Fair Work Amendment (Small Business-Penalty Rates Exemption) Bill 2012

Navigation: Previous Page | Contents | Next Page

Fair Work Amendment (Small Business-Penalty Rates Exemption) Bill 2012

Introduced into the Senate on 16 August 2012
By: Senator Xenophon

Committee view

1.2        The committee seeks  further information from Senator Xenophon on the following matters before forming a view whether the bill is compatible with human rights as defined in the Human Rights (Parliamentary Scrutiny) Act 2011:

1.3        The committee also seeks clarification as to how the bill engages the right to form and join trade unions in article 8(1)(a) of International Covenant on Economic, Social and Cultural Rights ICESCR, as claimed in the statement of compatibility.

Purpose of the bill          

1.4        The bill amends the Fair Work Act 2009 to exclude employers in the restaurant and catering or retail industries that employ fewer than 20 full-time equivalent staff from being required to pay penalty rates under an existing or future modern award unless an employee has worked more than ten hours in a 24-hour period or more than 38 hours in a week.

Compatibility with human rights

Right to work and rights in work (Article 6(1) and article 7 ICESCR)
Right to equality and non-discrimination (Article 2(2) ICESCR and article 26 ICCPR)

1.5        The statement of compatibility states that the bill engages the right to work and rights in work, in particular the right to earn a fair wage and equal remuneration for work of equal value. These rights are contained in articles 6 and 7 of the ICESCR.  The statement also mentions article 8(1)(a) of the ICESCR, which guarantees the right to form and join trade unions, but does not explain how the bill engages this right.

1.6        The statement of compatibility claims that the bill does not limit the right of individuals to earn fair wages or equal remuneration because it only affects the circumstances in which certain employers will be required to pay penalties above the base wage.

1.7        The committee observes that the bill arguably raises a prima facie issue of discrimination because the amendments differentiate between particular groups of employees – ie, certain employees will be treated less favourably than other employees in a similar situation on the basis of the size of the workplace in which they are employed.  The amendments would also appear to differentiate between particular groups of employers on a similar basis.

1.8        The right to non-discrimination is protected in Article 2(2) of the ICESCR, which prohibits discrimination on prohibited grounds in the exercise of the economic, social and cultural rights guaranteed in the Covenant. In addition article 26 of the International Covenant on Civil and Political Rights (ICCPR) contains an independent guarantee of equal protection of the law. Article 26 of the ICCPR prohibits discrimination in law or in practice in any field regulated by public authorities.  This means that when the Commonwealth legislates in any particular area, it must do so without discriminating on the prohibited grounds.  Article 26 of the ICCPR is a ‘free-standing’ bar on discrimination and is not limited to the ICCPR rights.

1.9        Discrimination means any distinction, exclusion, restriction or preference or other differential treatment that is directly or indirectly based on the prohibited grounds of discrimination and which has the intention or effect of nullifying or impairing the recognition, enjoyment or exercise, on an equal footing, of all rights and freedoms.

1.10      The grounds of prohibited discrimination are not closed, and include race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. The UN Human Rights Committee (HRC) has not issued any specific guidance on the meaning of ‘other status', preferring instead to treat it on a case by case basis.  It has nevertheless indicated that a clearly definable group of people linked by their common status is likely to fall within the category of 'other status'.  Among other things, the HRC has found age to qualify as prohibited grounds under ‘other status’.

1.11      A difference in treatment on prohibited grounds, however, will not be directly or indirectly discriminatory provided that it is:

1.12      The committee is seeking further information from Senator Xenophon on these matters before forming a view on the bill's compatibility with human rights.

Navigation: Previous Page | Contents | Next Page