Same job same pay reforms require labour hire workers to be paid at least the same as directly employed workers performing the same job.
Legislation: Fair Work Act 2009 Part 2-7A | Category: Wages & Payment
What is Same Job Same Pay?
“Same job, same pay” refers to reforms introduced by the Closing Loopholes legislation that require labour hire workers to be paid at least the same as directly employed workers performing the same job. From November 2024, the Fair Work Commission can make “regulated labour hire arrangement orders” that ensure labour hire workers receive no less than the host employer’s enterprise agreement rates.
The provisions apply where there is a labour hire arrangement and the host employer has an enterprise agreement. Unions and affected workers can apply to the FWC for orders. Exemptions may apply for small businesses and genuine service arrangements.
Key Compliance Points for Employers
- Host employers using labour hire should review arrangements for compliance risk
- Labour hire providers may need to increase rates to comply with orders
- Applications can be made by unions representing workers at the host or labour hire employer
- The FWC considers factors including the nature and duration of the arrangement
- Exemptions exist for training arrangements, small business labour hire providers, and genuine service contracts
Frequently Asked Questions
What is Same Job Same Pay?
Same job same pay reforms require labour hire workers to be paid at least the same as directly employed workers performing the same job.
Why is Same Job Same Pay important for employers?
Understanding same job same pay helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
