THE Federal Government’s push for small business exemption from unfair dismissal laws has been backed by a recent report into Australia’s unemployment levels.
THE Federal Government’s push for small business exemption from unfair dismissal laws has been backed by a recent report into Australia’s unemployment levels.
The report, Poor Laws: The Unfair Dismissal Laws and Long-Term Unemployment, is the first in a series complied by The Centre for Independent Studies and has been written by policy analyst Dr Kayoko Tsumori.
The report calls for amendments to unfair dismissal laws to encourage small business owners to take on new staff.
“… unfair dismissal provisions in the Commonwealth Workplace Relations Act 1996 (the 1996 Act) have an adverse effect on employment, particularly in the small business sector,” the report says.
“The unfair dismissal laws reduce employment opportunities in the small business sector – a possible rich source of jobs. This is likely to contribute to the long-term unemployment rate by putting job seekers at a greater risk of remaining unemployed.
“To boost the number of avail-able jobs, and thus to combat long-term unemployment, the unfair dismissal laws need to be amended in such a way that small businesses will feel more confident about taking on new staff.”
Since 1996 the Coalition Government has had 19 attempts at passing legislation that will exempt businesses employing less than 20 employees from unfair dismissal laws.
A spokeswoman for the Federal Employment and Workplace Relations Minister Tony Abbott said the legislation would be tabled again during the current parliamentary sitting.
“We simply want it passed in this session of parliament,” she said.
The spokeswoman said Mr Abbott was adamant that small businesses should be granted exemptions from current unfair dismissal laws.
WA Small Business and Enter-prise Association executive director Philip Achurch said unfair dismissal laws was an ongoing issue for small business operators.
“It is a common complaint from employers as it is a very strong restrictor for putting on employees,” he said.
“The current unfair dismissal laws, both State and Federal, hinder employment growth.”
Dr Tsumori’s report says that, while unfair dismissal laws aim to protect employees from being sacked in unreasonable circum-stances, they also deter employers from hiring and firing, stifling job growth.
“Several cross-country studies have demonstrated that higher employment protection, including but not limited to unfair dismissal laws, reduces flows into and out of employment and thereby prolongs the spell of unemployment,” the report says.
“Under strict employment regulations, therefore, risk-averse employers may choose to encourage their existing employees to work harder and/or longer, thereby holding at a minimum number of possible firings.”
The report, Poor Laws: The Unfair Dismissal Laws and Long-Term Unemployment, is the first in a series complied by The Centre for Independent Studies and has been written by policy analyst Dr Kayoko Tsumori.
The report calls for amendments to unfair dismissal laws to encourage small business owners to take on new staff.
“… unfair dismissal provisions in the Commonwealth Workplace Relations Act 1996 (the 1996 Act) have an adverse effect on employment, particularly in the small business sector,” the report says.
“The unfair dismissal laws reduce employment opportunities in the small business sector – a possible rich source of jobs. This is likely to contribute to the long-term unemployment rate by putting job seekers at a greater risk of remaining unemployed.
“To boost the number of avail-able jobs, and thus to combat long-term unemployment, the unfair dismissal laws need to be amended in such a way that small businesses will feel more confident about taking on new staff.”
Since 1996 the Coalition Government has had 19 attempts at passing legislation that will exempt businesses employing less than 20 employees from unfair dismissal laws.
A spokeswoman for the Federal Employment and Workplace Relations Minister Tony Abbott said the legislation would be tabled again during the current parliamentary sitting.
“We simply want it passed in this session of parliament,” she said.
The spokeswoman said Mr Abbott was adamant that small businesses should be granted exemptions from current unfair dismissal laws.
WA Small Business and Enter-prise Association executive director Philip Achurch said unfair dismissal laws was an ongoing issue for small business operators.
“It is a common complaint from employers as it is a very strong restrictor for putting on employees,” he said.
“The current unfair dismissal laws, both State and Federal, hinder employment growth.”
Dr Tsumori’s report says that, while unfair dismissal laws aim to protect employees from being sacked in unreasonable circum-stances, they also deter employers from hiring and firing, stifling job growth.
“Several cross-country studies have demonstrated that higher employment protection, including but not limited to unfair dismissal laws, reduces flows into and out of employment and thereby prolongs the spell of unemployment,” the report says.
“Under strict employment regulations, therefore, risk-averse employers may choose to encourage their existing employees to work harder and/or longer, thereby holding at a minimum number of possible firings.”
