Wage theft is disproportionately impacting workers with disability 

Wage theft is disproportionately impacting workers with disability 

Workers with disability are overrepresented in the gig economy, more likely to work casual hours, and therefore more likely to be at risk of wage theft, according to law firm Slater and Gordon. 

The firm says the overrepresentation of workers with disability in the gig economy highlights the need to remove any further delays in introducing minimum standards for these workers, including across pay, penalty rates, superannuation consultation, payment terms, insurance and more. Such minimum standards could also potentially include the right to annual leave, depending on the worker’s situation.

Cassandra Grey, a lawyer in industrial and employment law at Slater and Gordon said enshrining workers’ rights across the gig economy is essential. 

“Gig economy workers can have low bargaining power, low authority over their work and often receive pay at or below the rates of comparable employees, without the security and protection afforded to employees under Australian industrial relations law,” she said. 

“These reforms for gig economy and casual workers would positively impact many vulnerable workers who can face substantial power imbalances up against large digital platform employers and should not be delayed.”

Grey said casual employees also face potential uncertainty of available work, usually without any leave entitlements.

“People with disabilities already face tremendous hurdles in the workforce, including finding suitable employment, accessing reasonable adjustments, prejudicial attitudes of employers, discrimination and wage theft. So it’s disappointing, but unsurprising, that they’re having to turn to the gig economy to make ends meet,” she said. 

Research from the Australian Human Rights Council evidence heard by the Disability Royal Commission found that people with disability were more likely than others to work casual hours and work in the gig economy. Slater and Gordon says these findings mean these workers are also then more likely to be working without minimum standards and secure pay, issues that are becoming more problematic given the rising cost of living, as well as the additional expenses those with disability face in relation to their disability. 

Slater and Gordon’s findings come one month since the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability released its final report on 2 Novermber, which highlighted widespread wage theft from firms hiring workers with disability.

Current reform proposals would see wage theft becoming a criminal offence, prevent employers from paying labour hire employees lower rates of pay than their direct employees, and allow the Fair Work Commission to ensure gig economy workers receive added workplace protections. 

The reforms would also provide greater protection from discrimination for employees who experience family and domestic violence, and make it easier for casual employees to choose to move to permanent employment. 

“The statistics emerging from the Disability Royal Commission of the rates of violence, abuse, and neglect of disabled people in Australia are shocking, and it’s time that family and domestic violence was recognised as a protected attribute in anti-discrimination legislation,” said Grey.

“Stable and secure employment benefits both employees and employers. Employers who underpay workers should be made to pay civil penalties proportionate to the amount of the underpayment.”

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