Australia is facing sustained challenges of rising inflation, low labour productivity growth and subdued private-sector investment. These conditions constrain real wage growth, international competitiveness and long-term economic resilience. A modern, efficient and workable workplace relations framework is a critical enabler of sustainable wage growth, labour productivity, investment and job creation.
The Business Council of Australia (BCA) supports the objectives of the National Employment Standards (NES) as a safety net of minimum employment conditions. However, the effectiveness of the NES depends not only on the substance of the entitlements but also on their practical application and ease of interpretation by employers and employees alike. Where the NES imposes requirements that are unnecessarily complex, rigid or administratively impractical, it can undermine productivity, innovation, impose avoidable compliance costs or make compliance unnecessarily difficult and divert resources away from growth-enhancing activity.
This submission does not address all Terms of Reference for the Inquiry into the operation and adequacy of the NES (Inquiry). Rather, it focuses on the effectiveness and application of the NES, including targeted opportunities for technical improvements that would enhance efficiency without diminishing employee protections.
In particular, the BCA recommends a modest amendment to clarify the timing for payment of notice of
termination and accrued annual leave on termination. Current case law requires these amounts to be paid on the final day of employment. This approach is impractical for many employers, particularly those with large or complex payroll systems, and out of line with community expectations. We also seek clarification of how a request to work a public holiday can be made to employees, to ensure the efficient operation of many businesses that need to continue operating on public holidays. We repeat our call for harmonisation of long service leave and make recommendations over simplifying leave accruals and interactions between modern awards and the NES.
However, given the significance of the issues raised in this Inquiry, the BCA also seeks the opportunity to respond to submissions from other parties. This will be particularly important where submissions propose additional or enhanced employment entitlements, given the current cost pressures on business and the need to carefully consider productivity, investment and employment impacts. Business cannot support claims for additional or expanded entitlements at this time.