Small business owners will be adversely impacted by the federal government’s proposal to mandate paid domestic violence leave, employer advocates say.
The government is seeking to change employment law to allow any Australian worker, including casuals, to access 10 days of paid family and domestic violence leave.
A parliamentary committee examining the proposal has heard from employer advocates who say small business owners will struggle to implement the scheme.
The government is being urged to consider establishing a centralised agency to oversee the scheme and help small business employees affected by family and domestic violence.
A system similar to the government’s paid parental leave entitlements, which are issued through Centrelink, would be preferable, Council of Small Business Organisations Australia chief Alexi Boyd told the committee.
“We’re not against the 10 days’ leave, we’re against small business having to pay for the 10 days’ leave,” she said on Monday.
“Having an external and outside agency looking at the determination for everyone keeps it fair and equitable.”
Ms Boyd said the government’s proposal fails to recognise small business owners who experience domestic violence themselves.
“The purpose of this was to make family and domestic violence leave equitable and fair and accessible to all, but sole traders and small business owners themselves have been entirely missed,” she said.
“That is a great concern to us because micro businesses once again have been left off the list of people who can get support.”
If passed by parliament the scheme would start from February 2023 for most employees, although small businesses would have an extra six months to adjust to the change.
But the peak national employer agency is concerned elements of the bill won’t be reasonable and will instead be confusing for small businesses.
Initial feedback from employers is that the time frame for implementation is going to be too tight and problematic, Australian Industry Group representative Brent Ferguson said.
“Particularly for employers that don’t have the extended implementation date, the approach to the (DV leave) entitlement is entirely out of step with existing entitlements, in terms of how you calculate it,” he told the committee.
“That’s going to necessitate updating payroll systems (and) a big concern is that’s just not going to be feasible.”
