International Law

Fair Work Bill passed: small business employer definition changed

After extensive negotiation with Senate Independents (and despite the Opposition's vote against it), the Fair Work Bill 2008 was passed on 20 March 2009. (see the history of the Bill and the Senate amendments here).

The amended Bill defines a small business employer for unfair dismissal purposes as being one who employs:

• until 1 January 2011, less than 15 full time equivalent employees; and
• after 1 January 2011, less than 15 employees by individual head count.

Employees of a small business will only be able to claim for unfair dismissal after they have been employed for at least 12 months. To dismiss someone fairly after 12 months the employer will have to comply with a Fair Dismissal Code for Small Business.

Small business employers will also be exempted from the redundancy pay obligations. For the purpose of this redundancy pay exemption, the 15-employee test (calculated on an individual head count basis) has been retained.

Most of the provisions of the Fair Work Bill will commence on 1 July 2009. The National Employment Standards (NES), modern awards and minimum wage provisions in the Bill are intended to commence on 1 January 2010.

Full post as published by Australian Regulatory Compliance Review on March 21, 2009 (boomark / email).