Fair Work Ombudsman Goes MIA On Ag Businesses’ Futures
The National Farmers’ Federation (NFF) is disappointed by the Fair Work Ombudsman’s (FWO) recent review into the definition of a “small business employer”, under the Fair Work Act.
The review failed to deliver any substantive recommendations, instead advising the Federal Government to consider whether further work is warranted.
NFF President David Jochinke said the report’s lack of tangible recommendations was frustrating.
“This outcome doesn’t provide the policy clarity that many were expecting,” Mr Jochinke said.
“Currently, a ‘small business employer’ is defined as having fewer than 15 employees.”
The NFF recommends this should be lifted to at least 20 employees and advocates for using Full-Time Equivalent (FTE) over a headcount approach, calling out the Senate Education and Employment Legislation Committee for being patronising to say “a ‘full-time equivalent’ measure may be confusing for small businesses”.
“This narrow, headcount-based definition, leaves regional employers exposed to disproportionate obligations, and discourages employees from offering flexible or part-time roles,” Mr Jochinke said.
“The headcount approach does not allow for businesses who operate by the seasons, or have intensive harvest and planting periods.
“Continuing this narrow definition, implied to be the FWO’s preferred course given the absence of recommendations, would be detrimental to agriculture.”
Mr Jochinke said farmers were already stretched thin, and many don’t have the time, money, legal, or administrative resources needed to manage increasingly complex industrial relations requirements.
“Agriculture faces one of the- if not the – highest regulatory burdens of any industry. While we understand regulation is necessary, it is important context when talking about the pressures small businesses face.
“The ‘small business employer’ concession in the Fair Work Act 2009 was designed to ease these compliance burdens, but we believe there are gaps in this approach.
“The failure of the FWO to make any recommendations was a missed opportunity to modernise the Act in a way that supports farming businesses.
“Family-run farms make up the majority of businesses across Australian agriculture.
“The NFF urges the Federal Government to undertake further work as a matter of priority, including a comprehensive regulatory impact analysis and updated economic modelling, to ensure the Fair Work Act’s small business provisions reflect the realities of today’s operating environment,” Mr Jochinke said.
The NFF’s submission, including recommendations to the FWO, can be found here.
https://nff.org.au/media-release/fair-work-ombudsman-goes-mia-on-ag-businesses-futures/