The review was conducted into the 'small business employer' definition in the Fair Work Act 2009 (Cth) to determine if it remains fit for purpose and if not, to provide recommendations on how it could be improved. From a workplace relations perspective, the small business employer definition has historically been used in unfair dismissal and redundancy contexts to ease the financial and regulatory burden on small business. In recent years, use of the definition has expanded to lessen, delay or exempt new workplace obligations for small business.

The review seeks to provide an accurate and impartial account of the key issues and stakeholder perspectives regarding the current small business employer definition in the Act, identifying both areas of consensus and points of divergence among stakeholders. 

There was broad agreement among employer and employee stakeholders on the ‘special circumstances’ faced by small businesses. These include limited human and financial resources, and constrained legal and compliance capabilities, which can make adherence to workplace and other regulatory obligations disproportionately burdensome. However, views diverged on whether the current definition should be amended. 

Given the divergence of stakeholder views on both the need for, and the approach to, reforming the small business employer definition, the review concludes that the government may wish to consider whether further work is warranted to evaluate possible options.