Fair Work Ombudsman decides to not make a recommendation citing 'impartial workplace regulator' role
Businesses have expressed disappointment after the Fair Work Ombudsman (FWO) did not make any recommendations on whether to update the small business definition in the Fair Work Act.
The FWO released its review on Monday of the Act's Section 23, which defines a small business as an employer that hires fewer than 15 employees.
Business groups are advocating for the expansion of this definition to include those with up to 50 full-time staff. Unions, however, are claiming that employers just want to get out of compliance with workplace laws.
But the FWO did not take sides in the debate, citing its "statutory role as an impartial workplace regulator."
"Consistent with the FWO's impartial role, the Review has not advocated for any one stakeholder view over another. Instead, it has presented the views of stakeholders and identified key issues for further consideration by government," the review read.
Instead, the FWO said the government may consider taking on further work to evaluate possible options.
"The Review has noted the potential benefits and disadvantages to changing the various elements of the currently constructed definition, based on stakeholder views, for the purpose of guiding any further work."
Business disappointed
The Australian Chamber of Commerce and Industry (ACCI) called the review a whitewash for not coming up with any recommendations.
"We were hoping for a substantial review to come up with meaningful recommendations, but instead the Fair Work Ombudsman squibbed it," said ACCI chief executive officer Andrew McKellar in a statement.
"What we have instead is a review which was established last year with submissions from multiple government and non-government organisations and no recommendations except for the government to look further into the issue."
McKellar said the ACCI plans to bring the conversation to the upcoming Economic Reform Roundtable in August.
"I'm very disappointed that this review has failed to come up with anything of substance and has proven to be an utterly futile exercise," he said.
The Council of Small Business Organisations Australia (COSBOA) also said the FWO's review is an "absolute missed opportunity" to bring the definition to modern business realities.
"While we appreciate the FWO's work in consulting stakeholders, it is inadequate that the review has not recommended any changes to the outdated 15-headcount definition of a small business employer," said COSBOA CEO Luke Achterstraat in a statement.
"One has to wonder whether this review was commissioned in good faith or whether it was window dressing, with a foregone conclusion pre-decided at the outset."
According to Achterstraat, businesses with 15 to 49 employees are treated like large corporations when it comes to workplace obligations despite lacking comparable HR, legal, and compliance resources.
"This was a real chance to create clarity, reduce red tape, and unlock growth, but instead, we're left with a definition that continues to penalise ambition," the CEO added.
Unions welcome the review
Meanwhile, the Australian Council of Trade Unions welcomed the report, saying lifting the threshold would have affected up to two million workers.
"Employers' arguments would have stripped away rights from some of our most vulnerable workers, such as visa holders, young workers, apprentices and trainees," ACTU Secretary Sally McManus told the Australian Financial Review (AFR).
"Workplace size should never be used as a reason to remove workers' entitlements."
Employment Minister Amanda Rishworth told the AFR that it will continue to consult with stakeholders over the matter.
"The government is committed to delivering our election commitments. We will continue to consult with stakeholders through our tripartite National Workplace Relations Consultation Committee," she told the news outlet.
