A key business group has warned the Albanese government's next set of workplace relations reforms could hold back pay boosts and jeopardise Australia's robust jobs market.
The Business Council of Australia has raised concerns about the government's proposed crackdown on insecure work, including its promise to nail down a definition of casual work and guarantee labour hire workers "same job, same pay".
BCA head Jennifer Westacott said the tranche of reforms could leave Australia with "rigid and outdated" workplace practices at a time of grave economic challenges.
"At a time of global economic uncertainty, skyrocketing inflation and a global cost of living crisis, Australia has almost full employment and wages are beginning to strengthen," she said.
"Every time we want to make a change we should ask ourselves, what are we risking?"
On the definition of casual work, the BCA says there's no case for change as the number of casual employees is going backwards as a portion of the whole workforce.
But the government worries that too many employees are falling under the casual classification despite working regular, predictable hours like a permanent employee.
While casual employees do get paid more to compensate for sick leave and other entitlements enjoyed by permanent employees, the government believes job security is also important and says a definition will open a clearer pathway to permanent work.
But the BCA warns a definition that treats casuals as permanent if they work regular hours could be problematic and risk employees double dipping on their entitlements and getting both casual loading and paid leave.
The council also said the definition should protect workers' rights to remain casually employed, with many workers preferring casual status so they can leave at short notice and get paid a higher hourly rate.
On the proposal to guarantee labour hire workers "same job, same pay", the BCA said it could leave businesses without this flexible hiring option at all and limit the ability to engage in enterprise bargaining.
Ms Westacott said the government should avoid "needless ideological changes" as it looked to improve the rights of insecure workers.
"We have to go back to basics and we urge the government to deliver reforms that actually achieve its stated goals."
