Has Reduced Legal Protections for Workers Employed by Large Employers

The federal government’s exemption from unfair dismissal laws for businesses who sack staff for  “genuine operational reasons” has “significantly enhanced” the freedom of business to hire and fire and has reduced legal protections for workers, according to a Monash University report commissioned by the Vic Workplace Rights Advocate. The advocate’s operational reasons inquiry was launched back in April 2007.

The report, Freedom to fire: economic dismissals under Work Choices, was compiled by snr lecturer in Workplace Law at Monash University, Dr Anthony Forsyth. He said the Jan 2007 Village Cinemas decision had “wrought a significant alternative” for the federal unfair dismissal regime.

“Even more alarmingly” the exclusion had “opened the door for employers” to dismiss workers for the purpose of engaging others to do the same job for lower wages and conditions, the report found.

The AIRC’s “broad interpretation” of operational reasons had left employers “largely free” to restructure operations and staffing arrangements, and implement redundancies “without the need to point to valid reasons for dismissal, or to treat employees fairly and reasonably in the process”, the report found.Vic IR Minister Rob Hulls in releasing the report said it confirmed Work Choices had discouraged workers from lodging unfair dismissal claims. “It shows most workers have had their rights to be treated reasonably and with dignity removed,” Hulls said.

WR Shadow Minister Julia Gillard described the report as proof Work Choices was hurting workers. “The report shows three out of five cases were thrown out because Mr Howard has created this excuse of ‘operational reasons’ for sacking people, even in big businesses,” she said.