Bosses face tougher rules to deter wage-subsidy rorts

Date published : 4  January  2012 

By Patricia Karvelas

From: The Australian

January 04, 2012 12:00AM

THE Gillard government has beefed-up protections against the abuse of its new wage subsidy for the long-term unemployed after fears were raised the scheme that started this month would be ripped off by unscrupulous bosses.

Employers will be paid subsidies at the average rate of the dole for six months to hire 10,000 long-term unemployed people.

The Department of Education, Employment and Workplace Relations says tough new conditions have been imposed to police the new scheme, and job agencies must immediately report when a boss sacks a worker as soon as the subsidy expires.

Employment Participation Minister Kate Ellis said wage subsidies had been an effective feature of employment participation systems in Australia and around the world for years.

"The government has safeguards in place to ensure that these wage subsidies are most effectively used to transform the lives of the long-term unemployed," she said.

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