Turmoil for Small Business

[press release]

The new Fair Work Act provides for significant changes to the regulation of industrial relations and enterprise agreements across all industries.
Whereas most small businesses have operated with considerable flexibility in the past few years, this is severely threatened by a number of arrangements which are due to commence from 1 January 2010.
There are 2 major areas of concern: a new set of National Employment Standards and an award modernisation process.
‘Most of the focus to-date has been on the Standards,’ claims Ron Jones, owner of createHR a specialist consultancy dealing with small to medium size businesses.
‘However, the biggest challenge for a number of small enterprises is the award modernisation process.’
‘Small businesses have not had to worry about awards for some time, but what is now being implemented is a much broader coverage – employees and businesses which have never been subject to the award system will now find they have to conform.’
‘Awards have traditionally been the safety net of employment conditions and the new process really extends their coverage to a much wider area. In fact the Commission responsible for setting out new awards has now adopted a ‘Miscellaneous Award’ for employees and businesses not covered by any other award.’
‘Unless small business acts now to establish their own agreements, they will find that from 1 January next year they are going to have to pay overtime, weekend and penalty rates according to the award provision. This may not suit them and could reduce their flexibility and capacity to survive in an economy which is just starting to emerge from crisis.’
createHR is calling for the award process to be delayed by at least 6 months to give small business an opportunity to fully comprehend the magnitude of changes taking place.