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A third of SMEs dont understand IR laws

MORE than a third of small business owners have no understanding of
new industrial relations laws being phased in on July 1, according to a
survey.

The Telstra Business Industrial Relations
survey of 282 Australian business owners found three-quarters were
aware the system was changing, but 37 per cent had poor or no
understanding of their obligations.

Just over half of respondents feel they are partly prepared

for the changes and close to a third feel they are not prepared.

Harmers Workplace Lawyers partner Shana Schreier-Joffe
said business owners needed to familiarise themselves with the laws
before they came into effect. Some changes will become law on July 1,
while new Modern Awards that cover a large proportion of the Australian
workforce will begin on January 1, 2010.

Employers are very much in the dark over award modernisation,
especially sectors that have traditionally not been subject to award
coverage, which will now be covered by modern awards,

Ms
Schreier-Joffe said.

Employers needing to adapt to changes include those with staff
working after-hours and on weekends. Ms Schreier-Joffe said sectors
that traditionally used above-award contractual arrangements might no
longer be able to do so and would face increased labour costs as a
result.

Modern Awards may also result in an increase in costs for
employers, particularly in industries that employ a large number of
casuals, such as retail and hospitality,

she said.

For instance, many modern awards will provide for loadings for
part-time employees, and the casual loading for a number of industries
will be increased to 25 per cent.

The Telstra survey found 48 per cent of company owners were concerned the changes would increase their business expenses.

Ms Schreier-Joffe said employers worried about rising wage costs
should consider mechanisms to protect themselves from modern awards,
such as a collective agreement.

The traditional use of common law contracts which provide for
above-award payments may no longer insulate employers from award
obligations to pay penalty, overtime and loadings,

she said.

Increased union power was a concern for 42 per cent of business
owners and 38 per cent were worried about changes to the unfair
dismissal laws.

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