More flexible parental leave ‘could hobble small business’

The Council of Small Business Organisations Australia (COSBOA) has condemned proposals for more flexible unpaid parental because they could “lead to an inability for the smaller businesses to operate”.

It said reduced notice periods in the Protecting Worker Entitlements Bill could result in an “inefficient” workplace and would need early review.

The council said it supported the proposal to make unpaid parental leave more flexible in principle but raised significant concerns about how it would operate in practice.

“The 10-week notice and the four week period is appropriate. The provisions acknowledging and permitting shorter periods by agreement are also acknowledged,” said COSBOA’s submission on the bill.

“We are concerned that these provisions may result in employees seeking parental leave with minimum notice or for ad hoc singular days, resulting in an inconsistent and inefficient work environment.”

The organisation said the practical impact on businesses should be assessed six months after their implementation.

In its submission, COSBOA also said a proposal to add a right to superannuation into the National Employment Standards would put an unnecessary obligation on employers.

“We are very concerned that this amendment creates yet further red tape and burden upon an employer to now report and substantiate superannuation payments to a second government regulator,” said the submission.

“Employers must already report superannuation obligations and payments through the ATO Single Touch Payroll, SuperStream and payment systems. Employers are already subject to scrutiny and investigations by the ATO.”

“These provisions do nothing to improve the superannuation payment process imposed upon employers.”

The council also flatly opposed the bill’s proposed amendment to the Fair Work Act 2009, which the government said would provide “greater clarity and flexibility and additional safeguards for employee-authorised deductions”.

The amendment would allow employees to authorise employers to make salary deductions that were recurring and for varying amounts over time, which it said would ease the administrative burden as the current ruling does not allow for varying deductions.

COSBOA chair Matthew Addison said it was unaware of any issue with the current system of an employee notifying an employer of their desired change to a deduction from their pay.

“Initially we perceive significant issues created where an employee’s pay is altered without the employee’s specific prior knowledge,” said COSBOA.

“We are unable to determine any decrease in red tape, regulation or burden on employers nor employees by this proposed change.”

“This proposal will create additional administrative burden upon employers to take on the role of notifying employees of a change in the amount of a deduction due to actions of which the employee may not be aware.”

However, the organisation did support the amendment in the bill regarding the rights of temporary migrant workers.

COSBOA said it supported the amendment which would clarify the application of Fair Work Act 2009 protections to temporary migrant workers, including those working in breach of migration laws.

This article was originally published on HR Leader's sister brand, Accountants Daily.