New Proposal Will Hit Small Business, says ACCI

The Australian Chamber of Commerce and Industry (ACCI) has today raised its concern with proposed changes to the procedures for small claims in the Federal Court, which would allow applicants to seek costs orders against employers for claims worth up to $100,000.

Australia’s largest and most representative business network said such a change is the last thing small businesses need after years of complex industrial relations change.

ACCI chief executive officer Andrew McKellar said the “asymmetrical changes” to costs orders in discrimination applications should worry employers everywhere if that model is transplanted into the workplace relations system.

“Notwithstanding the fact that $100,000 should not be categorised as a ‘small’ claim, small businesses face the very real possibility of being financially crippled under the proposal,” said Mr McKellar.

“It’s alarming that under the proposal it appears that employers would conversely not be able to seek costs orders against applicants that are unsuccessful even if they have wasted an employer’s time and resources by dragging a dispute to the Federal Court.”

Mr McKellar said it’s disappointing that the Review recommends deferring consideration of a policy change that would actually assist employers – a small claims jurisdiction within the Fair Work Commission.

“As ACCI’s Agenda for Business makes clear, there should be a dedicated small business division at the Fair Work Commission to make expedited decisions and provide tailored support and advice for small employers, enabling time-poor small business owners to get back to running their business,” Mr McKellar said.

“Our policy will go a long way to assisting small businesses in dealing with the counterproductive changes that have been made to Australian workplaces.”

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