Australia’s Same Job, Same Pay law, introduced in November 2024, marks a major shift in employment regulation. Designed to eliminate wage discrepancies, it ensures labour hire workers receive the same pay as their directly employed counterparts when performing the same roles.
This reform will significantly impact industries reliant on labour hire, including mining, construction, warehousing, and manufacturing.
Background of the Reform
A key election promise of the Albanese government, this law tackles long-standing wage inequality. Labour hire workers have historically been paid less than permanent employees despite doing the same work—a practice widely criticised by unions and worker advocacy groups.
The legislation requires labour hire firms to match the wages, allowances, and bonuses outlined in host employers’ enterprise agreements. This is particularly significant in industries like mining, where unions have long argued that labour hire workers are unfairly disadvantaged.
Key Features of the Legislation
The legislation includes the following:
- Equal Pay for Equal Work: Labour hire employees must receive the same remuneration as directly employed workers performing the same duties under an enterprise agreement.
- Increased Accountability: Labour hire firms are required to maintain transparent records and ensure compliance with the new standards.
- Enforcement Mechanisms: Penalties for non-compliance have been introduced, enabling regulatory bodies to address breaches effectively.
- Scope of Application: The law applies to all labour hire arrangements where host employers have enterprise agreements in place.
Implications for Industries
The mining sector has been at the forefront of this debate, with unions such as the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) leading calls for change.
Beyond mining, the reform is expected to bring changes to warehousing, agriculture, and manufacturing, where labour hire is frequently used to address workforce shortages. Employers in these sectors may need to reassess their labour hire practices and budgets to ensure compliance with the new requirements.
What Businesses Need to Do Now
To comply with the Same Job, Same Pay law, businesses should:
- Review Labour Hire Arrangements – Ensure labour hire workers receive equal pay and address any discrepancies.
- Engage with Labour Hire Providers – Confirm compliance and align expectations.
- Adjust Budgets – Plan for potential wage increases.
- Train HR and Payroll Teams – Update payroll systems and ensure proper implementation.
- Monitor Compliance – Conduct regular audits and seek legal guidance if needed.
- Communicate with Workers – Be transparent about pay changes to maintain trust.
By taking these steps, businesses can transition smoothly, minimise risks, and maintain a fair and productive workforce.
Looking Ahead
The Same Job, Same Pay law is a major step toward workplace fairness, but its success depends on strong enforcement and business compliance. While workers gain fairer wages, businesses must find ways to integrate these changes efficiently. Over time, the law’s impact on workplace culture and the broader economy will become clearer, reinforcing Australia’s ongoing pursuit of employment equity.