Victoria Introduces Sick Pay Guarantee

Victorians who work in casual or other insecure jobs will no longer be forced to choose between a day’s pay and looking after their health, thanks to the Andrews Labor Government’s Victorian Sick Pay Guarantee. An Australian-first, the $245.6 million scheme will transform casual and contract work in Victoria by providing vulnerable workers the safety net they need to take time off when they‘re sick or need to care for loved ones. Before the pandemic, many casual and contract workers were forced to choose between a day‘s pay or their health. Around one in five casual and contract workers work more than one job to earn a living – many without access to sick and carer’s pay.
“When people have nothing to fall back on, they make a choice between the safety of their workmates and feeding their family. The ultimate decision they make isn’t wrong – what’s wrong is they’re forced to make it at all.” Premier Daniel Andrews commented “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.”
“We need every worker for the recovery of our economy – the best way to do that is through secure work. This scheme will protect more Victorians and give them the support they need when they’re sick or caring for a loved one.” Minister for Workplace Safety Ingrid Stitt commented.
The Shop, Distributive and Allied Employees’ Association (SDA) have applauded the Andrews Government’s launch of the Sick Pay Guarantee scheme for casual and contract workers.
“Congratulations to the Victorian Government on introducing this innovative scheme to provide paid leave to casuals. Not only is it beneficial to casuals who face insecure employment, it is beneficial to their fellow workers, as casuals who stay home when sick are not infecting other workers. It is also beneficial to the community as it will reduce the risk of the spreading of illness and disease.” Michael Donovan, Victorian Secretary of the SDA commented “This is an important first step. But we need the Federal Government to step up to the mark and provide paid sick leave for casuals under the National Employment Standards.”
Mr. Donovan said that this is a case where a good and responsible Government has stepped up where the Commonwealth and many employers have failed to do so. For many casual workers, one shift can mean the difference between being able to put food on the table or affording this month’s rent. The scheme which guarantees five days leave paid at minimum wage will go a long way to supporting the financial security of some of Victoria’s most vulnerable workers.
“The last two years have shown just how difficult it can get when you are a casual worker so I cannot stress enough how important a scheme like this is for us. A lot us don’t choose to be casual, so it’s just wrong that we are forced to choose between the safety of those we work with and being able to pay bills. I’m lucky that I get to live at home while I study, but I work with other casuals who don’t have that safety net and this scheme makes all the difference.” Ciaran O’Dwyer, SDA member and young supermarket worker commented.
Mr Donovan said that casuals haven’t always been without some form of paid leave entitlements. Up until 2010, casuals in Victoria working regular shifts in the retail sector were entitled to paid sick leave. Donovan explained that This entitlement should never have been withdrawn and may well have contributed to the increasing casualisation of Australia’s workforce, a development which has not only left many lower-paid workers in increasingly precarious employment but has also contributed to the significant spread of transmissible viruses like the Flu and COVID-19.
Mr Donovan said that the disadvantages of being a casual exceed the extra they earn per hour. Aside from not receiving paid leave entitlements, casual workers are also subjected to unpredictable working hours, unpredictable earnings and dismissal from work without notice as well as difficulties accessing credit or mortgages.




Premier Andrews said that workers are now able to register for the two-year pilot program, and it is anticipated that more than 150,000 workers will be eligible in this first phase. Eligible casual and contract workers in certain occupations will receive up to five days a year of sick or carer’s pay at the national minimum wage. The Premier explained that Occupations included in the first phase include hospitality workers, food trades workers and preparation assistants such as chefs and kitchen hands, supermarket and supply chain workers, retail and sales assistants, aged and disability care workers, cleaners and laundry workers and security guards.
Minister Stitt said that the Labor Government is fully funding the scheme over the first two years, which is expected to demonstrate a reduction in workplace injuries and illness, general productivity improvements from healthier workers, and lower staff turnover rates. The Government will also administer the program directly to workers, minimising the impost on businesses so they can focus on economic recovery. The Minister explained that the Victorian Sick Pay Guarantee builds on the temporary measures implemented during the pandemic, including the COVID-19 Worker Support Payment (now the Australian Government’s Pandemic Leave Disaster Payment) and the COVID-19 Test Isolation Payment.
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