Small Businesses and Unfair Dismissal
March 13 2002 - Robert McClelland - Shadow Minister for Workplace Relations Media Statement - issued the following statement attacking Tony Abbott:
"Minister Abbott used Question Time today to creatively reinterpret a damning independent study that undercuts the Government's claims on the need for a small business unfair dismissal exemption.
"Far from supporting the Government's position, as Minister Abbott has claimed, the study demonstrates the Government's complete failure to educate small businesses.
"It is clear that many small business operators have unnecessary fears about unfair dismissal laws. The Government appears determined to exploit those fears instead of addressing misconceptions about unfair dismissal.
"Twenty-seven percent (27%) of small business operators were worried that "you can't dismiss a person even if they are stealing from you". FACT: Businesses can dismiss a person who steals. Thirty percent (30%) of small businesses thought that the employer always lost unfair dismissal cases. FACT: The outcome of arbitrated cases is roughly even.
"The study also plainly contradicts the Government's repeated claims that unfair dismissal laws are the biggest barrier to employment growth among small businesses. When asked to nominate "the main impediments to hiring new staff", only five percent (5%) of small businesses nominated unfair dismissals. In contrast, twenty-five percent (25%) of small businesses nominated the lack of skilled or experienced applicants.
"The survey undermines Government claims that a blanket small business exemption will create jobs. Only three percent (3%) of small businesses nominated "changes to unfair dismissal laws" as something that would encourage them to employ more staff. Thirty two percent (32%) of small businesses said that "more work" would encourage them to employ more staff.
"The Government needs to do more to educate small businesses about the real meaning of unfair dismissal laws - not just pursue an exemption that will leave all small business employees without protection against even the most capricious of dismissals."