Observation (CEACR) - adopted 2024, published 113rd ILC session (2025)

Employment Policy Convention, 1964 (No. 122) - Australia (Ratification: 1969)

The Committee notes the observations of the International Organisation of Employers (IOE), received on 30 August 2024, as well as the response from the Government, received on 12 September 2024.

Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 112th Session, June 2024)

The Committee recalls the discussion that took place in the Conference Committee on the Application of Standards (CAS), at its 112th Session in June 2024, regarding the application of the Convention. The Committee notes that, in its conclusions, the CAS requested the Government, in consultation with the employers’ and workers’ organizations, to continue to develop and implement employment policies in line with the Convention, including those aimed at increasing both the quality and quantity of jobs for women. The CAS also requested the Government to submit a report on the application of the Convention, including information on its ongoing efforts to support First Nations Peoples in the world of work, in accordance with the regular reporting cycle.

Articles 1 and 2 of the Convention. Adoption and implementation of an active employment policy. Employment trends. The Committee welcomes the detailed information provided by the Government in its report on the policies, programmes and measures implemented or envisaged on the federal and territory levels to promote full and freely chosen employment. The Committee notes that, since the last report on the Convention in 2021, significant reforms have been undertaken, including through the release in 2023 of the White Paper on Jobs and Opportunities, which sets out five key objectives: (i) delivering sustained and inclusive full employment; (ii) promoting job security and strong, sustainable wage growth; (iii) reigniting productivity growth; (iv) fulfilling skills needs and building the future work force; and (v) overcoming barriers to employment and broadening opportunity. The White Paper contains a road map for achieving these goals. The Committee also notes the launch of Workforce Australia in 2022, replacing Jobactive as Australia’s national employment service, to offer permanent digital servicing for jobseekers and tailored support for disadvantaged jobseekers. Following a 2023 report on the performance of Workforce Australia, the Government has announced additional measures in the 2024–25 budget, including the Real Jobs, Real Wages and WorkFoundations programmes, which aim to provide wage subsidies to people who are at risk of long-term unemployment and support employers who employ jobseekers facing significant barriers to employment. The Government further indicates that, following recommendations from a Parliamentary Select Committee, the ParentsNext programme will be replaced in 2024 with a new voluntary pre-employment service offering personalized support to parents of children under 6 years.

In response to the concerns raised by the Australian Council of Trade Unions (ACTU) in its 2021 observations, the Government provides detailed information on a series of reforms addressing job security, fixed-term contracts and casual work. The Government indicates that the new Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 requires the Fair Work Commission (Australia’s workplace tribunal) to consider job security when performing its functions. The Government also indicates that the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 limits the use of fixed-term contracts to two years or two consecutive contracts, whichever is shorter, unless exceptions apply. The Government further indicates that the new Closing Loopholes No. 2 Act 2024 introduces an interpretive principle requiring that the effective nature of a working relationship determines whether an individual is an “employee” or “employer” rather than the text of the employment contract alone. The Government adds that the Closing Loopholes No. 2 Act 2024 introduces an objective definition of “casual employee” and establishes a pathway for conversion to permanent employment. The Government explains that employees who have worked for at least six months (or 12 months in small businesses) may request conversion to permanent employment, with employers required to respond within 21 days, either agreeing to the conversion or providing valid reasons for refusal, such as the employee continuing to meet the definition of a casual employee or fair and reasonable operational grounds. The Government provides statistical data on casual work, indicating that the share of casual employees, after significant losses during the COVID-19 pandemic, stood at 22.4 per cent in February 2024, nearly aligning with the pre-pandemic ten-year average of 24.5 per cent.

Moreover, the Committee notes the IOE’s 2024 indication that Australian employers are of the view that Australia complies with the Convention and that it broadly supports the efforts of the Government to boost workforce participation. In this respect, the Committee also notes, however, the significant concerns expressed by the IOE about the impact of the recent reforms on casual employment, labour hire and independent contracting. According to the IOE, these reforms make it more challenging for employers to source the labour they need. The IOE also submits that flexibility is essential to boosting the workforce participation of many categories of workers, including women and young jobseekers. The Committee also notes the Government’s indication, in its response, that it remains committed to ensuring that employment policy in Australia supports a dynamic and inclusive labour market in which people have the opportunity for secure, well-paid jobs and where workers, employers and communities can thrive and adapt. The Committee observes, in this respect, that, so far, the rate of casual work in the country seems to have remained nearly identical to the pre-COVID-19 ten-year average. According to ILOSTAT, the unemployment rate in Australia remained stable at 3.7 per cent in 2023 (3.8 per cent for men and 3.6 per cent for women), compared to 3.5 per cent in 2022. Based on information from the Australian Bureau of Statistics, the Committee further notes that underemployment has also remained stable, at 6.2 per cent in October 2024, compared to 6.1 per cent in October 2022. The Committee recalls, in this respect, that it has noted the difficulty of striking the right balance between accommodating the desire for increased flexibility expressed by certain enterprises and workers, while also ensuring that all workers have the ability to exercise fundamental principles and rights at work, as well as enjoy the labour and social protections to which they are entitled (2020 General Survey on promoting employment and decent work in a changing landscape, concluding remarks, paragraph 1067(o)). The Committee has also emphasized that well-designed and regulated non-standard forms of employment can help organizations to respond in a timely manner to changing demands, and temporarily replace absent workers, and facilitate the participation of workers in the labour market, by allowing those who wish to freely choose part-time work arrangements that allow them to better reconcile work, life and family responsibilities. However, workers in these kinds of arrangements tend to be more exposed to decent work deficits, including job insecurity, lower pay, gaps in access to social protection, higher occupational safety and health risks, and limited organizing and collective bargaining power (2022 General Survey on securing decent work for nursing personnel and domestic workers, key actors in the care economy, paragraph 440).

The Committee notes with interest the measures taken by the Government since 2022 which reflect an integrated approach pursuing the overarching objective of promoting full and decent employment stated by Articles 1 and 2 of the Convention, by aiming at creating a more inclusive, secure and dynamic labour market. In view of the above, the Committee requests the Government to continue to provide detailed and updated information on the measures and policies aimed at achieving the objectives of the Convention as well as on their implementation and impact. In particular, considering that the pursuit of the objective of the Convention to achieve full, productive and freely chosen employment is not just about creating more jobs, but also about creating better and decent jobs, the Committee requests the Government to indicate whether, and to what extent, national policies and measures in the area of employment policy contribute to the reduction of insecure work, underemployment and unemployment and to boosting the workforce participation of certain categories of workers vulnerable to decent work deficits, including women and young and older persons. The Committee also requests the Government to indicate how the policies and measures described above address the issue of labour market flexibility referred to by the IOE in its observations.

Indigenous peoples. The Committee welcomes the detailed information provided by the Government on the measures taken or envisaged, on the federal and territory levels, to improve vocational education and training (VET) and employment for First Nations Australians. The Government indicates that a 2022 House Select Committee’s review of Workforce Australia employment services found the system insufficient for First Nations jobseekers and made several recommendations, which are being examined in consultation with First Nations peoples. The Government indicates that measures have already been put in place to support First Nations people within Workforce Australia, including: (i) the issuance of Indigenous Specialist Licences to provide culturally appropriate support; (ii) the immediate eligibility of First Nations individuals for wage subsidies up to 10,000 Australian dollars (approximately US$6,458) without the requirement of being with the employment services for six months prior; (iii) additional funding for the training and mentoring of First Nations jobseekers; and (iv) the upcoming Real Jobs, Real Wages programme, which will offer a tapered wage subsidy to those at risk of long-term unemployment, with First Nations peoples representing 18.6 per cent of the very long-term unemployed as of May 2024. The Government further indicates that it is supporting First Nations employment through several regionally-based initiatives, including: (i) the Broome Employment Services, which will receive 3.7 million Australian dollars in funding from 2025–26 to continue providing tailored support to approximately 840 First Nations people; (ii) the Local Jobs Programme, which has funded over 90 projects to improve job readiness for First Nations participants; and (iii) the Yarrabah Employment Service, which began as a pilot project and is now a permanent service delivering ongoing employment support through Workforce Australia, focusing on a community-driven, place-based approach. The Government adds that it supports First Nations entrepreneurship through the Self-Employment Assistance programme, which provides business training, coaching, mentoring and financial support to First Nations people. The Government reports that, between 2022–24, the Self-Employment Assistance programme engaged 257 First Nations participants in business advice sessions, 29 in business health checks, 213 in self-employment workshops, 694 in small business training, and 468 in small business coaching. The Government further reports progress under the Indigenous Procurement Policy (IPP), which promotes Indigenous entrepreneurship by setting annual procurement targets. The Government indicates that over 1,400 Indigenous businesses secured more than 12,000 contracts valued at over 1.4 billion Australian dollars in 2022–23, surpassing set targets. Additionally, the Government indicates that the Time to Work Employment Service (TWES) – the national, voluntary in-prison pre-employment service for First Nations people – will transition in 2025 to a new First Nations Prison to Employment programme, aimed at providing culturally safe, holistic pre- and post-release employment support, with an investment of 76.2 million Australian dollars announced in the 2024–25 budget. Lastly, the Government indicates that the First Nations Engagement in the Transition to Net Zero project, which commenced in 2024, aims to identify barriers and opportunities for First Nations peoples’ participation in the decarbonization workforce, with findings due for submission to the Government in 2025.

Turning to the concerns raised by ACTU in its 2021 observations regarding the low quality of the Community Development Programmes’ (CDP) jobs, the Government indicates that it has committed to replacing the CDP with the Remote Jobs and Economic Development Programme (RJED). The Government indicates that the RJED will be implemented in two stages, with the first stage beginning in 2024, aiming to create 3,000 meaningful jobs in remote communities with at least minimum wages and conditions. The second stage will introduce a new remote employment service. The Government specifies that, to ensure smooth transition, it has extended most CDP providers’ agreements until 30 June 2025.

Regarding the targets set in the 2020 National Agreement on Closing the Gap, mentioned in the Committee’s previous comment, the Government indicates that, according to a 2024 report, while the employment rate for Aboriginal and Torres Strait Islander youth has increased to 58 per cent, it is not on track to meet the 67 per cent target by 2031. In contrast, the employment rate for people aged 25–64 has improved to 55.7 per cent, showing good progress and remaining on track to meet the 62 per cent target by 2031. In view of the above,the Committee requests the Government to continue providing updated and detailed information, including statistical data, on the impact of the Government’s efforts to increase sustainable employment opportunities for First Nations Australians.

Women. The Committee notes with interest that the Government has introduced a range of national measures aimed at improving the quantity and quality of women’s employment, with a focus on equal pay, support for women balancing family obligations, and the promotion of a safe workplace. Regarding equal pay, the Committee notes that the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 introduced several amendments to the Fair Work Act 2009, including: (i) requiring the Fair Work Commission to take gender equality and job security into account when performing its functions; (ii) removing the need to establish a reliable “male comparator” in equal remuneration claims and allowing for the consideration of historical gender-based undervaluation; (iii) establishing a new expert panel within the Fair Work Commission for gender pay equity; (iv) improving bargaining access for lower-paid, feminized sectors through the creation of a supported bargaining stream to negotiate better pay and working conditions; and (v) prohibiting pay secrecy clauses in employment contracts. The Government reports that these amendments have led to significant wage increases benefiting women, including through the decisions of the Fair Work Commission to: (i) increase the national minimum wage by 8.6 per cent in 2023, the largest increase on record, which is expected to benefit low-paid, predominantly women workers; and (ii) raise wages in the aged care sector by up to 28.5 per cent, following findings of gender-based undervaluation. Regarding support for women balancing family obligations, the Government indicates that the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 made the right to request flexible work arrangements and extensions of unpaid parental leave enforceable. The Government adds that the Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023 increased access to unpaid parental leave, providing that both parents can take up to 12 months of unpaid parental leave and allowing them to take up to 100 days flexibly, including as single days. Regarding the promotion of safe workplaces, the Government indicates that: (i) the Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Act 2022 introduced a duty for employers to eliminate workplace sex discrimination and harassment; and (ii) the Fair Work Amendment (Paid Family and Domestic Violence Leave) Act 2022 introduced ten days of paid family and domestic violence leave annually. The Committee also notes that Australia ratified the Violence and Harassment Convention (No. 190), on 9 June 2023. The Government provides information on the measures taken at the territory level to improve the quantity and quality of jobs for women, including career support programmes, funding for women in male-dominated industries, and leadership initiatives. The Committee requests the Government to continue to provide information on policies aimed at improving both the quantity and quality of women’s employment, as well as information, including statistical data, on their impact on women’s employment in practice.

Article 3. Consultations with the persons affected, in particular representatives of employers and workers. The Committee notes the detailed information provided by the Government regarding consultations held at the federal and territory levels with representatives of the persons affected by the measures to be taken, and in particular representatives of employers and workers. The Government highlights that it organized a Jobs and Skills Summit in 2022, which brought together representatives of employers, workers, civil society and the Government, leading to the White Paper on Jobs and Opportunities that lays out the Government’s vision for employment in Australia. The Government also indicates that it consults social partners through regular sectoral and industry forums, such as the National Construction Industry Forum. The Government further specifies that stakeholders, including social partners, were consulted in the recent design of the new voluntary pre-employment service for parents, the WorkFoundations programme, and the new First Nations Prison to Employment Programme. Moreover, the Government reports conducting a public consultation on the development of a new disability employment model, and engaging with stakeholders – including workers with disabilities, employers, service providers and academics – through submissions and meetings. The Government further indicates that, through the Youth Advisory Group, it is consulting young people aged 16–25 on youth employment policies and programmes. Finally, the Government indicates that a new First Nations Reference Group was established in 2024 to oversee and advise on the design and implementation of the new RJED. The Committee requests the Government to continue to provide information on the manner in which it associates the persons affected by the measures to be taken, in particular representatives of employers and workers, in designing, implementing and monitoring the employment policies at the federal and territory levels.

The Committee is raising other matters in a request addressed directly to the Government.