Melbourne Law School - Research Publications

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    Criminal Liability for "Wage Theft": A Regulatory Panacea?
    Hardy, T ; Howe, J ; Kennedy, M (Monash University, 2021)
    In response to concerns over the growing problem of ‘wage theft’, the federal government, as well as various state governments, have committed to introducing criminal sanctions for underpayment contraventions. While policymakers and the public have largely assumed that criminal sanctions will address a perceived deterrence gap and promote employer compliance with basic employment standards, there has been far less scholarly appraisal of how this regulatory shift might shape enforcement decisions and affect compliance outcomes. Drawing on literature from criminology, as well as regulation and governance, this article evaluates a range of conceptual justifications put forward in support of criminalising certain forms of wage theft. It also considers key practical issues which may arise in a dual track system where both criminal and civil sanctions are available for the same or similar contraventions. This article concludes with some suggestions on how criminal offences might be framed in the federal system so as to optimise employer compliance and reduce regulatory tensions.
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    The (Omni)bus that Broke Down: Changes to Casual Employment and the Remnants of the Coalition’s Industrial Relations Agenda
    Hardy, T ; Stewart, A ; McCrystal, S ; Munton, JR ; Orifici, A (LexisNexis Australia, 2021)
    The Morrison Government saw the COVID-19 crisis as an opportunity to reset the debate over Australia’s industrial relations system. Its ‘Omnibus Bill’ was the product of an unusually constructive process of dialogue with the labour movement. Yet the reforms it proposed to the Fair Work regime largely reflected both its own and employer groups’ previous concerns. Having abandoned tripartism, it encountered familiar resistance in the Senate. After a chaotic debate, the version which passed as the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Act 2021 (Cth) dealt only with the topic of casual employment. We examine the changes made on this important issue, which have replaced one set of problems with another. We also outline the proposals (including on award flexibilities, enterprise agreements, and compliance and enforcement) jettisoned by the government from the original Bill, some of which could easily have been enacted. We assess where all this leaves the Liberal/National Coalition’s reform agenda and lament what we see as a missed opportunity to address pressing problems in the labour market.
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    Filling the Void? A Critical Analysis of Competition Regulation of Collective Bargaining Amongst Non-employees
    Mccrystal, S ; Hardy, T (KLUWER LAW INT, 2021-12)
    The rise of the gig economy, and the expansion of self-employment more generally, have magnified pre-existing concerns about how to address the risk of exploitation of non-employees, including franchisees, freelance journalists and owner-driver transport workers, amongst others. In a bid to fill relevant regulatory gaps, and correct destructive power imbalances, many are turning their attention to the power and potential of collective bargaining.
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    Digging Into Deterrence: An Examination of Deterrence-Based Theories and Evidence in Employment Standards Enforcement
    Hardy, T (Kluwer Law International, 2021-06-01)
    In a bid to curb employer non-compliance with wage and hour regulation, policy-makers across many different jurisdictions are seeking to deliver greater doses of deterrence. This trend stems from a series of common assumptions. In particular, it is often assumed that introducing stiffer sanctions, such as criminal penalties for wage theft, will automatically amplify the relevant deterrence effects. This article seeks to unpack these assumptions to better understand: a) how deterrence is conceptualized and understood in the context of wage underpayment; and b) which tools or approaches are likely to be most powerful in enhancing deterrence and promoting compliance. Drawing on recent developments in Australia, the article argues that alternatives to enforcement litigation – such as voluntary agreements or undertakings – may hold critical, albeit under-appreciated, deterrence value. This analysis also reveals that the perceived risk of detection, the speediness of the relevant sanction and the publicity it ultimately generates may all serve to heighten deterrence in ways that encourage and entrench employer compliance with wage and hour laws.
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    Emerging Business Models and the Evolving Regulatory Response: Perspectives from Australia and Beyond
    Hardy, T ; Johnstone, R ; Howe, J (LexisNexis Australia, 2019)
    This Special Issue contains a selection of articles presented at a workshop, ‘Emerging Business Models and the Evolving Regulatory Response: Perspectives from Australia and Beyond’. This workshop brought together a group of scholars, policymakers and graduate students actively working on, or otherwise interested in, the broad themes of labour and employment regulation and enforcement. The workshop was held in July 2018, with the generous support of the Centre for Employment and Labour Relations Law at the University of Melbourne.
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    Left Out in the Cold: Homelessness and Anti-Discrimination Law
    Hardy, T (Council of Homeless Persons, 2005)
    Anti-discrimination legislation has long been accepted as an integral part of Australian law and culture. However, the current legal framework at both Commonwealth and State levels fails to adequately protect people who are homeless, unemployed or in receipt of social security benefits. (1) This omission in the law masks the fact that discrimination against these groups is deeply ingrained and currently lawful. Not only does this seem to indicate a lack of awareness on the part of the legislature, it also seems to demonstrate ignorance of the fact that homeless people, although impoverished, possess basic human rights.
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    Mandate, Discretion, and Professionalisation in an Employment Standards Enforcement Agency: An Antipodean Experience
    Howe, J ; Hardy, T ; Cooney, S (Wiley - John Wiley & Sons, 2013)
    In recent years, there has been a resurgence of scholarly interest in the operation and effect of labour inspectorates around the world. This article aims to contribute to this mounting comparative and socio-legal literature by considering the emergence of an active and high-profile enforcement agency in Australia—the Fair Work Ombudsman (FWO). Drawing on the experiences of inspectors and senior managers at the FWO, we examine the structure and mandate of the agency, as well as the discretion afforded to, and the professionalisation of, individual inspectors. While some have sought to draw a distinction between a rule-bound, specialised approach characteristic of certain Anglo-American countries and the so-called Franco-Iberian model, which places a greater emphasis on flexibility and pragmatism, we found that the FWO does not necessarily fit neatly within this dichotomy. Rather, we observe that as the FWO is a new institution, its mode of operation is in the process of evolution. At present it is pluralistic, in the sense that it exhibits a hierarchical, procedural approach in a drive to address concerns of consistency and accountability, while at the same time allowing, and sometimes encouraging, individuals to be experimental and adaptive.
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    Accountability and the Fair Work Ombudsman
    Hardy, T ; Howe, J (Thomson Reuters, 2011)
    The importance of accountability has long been sheeted home to the Office of the Fair Work Ombudsman (FWO), the federal statutory agency responsible for enforcement of minimum employment standards under the Fair Work Act 2009 (Cth). In the immediate aftermath of Work Choices, the activities of the regulator were mired in controversy. In particular, the agency’s involvement in a number of high profile and hotly contested cases led to accusations that one of its predecessor agencies, the Office of Workplace Services (OWS), was politically motivated and acting as the Howard Coalition Government’s “secret police”. In light of the agency’s rather harrowing experiences in the wake of Work Choices, it is not surprising that the FWO now places a heavy emphasis on the importance of independence, transparency and accountability. Drawing on an extended concept of accountability, this article will undertake a preliminary assessment of the various accountability mechanisms which currently apply to the FWO and question whether these checks are adequate to guard against the criticisms previously levelled at the organisation.
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    Enrolling Non-State Actors to Improve Compliance with Minimum Employment Standards
    Hardy, T (Sage Publications, 2011)
    While the extent of employer non-compliance with minimum employment standards has yet to be decisively determined in Australia, there is evidence to suggest that it is both prevalent and persistent. This article draws on the scholarship emerging from the regulatory studies field to explore the underlying impulses and issues that may have led to this compliance gap. It considers how a more pluralistic and decentred understanding of regulation may improve compliance. This understanding is then applied to examine the various ways in which the federal labour inspectorate — the Fair Work Ombudsman — has sought to supplement and strengthen its existing compliance and enforcement mechanisms by harnessing or ‘enrolling’ non-state stakeholders, such as employer associations, trade unions, top-level firms and key individuals.
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    Less Energetic but More Enlightened? Exploring the Fair Work Ombudsman's Use of Litigation in Regulatory Enforcement
    Hardy, T ; Howe, J ; Cooney, S (The University of Sydney Law School, 2013)
    Since early 2006, the federal labour inspectorate, now known as the Fair Work Ombudsman ('FWO'), has been both active and innovative in promoting and enforcing employment standards. While various enforcement tools are available to the FWO, civil remedy litigation has been an especially visible aspect of the agency's compliance activities. This article surveys the litigation activities of the federal labour inspectorate from I July 2006 to 30 June 2012. We explore the extent to which litigation has fluctuated over the past six years; the types of contraventions that have been pursued; the characteristics of respondents; and any patterns in remedies and outcomes. We consider the extent to which the FWO's changing approach to litigation reflects influential approaches to regulatory enforcement, including responsive regulation and strategic enforcement. Our assessment of the data suggests that the FWO has made increasing use of civil remedy litigation and the deterrence effects of this intervention have been amplified through prominent use of media. While the agency has become bolder in its use of litigation by targeting a wider range of individuals and entities, there is still some room to seek alternative court sanctions in order to achieve greater deterrence and more sustainable compliance behaviour.