Employment legislation is complex and the rate of change is fast. Recent amendments bring changes for all levels of business, and with increased penalties for non-compliance it is vital all employers are across their obligations.

At the CommBank SmallBiz Week 2024, join Victorian Chamber Acting General Manager of Workplace Relations Lisa Davidson to hear reflections on the challenges and opportunities for small business in managing their compliance obligations.

Challenges for SMEs

There are many examples of the costs of getting it wrong for small business, with a need for employers to know the rules and requirements, including as they change.

Over the past year, we have seen changes to many aspects of employment law including fixed-term contracts, casual employment, wage theft and independent contractors. All these mean that employers, including small business employers, are at risk if they don’t have a clear mechanism to keep up to date, and comply, with these changes.

Some of these changes include:

• Fixed term contracts – introduced significant restrictions to when fixed term contracts can lawfully be used
• Casual employment – a new incoming requirement will change the definition and test for Casual Employment, as well as Fixed Term Contractors
• Wage theft - As part of upcoming changes to workplace laws, intentional underpayment of wages by employers will become a criminal offence. A Voluntary Small Business Wage Compliance Code (Voluntary Code) will be established.
• Changes to Small business redundancy exemptions mean that some employers who were previously over 15 employees will have to pay redundancy
• Right to disconnect starting in August 2025 for small businesses, with the employee right to refuse contact if that refusal is unreasonable.

There are, unfortunately, many instances of small business doing what they think is right, only for a regulator to hold a different view. In a recent example, a small business (i.e. under 15 employees) was ordered by the Fair Work Commission (FWC) to pay a former employee $12,000 plus two weeks’ notice already paid to them at the time of termination. During the hearing, four parties from the employer gave evidence, an additional time and cost for the employer.

This amount was ordered despite the FWC being satisfied that the ex-employee’s conduct was “belligerent and disrespectful” and that for a “senior employee to stand up, swear, storm out of the office and slam the door is reprehensible behaviour”. The ex-employee “disappeared” for three and a half days knowing “that her absence could frustrate and disadvantage the Respondent”. Compensation was still awarded because the Commission determined that procedural fairness was not sufficiently followed, with one person internally undertaking the investigation and termination process.

While the Victorian Chamber has the knowledge for this and many other scenarios, and openly shares this with our members, not all small businesses have ready access to what they need to know to avoid these scenarios.

We see some of the key opportunities for employers as including:

• Review of current and upcoming business needs, including considering changes to fixed-term and casual engagements
• Ensuring that processes and systems are robust and in line with legislative requirements – including ensuring that managers are educated on requirements and there is a shared understanding.
• Engaging with specialised providers for key compliance activities, such as Award identification, identifying minimum wages, and termination of staff
• Identifying and maintaining either a subject matter expert internally, or externally such as a member organisation. This includes where there are particular codes or concessions for Small Business.

SmallBiz Week

Commbank SmallBiz Week brings together business-to-business suppliers from a diverse range of industries with small business owners and leaders, ideal for those actively looking for new products and services to help improve their business.

The event will be held at the Melbourne Convention and Exhibition Centre from 28-30 May, 2024, bringing together thousands of business owners, government agencies, and industry leaders.

The Victorian Chamber looks forward to presenting at the upcoming SmallBiz Week, and encourage our members to share this opportunity with small businesses in their networks.