Money

Is it work experience, or exploitation?

Published

2 years ago

July 8, 2023

ticker NEWS

Unpaid work placements and internships can serve as a legitimate avenue for ambitious young individuals to gain a foothold in their desired fields.

However, it is crucial to acknowledge that they can also exploit economically vulnerable young workers. Wage theft is illegal and can result in severe penalties for employers who engage in such practices.

To distinguish between legitimate and exploitative unpaid work placements, both employers and workers need to be well-informed.

Caution must be exercised by both parties when offering or accepting unpaid work placements.

Employment guidelines

The Fair Work Act establishes minimum wages, conditions, and awards for different types of employment. The central question regarding unpaid work placements revolves around whether the tasks assigned to the worker qualify as “employment.” This determination depends on two sub-issues:

1. Intentions of the parties: Determining intentions can be challenging as they are often mixed and not fully expressed. What matters is the nature of the relationship, rather than how either party labels it.

The factors

– Purpose of the arrangement: If the primary focus is on productive work rather than meaningful learning, training, and skill development, it is likely an employment relationship.
– Duration of the arrangement: Longer durations increase the likelihood of an employment relationship.
– Nature of the work: If the tasks performed are typically done by paid employees and are necessary for the business or organization, the arrangement should likely be considered paid employment.
– Role of learning: If the worker’s role is primarily observational and does not primarily benefit the organization, it is less likely to be seen as an employment relationship.
– Benefit distribution: A legitimate unpaid work placement should primarily benefit the intern or trainee. If the business derives significant economic benefit from the work, an employment relationship is more likely.

The difference

In practice, illustrating the difference is often easier than providing a precise definition. For instance, if someone voluntarily works for a charitable organization without any expectation of payment, it is unlikely to violate the Fair Work Act.

If an unpaid job placement is part of an educational or vocational training course and aims to equip students with essential skills for transitioning from study to work, it is likely to meet the requirements of the Fair Work Act. Similarly, if an internship or training period, not connected to a formal educational program, is brief and involves extensive mentoring and training, it may also qualify.

On the other hand, if an applicant is interviewed for a paid job and then asked to undergo an unpaid “work trial” for an indefinite period to assess suitability, it would likely contravene the Fair Work Act. An unpaid internship that lacks adequate training and instruction presents similar issues.

Exercise caution

If you have been offered an unpaid work placement with hopes of it leading to a paid job, be extremely cautious. Many workers are enticed into such arrangements under false promises, appealing to their goodwill and willingness to work.

Likewise, if you are an employer considering offering unpaid work placements, be aware that many of these arrangements may not meet the requirements outlined in the Fair Work Act. The potential penalties far outweigh any short-term cost-saving benefits. Even well-intentioned organizations seeking to provide opportunities for underserved individuals can find themselves in trouble if they operate outside the legal guidelines.

More information here.

Money

Inflation rise reduces chances of Reserve Bank rate cut

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

Published

3 days ago

October 29, 2025

ticker NEWS

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

In Short:
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.

The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.

The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.

Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.

The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.

Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.

The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.

Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.

Economic Pressures

Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.

Money

Wall Street hits record highs on low inflation

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

Published

5 days ago

October 26, 2025

Ahron Young

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

In Short:
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.

U.S. stocks rose to record highs on Friday due to lower-than-expected inflation data and positive corporate earnings.The S&P 500 and Nasdaq achieved their largest weekly gains since August. The Dow saw its biggest jump from Friday to Friday since June.

The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.

Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.

Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.

This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.

The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.

Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.

Market Trends

Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.

Trading volume was 19.04 billion shares, lower than the average of the past 20 days.

Money

US stocks face tests from Tesla, Netflix earnings

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

Published

2 weeks ago

October 19, 2025

Ahron Young

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

In Short:
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.

This coming week, earnings reports from companies including Tesla and Netflix are anticipated to impact U.S. stock performance.

Investors are also awaiting delayed U.S. inflation data, which could test market stability as it remains near record highs.Recent trading activity has shown increased volatility, influenced by ongoing U.S.-China trade tensions and concerns regarding regional bank credit risks. The CBOE volatility index has seen a rise, indicating increased market uncertainty.

The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.

Market Volatility

Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.

Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.

The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.