Legal Issues - Group Assignment

Question 1: Discuss the legal issues in the following article.

Business has been thrown a lifeline after the High Court granted leave to challenge a ruling that could leave employers on the hook for billions of dollars in unpaid leave entitlements for regular casuals.
The High Court granted special leave to appeal the WorkPac v Rossato decision on Thursday following intervention in support of employers from Attorney-General Christian Porter, who argued it could place a backpay burden on business of up to $39 billion (https://www.afr.com/policy/economy/casual-work-test-case-now-an-economic-time-bomb-20200521-p54v90) .

Attorney-General Christian Porter has said the ruling has caused confusion to businesses already struggling with the coronavirus crisis.
The decision against labour hire firm WorkPac was a big victory for unions as it held casuals who worked regular and predictable shifts were owed permanent employee entitlements, such as annual leave, and their 25 per cent loading could not offset this liability.
Australian Mines and Metals Association chief executive Steve Knott said the appeal "will be one of the most important employment law decisions that the High Court has had to consider".
"The precedent set by the Federal Court in both the Rossato and Skene decisions overturned decades of common understanding about casual employment and suggested casuals could have two bites of the cherry – higher hourly pay rates and entitlements reserved for permanent employees," he said.

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In the 2018 Skene decision, the Construction, Forestry, Maritime, Mining and Energy Union successfully argued a casual miner who had regular and predictable shifts was entitled to permanent employee benefits.
On Thursday, the CFMEU said the appeal would "unfairly delay justice for mine workers" who were owed compensation.
CFMEU mining president Tony Maher said the Federal Court had "twice confirmed that the widespread 'permanent casual' rort in mining is not only unfair, it is also unlawful".

"The model embraced enthusiastically by big mining and labour hire companies is to replace good permanent jobs with lower-paid casual jobs and it's a straight-out scam," he said.
'Hysterical' claims
"Casual mine workers do the same work on the same rosters, but they are paid about 30 per cent less and have no job security or leave entitlements."
Mr Maher said employers had made "hysterical claims about the cost to business" but argued "this toxic employment practice also comes at a staggering cost to workers, families and communities".
Australian Chamber of Commerce and Industry chief executive James Pearson said the decision to grant leave to appeal was a relief for businesses "in the fight against double-dipping claims".
"The Federal Court's decision exposed many businesses to the possibility of having to pay casuals twice for leave, placing both the jobs of more than a million casual employees into doubt and exposing employers to more than $14 billion in backpay claims."
Australian Industry Group chief executive Innes Willox said at least eight class actions used the decision to pursue claims against employers.
Mr Porter said the Rossato decision "has caused confusion and uncertainty for employers and their employees ... during a period where businesses are facing their greatest ever challenge as a result of the COVID-19 pandemic".
He said the government was primarily making arguments about how the court should take into account casual loading to offset their leave entitlements.
The Morrison government will introduce legislation next month to strengthen the rights of regular casuals to convert to permanent but has held off directly addressing the judgment pending an appeal.
The appeal will be heard in 2021 but a decision may not be handed down until late in the year.