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Fair Work may trigger small business job cuts

A survey conducted by the Australian Retailers Association (ARA) has found that many small business retailers are still in the dark about Fair Work, with over 40 percent expecting increases in wage bills and one third planning to cut staff hours as a result.

The survey of over 150 retailers found that 72 percent do not fully understand their obligations under the Fair Work Act, and of those, 42 percent weren’t sure of the financial and other implications on their business.

ARA executive director Russell Zimmerman said retailers were doing their best to grapple the new laws and hold onto staff but more help was needed.

“Currently, over 54 percent of retailers have made operational changes to comply with the Fair Work Act but over 83 percent of retailers need to do more before they are fully compliant,” he said. “Almost 72 percent of retailers don’t fully understand their obligations under the Fair Work Act.”

Zimmerman said it is crucial the Government “recognises the key role employer groups play in getting employers up to speed with the new laws to help them manage increased costs without letting go of staff.”