The Federal Government’s changes to the Small Business Fair Dismissal Code will result in more job losses, says Shadow Small Business Minister Steven Ciobo.
The wording in the code has been changed from, “a small business employer may be required to provide evidence of compliance” to “a small business employer will be required to provide evidence of compliance”, where an employee makes a claim for unfair dismissal.
“This might seem like a small change, but it’s huge in terms of its effect on small business,” Mr Ciobo said. “This is a retrograde step and puts the onus squarely back on small business to prove their case.”
Ciobo believes this will result in an explosion of “go-away” money, where a small business employer will “throw money” at an employee with a dismissal grievance, rather than go through the lengthy process of addressing the matter with Fair Work Australia.
This will result in further job losses and hinder any incentive for small business owners to hire more staff, says Ciobo.
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