Yahoo Finance Work from home warning: Multi-millionaire tells Aussies 'they can be outsourced'
Indian investor Iqbal Singh said remote roles could be outsourced for just 10 per cent of the cost.
A multi-millionaire investor has warned Aussies refusing to return to the office that their jobs can “absolutely” be replaced by Indian workers for a fraction of the cost.
Iqbal Singh, founder of financial advisory firm Innovative Consultants, said outsourcing to overseas workers could create “more efficiency as well as a lower cost”, which he estimates to be around 10 to 15 per cent of current costs.
“Support staff, IT, finance, mortgages, all of those can be supported because of a lower-cost and, at the same time, English-speaking workforce,” Singh told news.com.au.
Do you have a story to share? Contact tamika.seeto@yahooinc.com
Singh believes offshoring roles to India is “one of the largest opportunities” for companies battling inflation.
Australia’s annual inflation rate fell to 5.4 per cent in the September quarter, down from 6 per cent in the June quarter and the recent peak of 7.8 per cent in the December 2022 quarter.
“It becomes of paramount importance in these kinds of environments to become more efficient, to make the supply chain more efficient and, at the same time, relying on those jobs which can be completely outsourced in a very cost-effective manner,” Singh said.
As for remote roles, Singh said: “Absolutely they can be outsourced”.
RELATED
Job for $100k with no experience: Australia's 'highest paid internship' applications close soon
Multi-millionaire Tim Gurner on fallout from 'damaging' rant and 7-minute rebirth
Bosses plan to pay WFH staff less
One in three Aussie employers say they are planning to pay staff who work from home less than their in-office counterparts.
Around 38 per cent of Aussie employers expect remote working will become a privilege that can be earned through trust and seniority, a global survey by Herbert Smith Freehills found.
Meanwhile, 37 per cent said they were planning to differentiate pay between remote and in-office staff in the next three to five years.
Herbert Smith Freehills partner Natalie Gaspar said employers were now using both soft and hard tactics to get workers back into the office, including team lunches in the office or telling staff to be in the office on certain days.
“There’s only a handful of organisations mandating a full return to the workplace,” Gaspar said.
Can workers be forced to return to the office?
The short answer is yes and you could potentially be fired if you don’t.
There is a term implied in every employee’s contract requiring them to follow the “lawful and reasonable” directions of their employer, McCabes Lawyers principal Tim McDonald recently told Yahoo Finance.
This is implied unless your contact or applicant work instrument, such as a modern award, expressly says otherwise.
“A direction to return to the office will be lawful and reasonable except in extreme cases - for example, where it is contrary to a government directive or another law,” McDonald said.
There are some “very exceptional” cases where employees can refuse. For example, if you can perform your job at home and have a legitimate reason to do so - such as an underlying health condition - you may be able to argue returning to the office is not reasonable.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.
