Businesses argue against covering the cost of 10 days’ paid domestic violence leave

The Lucas hospitality empire is among the businesses arguing against a new type of leave for workers.

Already “overwhelmed” small businesses shouldn’t have to shoulder the cost of domestic violence leave, an inquiry has been told.

The Albanese government has introduced legislation to parliament that would provide about 11 million workers, including casuals, access to 10 days’ paid leave if they are experiencing family or domestic violence.

The Lucas hospitality empire behind Chin Chin and other well-known restaurants is arguing that small businesses are too stretched to be able to cover the scheme.

Lucas Restaurants human resources director Shaun McDonald was among the industry representatives to give evidence to a Senate inquiry into the government’s Bill on Monday.

Mr McDonald said he was concerned that the scheme would include casual employees given they were paid a higher base rate than permanent employees.

“If business has to pay for that 10 days, you then also have to pay another casual employee to cover that time off, which again is another 10 days of paying the base rate plus the loadings and the other provisions,” he told the inquiry.

“The hospitality industry and small businesses in general we can’t afford … to pay that.”

Anthony Albanese promised to enshrine 10 days’ paid domestic and violence leave in the national employment standards. Picture: Gaye Gerard / NCA Newswire

Mr McDonald suggested the federal government could subsidise the cost in a similar way to paid parental leave.

“I think we all agree that paid family and domestic violence is what we need to do to support the community,” he told the inquiry.

“The question really comes down to: from a business perspective, how is it sustainable for small businesses to accommodate that cost?”

Aesthetic Beauty Industry Council chief executive officer Stefanie Milla said the cost would be a “big burden” on employers.

“It’s a very complex issue and only a small amount of it’s taken into consideration,” she told the inquiry.

Australian Hairdressing Council chief executive officer Sandy Chong agreed.

Ms Chong also raised concerns about the safety of employees having to report their situation to an employer in order to access the domestic violence leave.

“What if it’s an all male workplace and you’re the only female and you go to your male employer?” she told the inquiry.

The government’s scheme will include nearly 11 million workers including casuals. Picture: NCA NewsWire / Nikki Short

Ms Chong said many small business owners wouldn’t be adequately resourced or trained to help an employee experiencing domestic violence.

“I’ve been in the industry for 50 years,” she said.

“Many business owners are not as old as me. They don’t have that experience. They don’t have the resources and small business people are overwhelmed and they’re busy.”

Ms Milla and Ms Chong said they disagreed with the Australian Services Union’s (ASU) position that the cost of a universal entitlement to paid domestic violence leave would be approximately 5 cents per worker per day regardless of the size of the employer.

The ASU got that figure from a 2016 report by progressive think tank The Australia Institute, which found only 1.5 per cent of women and 0.3 per cent of men would likely use paid domestic violence leave each year.

The union movement has campaigned for years for paid domestic violence leave and maintains the cost of productivity lost by not having the scheme is far greater.

Originally published as Businesses argue against covering the cost of 10 days’ paid domestic violence leave