Large fines for misleading unfair dismissal claims passed by the Senate this week should be adopted by the Queensland government, according to a state business leader.
The Senate passed new unfair dismissal laws on Wednesday that introduce fines of up to $10,000 for companies and $2,000 for individuals for unmeritorious claims, placing greater accountability on lawyers and advisers.
The bill also includes a formalisation of the three-month probation period for new employees, which is already legislated for in Queensland, as well as giving the Australian Industrial Relations Commission (AIRC) power to take the size of the business involved in the claim into account.
The bill, with amendments by the Democrats, will be heard in the House of Representatives next week.
Commerce Queensland chief executive officer Andrew Craig says Queensland small business operators consider the current unfair dismissal laws too expensive, inflexible and complex, which has led to decreasing numbers of people in full-time employment.
And a fear of unfair dismissal claims is the top small business industrial relations concern, according to a recent Commerce Queensland survey.
"Factors encouraging employers to take on casual rather than full-time employees include labour on-costs, fears concerning unfair dismissal legislation and consumer spending," Craig says.
"The fact is business is reluctant to employ on a full-time (basis), further evidence that Queensland's industrial relations system is neither employer nor employment friendly.
"Those Queensland businesses operating under federal awards will be pleased with the changes to unfair dismissal laws passed in the Senate."
Craig's comments to make the Queensland system more employer and employment friendly are backed up by the Workplace Relations minister Tony Abbott and Small Business minister Ian McFarlane in a joint statement.
"We would now urge State governments to make complementary changes to their state unfair dismissal laws," the statement says.
The Senate amendments were introduced by Democrats workplace relations and small business spokesman Senator Andrew Murray.
Murray called for unfair dismissal laws to allay small business concerns as well as guaranteeing employee's rights.
"Some employers want an open season on employees and seek no unfair dismissal protections whilst some unionists want an unreasonably generous system," he said.
UNFAIR DISMISSAL LAWS - SCHEDULE OF MAJOR CHANGES
- A three month default qualifying period before unfair dismissal claims can be brought by new employees (period able to be increased or decreased by written agreement)
- An obligation on the Australian Industrial Relations Commission to specifically consider the differing capacity of businesses of different sizes to comply with dismissal process and procedures – such as the absence of dedicated human resource specialists in small and medium business
- Expanded costs orders able to be made against parties who act unreasonably in pursuing, managing or defending claims
- Penalties available against lawyers and advisers who encourage making or pursuing unfair dismissal applications where there is no reasonable prospect of success, or who encourage defence of applications where there is no reasonable prospect of a successful defence (penalties – up to $10,000 company, $2,000 individual)
- Requirement for lawyers and advisers to disclose ‘no win no pay' or contingency fee arrangements
- Power to have the Australian Industrial Relations Commission dismiss matters following initial conciliation if they have no reasonable prospect of success
- Power to have the early dismissal of claims which are made beyond the jurisdiction of the Australian Industrial Relations Commission
- Power to have speedier dismissal of claims where workers fail to attend hearings, or where second applications on the same dismissal are made
- Tightening the rules relating to the granting of extensions of time for the lodgement of late applications
- Tighter rules relating to claims by demoted employees.
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