Industry groups have slammed a proposal to modernise awards paid to Australian workers, saying it will cripple small business.
The Australian Industrial Relations Commission (AIRC) released drafts on 14 priority awards for reform in the mining, retail, hospitality, higher education and racing sectors.
The new awards would provide redundancy pay for most people employed in small businesses and an independent umpire for dispute resolution.
They would also include employee consultation rules for employers to discuss significant workplace changes.
The Australian Chamber of Commerce and Industry said the proposal was at odds with the federal government's vow to create modern awards without increasing employers' costs.
"The Australian government's process of creating new industrial awards to regulate workplace matters risks losing the confidence of the business community if labour cost increases and added regulation, contained in drafts released today, are reflected in final outcomes," the chamber warned in a statement.
It criticised plans to impose compulsory redundancy pay on small business, despite the federal government's policy to exempt businesses of less than 15 employees.
The chamber also attacked the plan to mandate employee and union consultation on workplace changes, restoring rules that were scrapped by the Howard government.
Australian Industry Group chief executive Heather Ridout said redundancy payout obligations would hit small businesses hard.
"Small business is the largest employer of labour in Australia," Ms Ridout said.
"There are approximately one million businesses with less than 15 employees. These businesses employ around three million Australians - over 40 per cent of private sector employment.
"It is counterproductive to increase the cost of employment in this sector and it is essential that the government includes provisions within its substantive workplace relations legislation preserving the current small business redundancy pay exemption."
ACTU secretary Jeff Lawrence said the plans were a welcome next step in creating a fair safety net for the wages and conditions for all workers.
"It is particularly welcome that the draft awards restore redundancy pay for the vast bulk of Australians employed in small businesses," Mr Lawrence said.
"However, we do note that the drafts do, in certain areas, result in a reduction of conditions.
"We will examine the drafts in detail to make sure that in the final awards these deficiencies are rectified and employees are not disadvantaged."
Opposition employment spokeswoman Julie Bishop said the AIRC was placed in an untenable position by the federal government's instructions that no employee should be worse off and business should not face increased costs under the modernisation process.
"While this has serious implications for increased regulation and costs, it could also drive down productivity, impact on economic growth and increase unemployment," Ms Bishop said.
The AIRC is due to hold consultations on the draft awards in October.
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