But questions about scheme's fund source continue to grow
The number of casual and contract workers in Victoria who have registered to the Sick Pay Guarantee has grown to 55,000 as the program nears its first year, the state government announced.
The figure has grown from the more than 30,000 recorded in July 2022, months after the programme was launched in March. Retail and sales assistants, hospitality workers, as well as aged and disability care workers make up the highest percentage of workers who have signed up.
The scheme, which is the first of its kind across the country, grants these casual and contract workers of up to 38 hours of sick and carer's pay annually, paid at the annual minimum wage.
"This scheme creates more security for Victorian casual and contract workers, supporting them when they’re sick or caring for a loved one," said Employment Minister Ben Carroll.
$19 million paid out
Victoria has supported more than 80,000 claims from Victorian workers so far, according to the government, paying out about $19 million.
The programme also covers supermarket and supply chain workers, cleaners, laundry workers, security guards, food trades workers, cooks, bakers, fast food workers, and kitchen hands.
According to the government, the programme aims to reduce workplace illnesses and injuries and helps make businesses safer and more productive.
"Workers shouldn't feel forced to go to work sick because they can't afford to miss a day's pay – that's why we're ensuring it's a choice they never have to make through our nation-leading Sick Pay Guarantee," Carroll said.
Funding concerns
Victoria's nation-leading initiative launched as a two-year pilot worth $245.7 million.
Currently, the funding comes from taxpayers' money. But concerns are mounting over where the government will find funds once the programme becomes full-fledged.
"It's not yet clear whether all businesses registered in Victoria would be required to pay a levy to cover the payments or whether individual businesses would pay a levy per casual employee. Clearly, the basis for funding the scheme needs to be well thought out to avoid penalising employers and creating a reluctance to hire casual employees,” Heather Richardson, partner and head of employment law at Kalus Kenny Intelex Lawyers, previously told HRD.
In its latest announcement, the Victoria government has yet to confirm where it will pool the fund for the scheme's future.
Carroll, however, said the government is looking into long-term solutions to fund the programme once the pilot run ends in March 2024.
"We will make all of those assessments ... at the end of the trial," Carroll said as quoted by 7News. "I don't want to pre-empt anything except to say we're at the halfway mark, the data is very strong, it's been well resourced, well-funded ... and we'll have more to say in another 12 months when the scheme gets to its final months."
