Secure Work Pilot Scheme - CONSULTATION PAPER - Engage Victoria

 
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Secure Work Pilot Scheme - CONSULTATION PAPER - Engage Victoria
Secure Work
Pilot Scheme
CONSULTATION PAPER
Secure Work Pilot Scheme - CONSULTATION PAPER - Engage Victoria
Secure Work Pilot Scheme - CONSULTATION PAPER - Engage Victoria
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
Secure Work Pilot Scheme - CONSULTATION PAPER - Engage Victoria
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.

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                                                 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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