Labor's 2025 industrial relations reform guarantees labour-hire workers the same pay as direct staff, sets Fair Work minimums for gig workers and criminalises deliberate wage theft.
Same job, same pay Bill
Labor's flagship industrial relations reform addresses the growing use of labour-hire arrangements that undercut permanent employees' wages and conditions. The "same job, same pay" principle requires labour-hire workers to receive equivalent compensation to directly employed staff performing identical work.
The reform targets the practice of using labour-hire agencies to source workers at below-award rates, particularly in industries like mining, logistics, and healthcare where labour-hire workers can earn 10-20% less than permanent employees despite performing the same duties.
Same job, same pay framework
- Labour-hire workers to receive host-site rates: Wages and conditions must match those of direct employees
- Applies to contracts over 3 months & large firms: Minimum duration and size thresholds for coverage
- $5k fine per worker per breach: Significant penalties for non-compliance with parity requirements
- Small business exemption: Firms under 15 employees excluded from requirements
The legislation includes provisions for industry-specific variations where genuine operational differences justify different arrangements, but the default expectation is pay parity for substantially similar work.
Labor IR Reform Implementation
Labour-hire vs host pay gap (avg %)
Mining, logistics, health sectors pre-reform
Minimum standards for gig workers
Labor's industrial relations reform extends employment protections to gig economy workers, addressing the growth of platform-based work in rideshare, food delivery, and freight sectors. The policy recognizes that many gig workers function as de facto employees despite independent contractor classification.
The Fair Work Commission will be empowered to set minimum rates and conditions for platform workers, similar to existing award systems for employees. This represents the first comprehensive attempt to regulate gig work conditions in Australia.
Gig worker protections
- Fair Work Commission to set min rates for rideshare & food delivery: Industry-specific minimum earnings standards
- Right to dispute unfair deactivation: Appeal process for platform account termination
- Portable leave scheme flagged for 2028: Sick leave and annual leave entitlements across platforms
- Collective bargaining rights: Ability for gig workers to organize and negotiate conditions
The reform balances worker protection with maintaining the flexibility that attracts many people to gig work, allowing platforms to continue operating while ensuring workers receive fair compensation for their labor.
Criminalising wage theft
Labor's industrial relations package introduces criminal penalties for deliberate wage theft, making Australia one of the few countries to impose jail sentences for systematic underpayment of workers. The reform addresses high-profile cases of wage theft across multiple industries.
Criminal penalties for wage theft
The new criminal framework establishes severe penalties for deliberate wage theft while providing safe harbors for genuine mistakes. This represents a major shift from civil enforcement to criminal liability for systematic underpayment.
- Up to 4 years jail & $1m fines: Criminal penalties for systematic wage theft including imprisonment for serious or repeat offenders
- Amnesty for self-reported errors: Safe harbor provision for employers who discover and rectify underpayments voluntarily within 90 days
- 100 new Fair Work inspectors: Enhanced enforcement capacity to investigate wage theft complaints and monitor compliance with employment standards
- Corporate liability: Both companies and individual directors can face criminal charges for deliberate underpayment
Wage theft enforcement mechanism
The criminal wage theft framework includes several key elements designed to deter systematic underpayment:
- Intent requirement: Criminal liability requires proof of deliberate or reckless underpayment
- Materiality threshold: Minimum amounts and duration required for criminal prosecution
- Corporate liability: Companies and individual directors can face criminal charges
- Graduated penalties: Sanctions escalate based on severity and repeat offending
Gig worker earnings vs min standard
Per-hour earnings before/after FWC ruling
Reform Highlights
Frequently Asked Questions
Labor's 2025 industrial relations reform represents the most significant changes to Australian workplace law since the introduction of the Fair Work Act. The package addresses modern employment challenges including gig work, labour-hire arrangements, and wage theft while maintaining business flexibility and economic competitiveness.
For more information on Labor's workplace policies, explore the Labor Party profile or visit our workplace rights hub.