or Commonwealth • Evidence to support that the worker was unable income assistance programs (e.g. JobSeeker to work because of illness or injury; or needed to Payment, Test Isolation Payment, Pandemic provide care or support to an immediate family or Leave Disaster Payment) household member. Evidence could include copy of a work roster, medical certificate/s, mental health B. other forms of paid support including sickness, treatment plan/s or an online declaration income protection or WorkCover compensation. • Average remuneration earned by an independent The worker’s obligation to provide notice or evidence contractor over a period, which shows what a to their employer of an absence from work still remains, worker would typically earn during a specified and is not affected by the Pilot. period. Workers will be required to repay the money if they Questions for consultation provide false or misleading information in their application. 1. Should the employer or business be involved in the Pilot (which could include being registered, confirmation of employment status or confirmation Questions for consultation of unpaid sick or carer’s leave)? 1. Is this the right level of evidence workers should be 2. Are there any additional considerations that would required to provide? streamline the operation of the Pilot, including ensuring timely access to payment and minimising 2. Should some workers demonstrate that they would paperwork that Pilot participants must provide? otherwise have been working for the period in which the application is made? 3. What timeframes would be reasonable to require workers to submit a claim after a period of being 3. Should workers have to submit forms of evidence unable to work? to support every individual application or have the information available if requested through regular 4. Are there any additional considerations that would auditing processes? help ensure the integrity of the Pilot, including any assurance or audit processes that should be established? 5. If an online platform were to be established, what information should be made available to insecure workers (e.g. referrals to other relevant agencies or organisations including Wage Inspectorate Victoria, Fair Work Ombudsman etc.) 10 Secure Work Pilot Scheme CONSULTATION PAPER
7. Protections for workers who apply to use the Pilot There are a range of broader worker protections currently in place for the Victorian workforce, which include those in the Fair Work Act 2009, the Equal Opportunity Act 2010 and the Occupational Health and Safety Act 2004. A key consideration in the Pilot will be ensuring that the sick and carer’s pay can be accessed without negatively impacting ongoing work arrangements. The Victorian Government is seeking input on issues which casual or insecure workers, and the businesses for whom they work, are likely to face in accessing the Pilot. These include potential impacts on their existing working relationships, and how these issues could be addressed if the workers were to access payments. Any further protections will be subject to detailed and close consultation with unions and industry bodies. Questions for consultation 1. What issues might insecure and casual workers face in maintaining a positive working relationship with the business they work for? Should there be any additional protections for workers to access the scheme and what form could they take? 2. What issues might businesses who have casual and insecure workers face if their workers access the Pilot? What aspects of the scheme design could address these issues? Other matters We have asked a number of questions to focus consultation and seek feedback on matters of particular interest but recognise that no set of questions is exhaustive. We would welcome any additional feedback you would like to provide. 1. Are there any other matters that should be considered in the Pilot’s design and operation? Secure Work Pilot Scheme CONSULTATION PAPER 11
How to make a submission We are making sure every Victorian has a say – whether you’re a worker, a union, a stakeholder or from a business. We want to hear your story and your experience. Everyone’s input is welcomed, via the Engage Victoria platform at engage.vic.gov.au. You can provide feedback through the Engage Victoria platform until August 2021. The Victorian Government invites written submissions on the topics and themes in this consultation paper. You may elect to only respond to the questions of most interest to you or your organisation or provide other feedback relevant to the Pilot. Between August 2021 and the start of the Pilot the Victorian Government will also engage in targeted consultation with a broad range of stakeholders, including peak industry bodies, unions and businesses and workers. If you are a worker or business, there is also a survey you can complete to share you experience and feedback on the Engage Victoria platform which will be open throughout the public consultation period. KEY DATES Consultation commences 8 July 2021 Submissions on consultation paper close 17 August 2021 Pilot design Throughout 2021 Pre-registration opens Second half of 2021 First phase of the Pilot roll-out Late 2021 or first half of 2022 Second phase of the Pilot roll-out First half of 2023 Secure Work Pilot Scheme CONSULTATION PAPER 13
Summary of questions These questions appeared throughout 5. Registering and making a claim the document to help stimulate ideas and 1. Should the employer or business be involved in prompt you to share information and insights the Pilot (which could include being registered, with others. confirmation of employment status or confirmation of unpaid sick or carer’s leave)? 1. Groups for inclusion in the Pilot 2. Are there any additional considerations that would streamline the operation of the Pilot, including 1. Are the suggested criteria of insecure work ensuring timely access to payments and minimising appropriate to guide inclusion of occupations paperwork that Pilot participants must provide? in the Pilot? 3. What timeframes would be reasonable to require 2. Which criteria and industries should be prioritised workers to submit a claim after a period of being over others? Why? unable to work? 3. Should the occupations identified above in the 4. Are there any additional considerations that identified industries with high rates of casualisation would help ensure the integrity of the Pilot, and insecurity be considered for the Pilot? including any assurance or audit processes that should be established? 4. What other specific occupations within the priority industries meet the criteria for potential inclusion? 5. If an online platform were to be established, what information should be made available to insecure 2. Worker eligibility workers (e.g. referrals to other relevant agencies or organisations including Wage Inspectorate Victoria, 1. Are the proposed eligibility criteria appropriate? Fair Work Ombudsman etc.) What other eligibility criteria should be considered? 2. How should the eligibility of independent 6. Documentation required to support contractors be determined? applications and payment 3. Should the Pilot be means tested? If yes, how 1. Is this the right level of evidence workers should much should a worker earn before they are no be required to provide? longer eligible? 2. Should some workers demonstrate that they would 4. Are there any additional considerations that need otherwise have been working for the period in to be made for workers with multiple employers or which the application is made? working for multiple businesses? 3. Should workers have to submit forms of evidence to support every individual application or have the 3. Receiving and drawing down payment information available if requested through regular allocation auditing processes? 1. Should the number of days allocated be prorated relative to full-time employment? For example, if 7. Protections for workers who apply to use workers on average work 20 hours per week or less, the Pilot should they only receive 2.5 days per calendar year? 1. What issues might insecure and casual workers 2. How should payment applications be made? face in maintaining a positive working relationship In full day, half day or other smaller increments? with the business they work for? Should there be For example, if a worker was only rostered to work any additional protections for workers to access the a minimum shift of three or four hours, how much scheme and what form could they take? should they be able to claim? 2. What issues might businesses who have casual and 3. Should seasonal workers be eligible for the same insecure workers face if their workers access the number of days, or how should the allocation be Pilot? What aspects of the scheme design could calculated for these workers? address these issues? 4. Should there be limits on the number of hours eligible workers can apply for each time they Other matters access a payment? 1. Are there any other matters that should be considered in the Pilot’s design and operation? 4. Types of leave covered in the Pilot 1. Are the definitions of leave types under the National Employment Standards appropriate? If not, what alternatives could be considered? Secure Work Pilot Scheme CONSULTATION PAPER 15
Disclaimer This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. While every effort has been made to ensure the currency, accuracy or completeness of the content we endeavour to keep the content relevant and up to date and reserve the right to make changes as require. The Victorian Government, authors and presenters do not accept any liability to any person for the information (or the use of the information) which is provided or referred to in the report. 16 Secure Work Pilot Scheme CONSULTATION PAPER
1. DJPR13411_07_21
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