Kevin Rudd's promise to abolish Work Choices was a centrepiece of Labor's election campaign. And while Labor will not control the Senate, if it can gain the support of independent and Greens Senators, Forward with Fairness will become the federal industrial relations policy. So what does this mean for small business?
Small business and unfair dismissal
Under the reforms, federal industrial relations law will be administered by Fair Work Australia, "a one-stop shop to provide practical information, advice and assistance to employees and employers."
Among its services, Fair Work Australia will hear unfair dismissal claims. Labor has promised it will not return to the old unfair dismissal laws. It says the new system would protect small business by preventing small (less than 15 employees) business employees from making an unfair dismissal claim within the first 12 months of employment.
- Allowing employees to be dismissed in cases of redundancy. Small businesses will also be excluded from a planned National Employment Standard for redundancy payments.Guaranteeing that reinstatement will not be ordered where it is not in the interests of the employee or the employer's business.
- But the Council of Small Businesses of Australia (COSBOA) has rejected the reforms.According to the group's CEO, Tony Steven, the proposed ALP unfair dismissal measure for small business is really just an extended Probationary period.
"[W]hat rights will Small Business have if an employee just walks, surely employers should have some degree of the same right," Mr Steven said in a statement. "It should be a two way responsibility."
Despite the comments, Labor says it has and will incorporate the views of small business in its final policy. A Small Business Working Group will help Fair Work Australia develop a Fair Dismissal Code. Where an employer complies with the Code, the dismissal will be considered a fair dismissal.
Protection from industrial action
Labor's reforms build on the success of the Australian Building and Construction Commission in tackling unauthorized industrial action. Strikes will only be protected from legal sanction if it is taken during a bargaining period for a collective agreement and is authorised by a mandatory secret ballot.
But the reform that has gained the most attention is Labor's decision to abolish the Australian Building and Construction Commission (ABCC).
Existing arrangements including funding will remain until 31 January 2010, when Labor says the Commission's responsibilities will transfer to a specialist division of Fair Work Australia. However the exact nature of the new division remains unclear with Labor promising to "consult extensively with industry stakeholders to ensure the transition to new arrangements will be orderly, effective and robust building and construction industry."
Options for employment conditions
Forward with Fairness will be fully implemented by 31 January 2010, giving employers the choice of the following instruments:
- Awards - with flexibility clauses for employees who are paid above the award rate, including rostering hours of work and all-up rates of pay.
- Individual common-law agreements with scope for individualised flexibility arrangements such as for work hours and holidays.
- Collective enterprise bargaining agreements – that a business owner can negotiate directly with their employees and open to additional arrangements on an individual level.
Until then, businesses currently using AWAs may use Individual Transitional Employment Agreements, so long as they do not disadvantage the employee against a collective agreement or applicable award. Existing AWAs will operate for their full term, up to five years after the election.