‘Go-away’ payout spat

Business groups say workers and lawyers exploit Fair Dismissal Code

SMALL businesses have accused the Fair Work Commission of pressuring them to pay millions of dollars a year in “go away” money to rogue employees who have been lawfully dismissed for poor performance or theft.

Fed-up Queensland business and industry groups are demanding the Morrison government overhaul the Small Business Fair Dismissal Code, which they say is being exploited by no-win no-fee lawyers, opportunistic former staff and mediators who push parties into a settlement.

Industry groups have revealed already stretched mumand-dad business are paying thousands of dollars to sacked staff for their unworthy unfair dismissal applications because it is cheaper than the threat of going to court.

In a direct signal that the government is considering reform, Attorney-General Christian Porter said there was a “very widespread view that the code is not achieving … objectives”.

“When Labor introduced this code in 2009, it said that the code would be a clear and concise reference to help small business employers meet their obligations.”

However, some within the Coalition are nervous about reform, raising the prospect of Labor reviving its industrial relations fight against the then Howard government’s WorkChoices legislation.

The Motor Trades Association of Queensland said it had acted for many small businesses in unfair dismissal claims.

“While some of the claims have had merit … many of the claims are purely speculative and with little or no merit, with the claimant often represented by organisations, which see these matters as a lucrative source of income and for whom the facts are not allowed to stand in the way of a potential fee,’’ an MTA spokesman said.

Queensland’s Chamber of Commerce and Industry spokesman Dan Petrie said the matter was a constant challenge for small business.

“There is an uncomfortable truth politicians don’t want to hear, but the frustrations expressed by small business operators in hiring good staff is deafening and, sadly, paying go away money is a fact of life for many proprietors,’’ Mr Petrie said.