ACT Small Business spokesperson Laura McClure is celebrating the first reading passage of her member's bill, the Employment Relations (Termination of Employment by Agreement) Amendment Bill.

The bill would allow employers to open protected negotiations for the termination of an employment contract, avoiding costly unfair dismissal or personal grievance claims.

"Sometimes when one person employs another it just doesn’t work out. Relationship breakdowns, poor performance, or personal circumstances can make an employment relationship unsustainable," says McClure.

"Some employers would happily offer an employee money to leave, and in many cases the employee would happily accept. But this is not an option under current law.

"I know from experience that a common fear for employers is a long and costly personal grievance or unfair dismissal claim, even when the employer has adhered to due process. These processes are stressful for both employers and employees, and often end in a settlement anyway either due to entering the without prejudice process or from a PG.

"Hefty legal fees for personal grievance and unfair dismissal claims should not be seen as 'the cost of doing business'.

"My bill makes it easier for two adults to come to an agreement, shake hands, and move on to greener pastures before any dispute is escalated to the Employment Relations Authority.

"An employer could approach an employee and say, 'This doesn’t seem to be working out. Would you be open to sitting down and coming to an agreement about your employment?' The employee is under no obligation to take up that offer, or any offer made in the subsequent meeting.

"An employer could seek termination of the contract with the employee’s consent, in return for specified compensation. These conversations would be without prejudice, meaning they could not be used as a part of any future unfair dismissal or personal grievance case, unless certain exemptions apply.

"I want this legislation to be as effective as it possibly can be, so I'm now encouraging workers, employers, and advocates to engage with the select committee process around my bill."

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