Amendments that threatened to weaken a bill to protect vulnerable workers from underpayment and exploitation were under "delicate" negotiation on Tuesday night.
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Fels: '7-11 still don't get it'
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Employment Minister Michaelia Cash proposed amendments to clarify technical legal aspects of the legislation while Liberal senator David Leyonhjelm and former Liberal Party senator Cory Bernardi pushed amendments that threatened to water it down.
While the two senators tried to narrow the scope of the liability of franchisors for the conduct of franchisees, who underpaid their staff, Labor and the Greens proposed amendments to expand that liability.
Senator Leyonhjelm said it was clear 7-Eleven head office was responsible for the business model that led to franchisees underpaying staff. However, it was not so clear in the case of other businesses that needed greater protection.
He said his amendments would help ensure franchisors were not held accountable unless they were genuinely responsible for the conduct of franchisees.
"The bill runs the risk, as it is drafted, of making franchisors liable for the misbehaviour of franchisees even when the franchisor really wasn't in a position to do anything about it," Senator Leyonhjelm said.
"What I am trying to do is ensure that the franchisor is only held accountable for misbehaviour when they are genuinely responsible for it.
"Where the franchisee has to comply with what the franchisor says, particularly in relation to the payment of workers, then ... I am happy the franchisor should be held liable for that.
Fairfax Media understands it is unlikely the federal government would support the Leyonhjelm/Bernardi amendments because they would dilute the bill. However, the government is said to be in "delicate" negotiations to ensure its bill would be passed.
The Labor Party and Greens were also opposed to the Leyonhjelm/Bernardi amendments.
Employment spokesman Adam Bandt said the attempt by the two conservative senators to narrow the liability of franchisors and "to weaken workers' rights is nothing new".
The bill should put more responsibility on head offices.
The Greens' Adam Bandt
"The bill should put more responsibility on head offices, not give franchisors more ways to wriggle out of legal liability," Mr Bandt said.
The Greens also supported Labor's proposed amendments to the Fair Work Ombudsman's powers to demand evidence. Mr Bandt said he was concerned the government may be giving the Fair Work Ombudsman unchecked coercive powers, including in relation to matters unconnected with protecting vulnerable workers.
Labor also proposed reversing the onus of proof from employees having to prove underpayment to employers having to provide evidence of correct payment. It also proposed extending the reach of the bill to make franchisors liable for underpayment by labour hire companies.
Labor's employment spokesman Brendan O'Connor said the vulnerable workers legislation was "seriously deficient and manifestly inadequate".
"If the government does not support Labor's amendments they will be exposed and will fail to stop workers being ripped off," he said.
The federal government's amendments aimed to clarify technical aspects of the legislation including the application of accessory provisions to franchisors with significant influence or control over their franchisees.
This amendment reflects recommendation of a senate committee report.
The amendments also clarify that "deliberate" underpayment means a deliberate breach of a payment provision in the Fair Work Act.
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