<?xml version="1.0" encoding="ISO-8859-1"?> <docID>330881</docID> <postdate>2024-10-14 09:48:39</postdate> <headline>Minister rules out changes to small business size</headline> <body><p><img class="size-full wp-image-330882" src="https://citynews.com.au/wp-content/uploads/2024/10/20181212001376073962-original-resized.jpg" alt="" width="900" height="600" /></p> <caption>Calls by lobby groups to change the definition of a small business have been criticised by the ACTU. (Mick Tsikas/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Tess Ikonomou</strong> and <strong>Andrew Brown</strong> in Canberra</span></p> <p><strong>No changes will be made to rules determining the size of small businesses, despite a push from business groups, the federal government has confirmed.</strong></p> <p>The Australian Chamber of Commerce and Industry wants the legal definition of a small business changed from 15 to 25 employees.</p> <p>But Workplace Minister Murray Watt has ruled out the move, arguing it would remove industrial rights for a large number of workers.</p> <p>"There is absolutely no evidence that we need to make it easier for small and medium-sized businesses to be able to unfairly sack workers," he told ABC radio on Monday.</p> <p>"About one million workers employed in firms sized between 15 and 25 employees would lose their unfair dismissal rights if they were sacked."</p> <p>Deputy Opposition Leader Sussan Ley says the coalition will consider the proposal.</p> <p>"I hope they do turn into something that we consider seriously through the parliament, because that's how you affect change," she told ABC radio.</p> <p>"That's how you make the difference to small business' lives and that's what's not happening at the moment, so all of these proposals need careful consideration."</p> <p>Senator Watt said workplace laws were shaping up as a key issue going into the election, which is due by May.</p> <p>"We're very willing to have industrial relations as a key battleground for the next election," he said.</p> <p>The Australian Council of Trade Unions warned unfair dismissal rights would be significantly reduced if the definition of a small business was increased.</p> <p>ACTU secretary Sally McManus said the change would make it harder for workers to convert from a casual job to a permanent one, or to recover unpaid wages under existing exemptions for small businesses in the Fair Work Act.</p> <p>"If the business lobby got their way, this would act as a green light for bad bosses to return to the days when they could hire and fire when they feel like it, without having to give workers a reason for why they are working one day and gone the next," she said.</p> <p>"It is unfair to expect workers taking on a new job to be on a compulsory statutory probation period for an entire year ... and without having access to unfair dismissals protections."</p> <p>Analysis by economic research centre e61 Institute found the extensive use of non-compete clauses in contracts was associated with lower wages and fewer workers moving between jobs.</p> <p>One-in-five Australian workers have non-compete clauses, which stop them from competing with their employer in a similar industry or area for a nominated time after their job finishes up.</p> <p>Workers at firms that use non-compete clauses extensively were paid four per cent less on average than employees at similar firms that did not use non-competes.</p> <p>But workers in lower-skilled occupations faced worse outcomes, earning 10 per cent less after five years on the job.</p> <p>Research manager Ewan Rankin said the clause reduced workers' power to bargain for higher wages by limiting their future employment options.</p> <p>"By locking people into jobs that may not be the right fit for them, non-competes may also be damaging economic growth and innovation," he said.</p> </body>