“We’re not going to be cracking down”: Fair Work Ombudsman pledges measured approach to small business facing new IR complexity

Australia’s workplace watchdog will not seek harsh penalties against small businesses genuinely trying to comply with major workplace relations reforms, Fair Work Ombudsman Sandra Parker says, claiming SMEs seeking advice will be shown to the “front of the queue.”

Appearing at the Council of Small Business Organisations Australia National Small Business Summit on Wednesday morning, Parker sought to quell fears that successive waves of industrial relations reform will hang onerous requirements to SMEs.

Last year’s passage of the Secure Jobs, Better Pay bill has already brought new rules which ban job ads listing pay below minimum standards, and entrepreneurs are gearing up for expanded access to multi-employer bargaining.

Tweaks to the Fair Work Act which expressly forbid sexual harassment in the workplace remain front of mind for small business owners, too, along with upcoming changes to how employees can advocate for flexible working arrangements.

Against that backdrop — and with the federal government pursuing further reforms — Parker said the Fair Work Ombudsman will take a sensible approach to small businesses adapting to legislative reform.

“We’re not going to be cracking down,” she said.

The Ombudsman said compliance letters remain its primary tool to encourage small businesses to abide by the rules, instead of seeking financial penalties from the outset.

That applies to the new rules around job ads, she said: while businesses which advertise positions with rates below the award minimum can technically face fines of up to $16,500, it is the Ombudsman’s preference to first ask alleged rule-breakers to amend their posting.

Appearing alongside Parker was Tony Ingpen, owner of an IGA in Mt Evelyn, Victoria, who said attempting to maintain workable relationships with casual, part-time, and full-time staff in a changing regulatory environment posed a significant challenge.

“You lose a bit of sleep at night at the moment,” he said.

“You try to do the best that you can, you try to automate as much as you can, but the reality is the moving parts of a business like ours makes it impossible” to operate without some difficulty, he added.

However, Ingpen encouraged other SME owners to proactively seek advice from the Ombudsman should they need it.

The organisation was “accepting” and “sympathetic” to the needs of small business operators trying to do the right thing by their staff, he said.

Businesses can contact the Fair Work Ombudsman via phone or email, where they can seek written advice on their circumstances.

The Ombudsman also offers free online systems including a Pay and Conditions tool to help entrepreneurs assess their requirements.