The Australian Retailers Association (ARA) suggests that the Victorian Government's sick pay guarantee pilot program raises questions for businesses employing casual staff.
The $245.6 million two-year pilot program is an Australian-first and offers casual and insecure workers five days a year of sick or carer's pay at the national minimum wage.
The Labor Government will fully fund the scheme over the first two years and will administer the payment directly to the workers, similar to how it rolled out the COVID-19 Worker Support Payment (now the Australian Government’s Pandemic Leave Disaster Payment) and the COVID-19 Test Isolation Payment.
The government expects the scheme to demonstrate a reduction in workplace injuries and illness, general productivity improvements from healthier workers, and lower staff turnover rates.
Victorian Premier Daniel Andrews said the scheme comes after the pandemic showed how difficult it is for casual workers to take sick leave.
"When people have nothing to fall back on, they make a choice between the safety of their workmates and feeding their family," he said.
"The ultimate decision they make isn’t wrong – what's wrong is they're forced to make it at all.
"The last two years have shown just how difficult that choice can be for casual workers – so we’re doing what we can to make sure it’s a choice they don’t have to make," he said.
The first phase of the program is open to occupations including retail and sales assistants, hospitality workers, food trades workers and preparation assistants, supermarket and supply chain workers and aged and disability care workers.
It is anticipated that more than 150,000 workers will be eligible for the scheme in the first phase.
However, the ARA's concerns come into play when looking beyond the initial phase of the program, ARA CEO Paul Zahra said.
"We acknowledge the Victorian Government’s efforts to provide support to workers who are unwell.
"However, we are concerned about the ongoing funding of the scheme beyond the two-year pilot, with no details provided about the government’s plans," he said.
Zahra adds that the additional payment alongside a casual's loading may keep the team member from transitioning to full-time work.
"Casuals already receive a loading paid by employers to cover sick leave and holiday pay," he said.
"This additional payment could dis-incentivise workers to take the step towards permanent employment – which is the ultimate aim of many employers, particularly in a skills crisis like the one we are currently experiencing.
"It may, unfortunately, also encourage more absenteeism which was a huge challenge through the JobKeeper stage of the pandemic that employers had to contend with," he said.
The ARA states it is seeking further information from the Victorian Government and wants to ensure genuine industry consultation.