Business demand to gut workers’ unfair dismissal rights
Unions slam employer push to change small business legal definition from 15 to 50 employees.
Employers are urging the Coalition to dramatically wind back unfair dismissal rights for workers and expand exemptions from the federal workplace laws by changing the legal definition of a small business employer from 15 to 50 employees.
In a pre-election policy push, slammed as Grinch-like by unions, the Council of Small Business Organisations Australia also wants Labor’s new rights for union delegates scrapped by the Coalition if it wins next year’s election.
The COSBOA small business proposal goes much further than recent separate calls by the Australian Chamber of Commerce and Industry and teal MPs to increase the small business definition to 25 employees.
COSBOA chief executive Luke Achterstraat said Labor’s tranches of workplace law changes had “imposed unprecedented cost and complexity on millions of small business employers, and it was time to draw a line in the sand”.
Calling for an updated definition of small business, he said the current headcount definition of just 15 or less was not fit for purpose and should be more than tripled. “Too many small businesses face the risk of losing their status by bringing on additional casuals to meet seasonal demand,” Mr Achterstraat said.
“Many small businesses may easily employ dozens of people but operate on thin margins and low turnover. A more appropriate definition could be achieved by updating the definition to 50 full-time equivalent employees, excluding casuals.”
Under the existing law, workers need to be employed for at least six months before they can apply for unfair dismissal, but those working for a small business need to be employed for at least 12 months.
Acting ACTU secretary Joseph Mitchell said half of all workers would have unfair dismissal rights, rights to fair pay, redundancy pay, protections from wage theft and job security rights taken from them if the COSBOA proposal was implemented.
“The last thing any working person needs is less rights at work, less pay and less job security. If made law, these proposals would make cost of living pressures much worse,” he said.
“Even the Grinch would baulk at the business lobby’s Christmas wish list. It’s now on (Peter) Dutton to rule out this shocking call to rip up workers’ rights before Christmas.”
Asked for the Coalition’s position on the COSBOA proposal, opposition employment spokeswoman Michaelia Cash said the Coalition would release its industrial relations policy before the election. “The Coalition is an unashamedly strong supporter of small business,” she said.
“We want them to employ more casuals and more permanents, and for their business to grow, not shrink as many have done under the Albanese Labor government.”
The Coalition has pledged to reverse Labor’s casual employment changes, scrap the right to disconnect and reinstate the Australian Building and Construction Commission and union regulator the Registered Organisations Commission. Business groups also want a Coalition government to unwind or at least review Labor’s multi-employer bargaining provisions; same job, same pay labour hire laws; and enhanced workplace rights given to union delegates.
Senator Cash on Sunday said the Coalition would “reduce unnecessary compliance costs, which will mean more money for businesses to invest in higher wages, equipment, and expansion, benefiting families and workers”.
In October, Workplace Relations Minister Murray Watt opposed the ACCI call to increase the small business definition to 25, prompting employer and Coalition claims that the government had pre-empted a Fair Work Ombudsman review of the definition of small business.
Mr Achterstraat dismissed the ACTU criticism. “We think it’s scaremongering when people say it’s about removing workers rights,” he said. “It’s about providing certainty for small businesses who are putting their private capital on the line, and navigating a very complex workplace relations system. Hiring additional people can bring additional risk and additional cost.”
He said there had been at least 35 major changes to the Fair Work Act since May 2022, “not to mention the multitudinous new regulations that need to be complied with by small business”.
“Whilst more complexity is a boon for lawyers, mum-and-dad businesses are left behind and must incur considerable time and cost to receive advice. We are talking about employers without in-house HR or IR teams, often navigating an increasingly complex labyrinth on their own.”
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