Statement by Heather Ridout
Chief Executive Australian Industry Group

"A detailed submission released today by the Australian Industry Group shows that some sensible changes are needed to the Fair Work transfer of business laws. As the laws currently stand they are operating against the interests of both employers and employees," Ai Group Chief Executive Heather Ridout said today.

"The transfer of business laws require employers who take over outsourced work to adhere to enterprise agreements and other instruments which applied to the old employer. The transfer of business provisions of the Fair Work Act have a wide scope, and are very different to the previous provisions. For example, in some circumstances the instruments can become binding on employees of the new employer who did not transfer.

"After 12 months of operation, it is very clear that the laws are acting to deter employers who take on outsourced work from employing any employees of their client. This is not sensible when in many cases the new employer, the old employer and the employee would all like the employee to transfer. The laws are creating a lose-lose-lose scenario.

"Ai Group has proposed a series of sensible and practical changes to the laws, including reinstating the “character of business” test which was developed by the High Court but effectively extinguished by the Fair Work Act.

"It is vital that Australia maintain a fair and productive workplace relations system which enables Australian employers to remain flexible and globally competitive. Where changes are identified which would make the system work more effectively then such changes should be made," Mrs Ridout said.


Further comment: 
Stephen Smith, Director - National Workplace Relations  (02) 9466 5521

Submission: 
Download a copy of Ai Group’s Transfer of Business Provisions of the Fair Work Act – Negative Impacts upon the ICT and Other Industries