Remember all the chatter this time last year about the Same Job, Same Pay legislation? Well, we’ve now hit the one-year anniversary since these laws came into force in November 2024, and it’s been quite the ride for Australian businesses. Let’s take a look at what’s actually happened, what it means for your business, and some eye-opening cases that have set the precedent for everyone else.
The Quick Recap: What Are These Laws Again?
In case you need a refresher, the Same Job, Same Pay laws were designed to close the loopholes that allowed businesses to pay labour hire workers less than their permanent counterparts doing exactly the same work. The legislation gives the Fair Work Commission (FWC) the power to order labour hire companies to pay their workers the same rates as employees covered by the host employer’s enterprise agreement.
The basic requirements? Your business is affected if you have 15 or more employees, are covered by an enterprise agreement, and use labour hire workers who’ve been with you for more than three months.
By The Numbers: Real Impact on Real Businesses
Twelve months in, we’re seeing some significant changes across various industries. Here’s what’s been happening in the real world:
Mining Sector Shakeup
The mining industry has felt the biggest impact. In July 2025, BHP’s Queensland operations saw approximately 2,200 labour hire workers receive an average pay increase of $30,000 per year. That’s not a typo. At South32’s Cannington mine in Queensland, haul truck drivers saw their wages jump by 60% – from $45 per hour to $75 per hour.
Aviation Adjustments
Qantas has been feeling the pinch too. Around 760 cabin crew members employed through labour hire arrangements have received significant pay increases following settlements reached in March 2025. The airline is facing a $60 million cost just for the 2025 financial year from these changes alone.
Other Industries Following Suit
It’s not just mining and aviation. Queensland meatworks have seen labour hire workers receive 25% pay increases, while Kmart’s Lytton distribution centre implemented $8-$12 per hour increases for casual warehouse staff. We’re seeing applications across warehousing, meat processing, and various other sectors.
The Case That Changed Everything
One of the most fascinating developments this year has been the ruling in Ms Joanna Pascua v Doessel Group Pty Ltd. This case has major implications for how businesses structure their workforce, particularly when engaging overseas workers.
Ms Pascua was a legal aide working from the Philippines for Doessel Group, a Queensland-based credit repair law firm. The arrangement was set up as an “independent contractor” relationship, but the FWC didn’t buy it. They looked beyond the label and found that the reality of the working relationship was actually that of an employee.
Here’s what the FWC considered:
- She worked set hours determined by the employer
- She was paid at regular intervals that resembled full-time employment
- The employer controlled how and when the work was performed
- She couldn’t subcontract her work to others
- She used equipment provided by the employer
The Bottom Line: Just because someone works overseas and you’ve called them a “contractor” doesn’t mean the Fair Work Act won’t apply. If the FWC determines they’re actually an employee, all the usual Australian employment obligations kick in – regardless of where they’re physically located.
This is a wake-up call for businesses trying to use creative arrangements to avoid employment obligations. The FWC and courts are looking at the substance of relationships, not just the labels you put on them.
What Businesses Are Learning
After a year of these laws in action, here are the key lessons emerging:
The “Service Contractor” Defence Is Tough to Prove
BHP tried to argue that some of their arrangements involved genuine service contractors rather than labour hire, but the FWC wasn’t convinced. The Commission looks at who actually controls the work – if your “service provider’s” workers are taking direction from your supervisors, wearing your uniforms, and attending your pre-start meetings, you’re likely dealing with labour hire, not a service contract.
Compliance Costs Are Real
Beyond the wage increases themselves, businesses are dealing with significant administrative burdens. Host employers need to provide labour hire companies with detailed information about their enterprise agreement rates, allowances, and conditions. Getting this wrong isn’t just inconvenient – it could expose you to wage theft claims that could seriously damage your business.
Strategic Shifts Are Happening
Some businesses are responding by moving away from labour hire altogether and bringing workers into direct employment. Others are accelerating automation plans. The competitive landscape is shifting, with companies that relied heavily on labour hire arrangements facing proportionally greater cost pressures than their competitors.
What This Means for Your Business
If you’re in the NDIS, Trade or Allied Health sectors (where many of our clients are), you might be thinking, “Does this even affect me?” The answer depends on your specific circumstances, but here’s what you need to consider:
Check Your Enterprise Agreement Status
The laws primarily apply to businesses with enterprise agreements. If you’re operating under modern awards, the immediate impact may be less direct, but that doesn’t mean you can ignore these developments entirely.
Review Your Contractor Relationships
Remember the Pascua case? If you’re engaging contractors – especially overseas – make sure the relationship is genuinely one of contracting, not employment in disguise. The new definition of “employee” that came into effect in August 2024 focuses on the real substance of the relationship, not just what your contract says.
Consider the Broader Trend
These laws are part of a larger push toward workplace fairness and compliance. Even if you’re not directly affected now, the direction of travel is clear: regulators and courts are taking a much closer look at employment arrangements and closing loopholes.
The Uninsurable Risk
Here’s something that caught many businesses off guard: you can’t insure your way out of wage theft risks anymore. In the past, some insurers would potentially cover fines relating to wage breaches, but that’s changed. You’re on your own if you get this wrong, which makes getting proper advice and implementing robust systems more important than ever.
Looking Forward
As we move into year two of these laws, expect to see:
- More FWC decisions clarifying the boundaries of the legislation
- Additional industry sectors being scrutinised
- Continued union applications for regulated labour hire arrangement orders
- Businesses restructuring their workforce models
- Increased focus on compliance and record-keeping
There’s always the possibility that a change in government could see these laws reconsidered or repealed. But for now, compliance is the only sensible path forward.
The ASAP Approach: Stay Ahead of the Game
This is exactly why I work with my clients year-round, not just at tax time. Laws like these don’t just affect your payroll – they have implications for your business structure, your contracts, your insurance, and your overall risk profile.
If you’re using labour hire, engaging contractors (especially overseas ones), or have any questions about how these changes might affect your business, don’t wait until it becomes a problem. Let’s have a chat now and make sure you’re on the right side of these laws.
Because at the end of the day, the best compliance strategy is knowing what’s coming and being prepared for it – not dealing with it after you’ve got a Fair Work investigation on your hands.
Need help navigating these changes? That’s exactly what I’m here for. Get in touch, and let’s make sure your business is protected, compliant, and positioned for success in this changing landscape.