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The Labour Government in Australia has recently introduced the "Closing Loopholes Bill" that is meant to solve "issues" related to the abuse of Casual Employment and at the same time address long standing issues related to the Gig Worker Economy.
The changes is expected to have a huge impact on the hospitality and restaurant sector in Australia which relies heavily on casual employment.
The government admits that changes proposed will increases cost of labour significantly, making it harder to employ casual employees. Furthermore, the Bill forces gig platforms like Ubereats, Doordash and even Menulog to raise the minimum pay of delivery contractors and provide employee-like benefits such as annual leave, sick leave and superannuation.
Over the last couple of months (August ~ September 2023), the AFR has been publishing articles related to the controversial Industrial Relations Bill, almost on a daily basis.
It is understood that the Bill, if passed, will be implemented from July 2024.
END OF RESTAURANT & HOSPITALITY CASUAL EMPLOYMENT
Under the new proposed changes, an employee is only considered "casual" if there's no advance commitment to the job on an ongoing basis (i.e. if any employee is rostered shifts on a regular weekly basis, that's not a casual employee, but a permanent employee). Even if there are no rosters, if the same casual employee is turning up every week, then he or she is a permanent employee.
IMPLICATIONS FOR LABOUR HIRE IN HOSPITALITY & RESTAURANTS
In short, high labour costs. For permanent employees, the employer has to pay superannuation, sick leave, annual leave and insurance. On top of that, there is the burden of extra employee administrative work such as tax withholding, payroll and more. For employees who have been using "casuals", there is a high risk of back claims for underpayment.
OUR THOUGHTS
Restaurants will gradually use less casual employees and turn to gig platforms to satisfy their needs. While costs of gig platforms may rise as well, restaurants do not need to commit to an employee-employer relationship and bear the burden of administration and fixed overheads.
ABOUT DELIVERY TASKER
DeliveryTasker is a delivery driver platform where restaurant owners can hire food or pizza delivery contractors for 2 hours or more, paying them a combination of hourly rate plus a small delivery fee, to deliver just for the restaurant.
DeliveryTasker is frequently used by restaurant owners who choose the self-delivery options on Ubereats, Menulog and Doordash to reduce their commissions by over 50%.
Restaurant owners typically hire their own food and pizza delivery contractors to give them more control over their delivery times, improving customer satisfaction.
By taking advantage of the high delivery order volumes from third-party delivery apps like Ubereats, Menulog and Doordash, restaurant owners can hire a delivery contractor on an hourly rate to run orders for their own online ordering website, phone orders and orders from Ubereats, Menulog and Doordash. This helps to spread the hourly delivery cost across more orders, keeping cost per delivery low.
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