CCIWA has urged the Federal Government not to make major changes to the National Employment Standards (NES), warning that expanding them could make Australia’s industrial relations system even more complex.
The call comes as a parliamentary inquiry examines whether the NES remains fit for purpose.
In its submission, CCIWA said the NES generally worked well as a baseline set of minimum workplace entitlements. It warned against expanding the standards into new or disputed areas without clear evidence that change was needed.
CCIWA Chief Economist Dr Daniel Kiely said the NES was designed to provide a clear and stable safety net for national system employees and employers.
“Expanding them significantly, especially without proper consultation and understanding, risks increasing complexity for employers and hindering productivity across workplaces,” he said.
CCIWA’s submission proposed four reforms that would benefit employers and employees.
Concerns about expanding entitlements
CCIWA warned that proposals to extend the NES to cover new forms of work could blur the line between employees and independent contractors.
The submission said the NES should remain a simple set of minimum employment standards and cautioned against extending to people who were not employees such as gig workers or independent contractors.
“Expanding the NES to cover independent contractors is a risky proposition, as there may be unintended consequences for those who desire to run their own business,” Kiely said.
“Such changes could catch out the local tradesperson providing important services, reducing the ability for them to run their business, or potentially putting their current clients at risk of breaching industrial laws.”
Flexibility in modern workplaces
“Flexibility is crucial” for productivity, the submission stated, however the “current rigid structure of industrial relations makes achieving flexibility harder, resulting in poorer outcomes for business and employees”.
CCIWA proposed allowing employers and employees to agree on flexible part-time working arrangements. It also suggested that remote workers should be able to vary their working hours outside modern award spans where both sides agreed.
Clarity and consistency on public holidays
CCIWA also called for a nationally consistent number of public holidays under the NES.
It proposed that additional public holidays declared by states or territories should not automatically trigger penalty rates under the national system.
“With recent changes to the legislation in WA, the number of public holidays has increased up to 16 days a year, rather than just the legislated 13 days a year,” Kiely said.
“This creates uncertainty for employers, leads to them absorbing unexpected labour costs and hinders workplace planning, particularly for small businesses.”
Progress on a national long service leave standard
CCIWA also urged the Federal Government to move ahead with a national minimum standard for long service leave (LSL).
Currently, the NES relies on complex transitional arrangements linked to older awards and agreements from before the Fair Work Act 2009.
CCIWA said the NES should simply state that long service leave entitlements come from state and territory legislation until a national standard is introduced.
“Governments on both sides continue to state their desire for creating a national standard for long service leave,” Kiely said.
“After 16 years of the Fair Work Act we are still no closer to this, and it creates substantial complexity for businesses that operate across state borders.
“It is time we get this work underway to deliver a true national industrial relations system that works for employers and employees.”
The parliamentary committee received 77 submissions from employer groups, unions, academics and industry stakeholders. Submissions closed on February 27.
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