‘Flexibility needs to cut both ways’: Businesses on the backfoot amid new workplace laws

With the new federal workplace laws becoming a reality, businesses are chasing their tail as overall confidence and consumer demand dwindles.

It was clear from the introduction of the Closing Loopholes Act that a number of Australian organisations weren’t over the moon with it. Now, Business NSW has come out and criticised the timing of the new Right to Disconnect laws – as well as changes to casual employment and independent contract rules – claiming it as another burden that SMBs must deal with.

According to its survey, business confidence has declined for the second straight quarter, dropping from -59.7 to -67.8. It is a figure that Business NSW chief executive Daniel Hunter has described as a “tough outlook” in what is a challenging time for Australian organisations.

“Business confidence in NSW has declined for the second straight quarter, making for a tough outlook for business,” Hunter said.

“Into this environment has come the federal government’s so-called ‘closing loopholes’ legislation. These laws will take time to have their full effect, but there is no doubt that it’s an additional layer of red tape our economy doesn’t need.”

“This will increase the compliance and regulatory burden on business.”

Other findings from the Business NSW business conditions survey showed:

• Thirty-eight per cent of businesses said taxes and government charges are the biggest barriers to business expansion.
• Sixty-seven per cent of the businesses said the cost of doing business is the biggest barrier to business expansion.
• Sixty-four per cent of businesses have identified barriers to winning government contracts, with the most common barrier being the high cost or time involved in preparing applications (33 per cent).
• Only 45 per cent of small businesses surveyed have accessed the instant asset write-off scheme and got some benefits from it.

The tumultuous economic climate, of course, does not help the performance of Australian businesses, which have struggled to combat low consumer demand, spurred on by a cost-of-living crisis that is causing harsh financial strain on Aussies across the country.

In terms of the workplace law changes, SMBs still have a bit of breathing room before the Right to Disconnect begins to affect them, which should allow them to prepare for the incoming change thoroughly.

“Small businesses (with less than 15 employees) will have another year before the Right to Disconnect laws kick in for them – and that’s positive because there will most likely be teething problems for medium and large businesses,” Hunter said.

As the average Australian workday continues to evolve with different hybrid working models and flexible arrangements being implemented, Hunter believes the sentiment needs to go both ways for businesses to survive.

“Ultimately, modern-day employers are shifting to this informal ‘give-and-take’ approach anyway. Workplaces are saying, ‘You can work in the morning and can pick up the kids in the afternoon, no problem,’” Hunter said.

“But under the new laws, contacting someone after hours is now considered problematic – even if someone’s traditional workday has already had those family-friendly allowances factored in.”

“If the unions want a regimented workplace, then that flexibility needs to cut both ways.”