Labor and Greens Senators support the principle behind the Fair Work Amendment (Family and Domestic Violence Leave) Bill 2018 ('the bill'), but believe that it is a missed opportunity to make far reaching and more meaningful changes to family and domestic violence leave through the implementation of 10 days paid leave.
Labor and Greens Senators recognise that family and domestic violence is a nationwide issue. Approximately one in four Australian women (2.2 million) and one in thirteen men (703 700) have experienced violence by an intimate partner since the age of 15.
Labor and Greens Senators note however, that extensive research shows that family and domestic violence has a disproportionate effect on women. It is the leading contributor to death, disability and ill-health amongst women aged between 15 and 44 in Australia. PricewaterhouseCoopers further estimated that 27.5 per cent of Australian women have experienced physical or emotional abuse by a current or former partner.
The economic costs associated with violence against women are also well documented. This includes a cost of $22 billion per annum to the Australian economy, including $1.3 billion in lost productivity, absenteeism, and the cost of replacing employees who have left the workforce, either through injury or death.
Labor and Greens Senators agree with the statement in the main report that 'financial security can be a critical determinant of victims' ability to escape violent and abusive relationships'.
However, many submitters saw the five days unpaid leave proposed in this bill as inadequate because it risks forcing victims to choose between their income, which is often critical to their ability to escape, and taking time off work to deal with the practicalities associated with family and domestic violence.
Rape & Domestic Violence Services Australia (R&DVSA) for example noted that one in four Australian households possess less than $1000 in cash savings, whilst people suffering from family and domestic violence suffer a 25 per cent loss of income associated with abuse. Victims are therefore 'more likely to experience food insecurity, to struggle to find affordable housing and to cover the basic essentials like utility bills'. The R&DVSA therefore stated that paid leave is essential in achieving safety for victims.
The ACTU noted the importance of paid leave in its submission:
Paid leave allows an employee subjected to family and domestic violence to take an absence from work to attend necessary appointments, or to make arrangements to relocate or ensure their children's protection, without suffering financial disadvantage.
The Australian Association of Social Workers similarly noted the importance of paid family and domestic violence leave, stating:
Financial abuse is a significant feature of domestic violence. This often means that parties are in extremely unequal financial circumstances, which increases the vulnerability of family violence victims… it is our belief that Family Violence Leave needs to provide an appropriate level of financial support if the measures truly seek to provide "invaluable support to employees who are experiencing family and domestic violence."
Labor and Greens Senators also believe that paid leave is particularly important for women as they are over-represented among the award-reliant, casual and low paid workforce as well as being predominantly responsible for caring for children and others. As a result women are more likely to use pre-existing leave entitlements on caring responsibilities and are therefore also more likely to have to access annual and personal leave to resolve issues relating to domestic violence, such as attending court hearings or finding emergency accommodation to escape a violent relationship.
Labor and Greens Senators also note that evidence suggesting that the financial impact of implementing 10 days paid family and domestic violence leave is minimal. A research paper from Dr Jim Stanford, of the Centre for Future Work at the Australia Institute, noted the 'only around 1.5 percent of female employees, and around 0.3 percent of male employees, are likely to utilise leave provisions in any given year'. Similar evidence has been found with the Victorian and Western Australian Governments which have also noted low rates of paid family and domestic leaving leave amongst employees.
Dr Stanford's paper further emphasised that the total wage payouts to workers on family and domestic violence leave will cost a relatively modest $80–120 million per year for the Australian economy. When broken down, the incremental payments to workers using the leave would amount to 0.02 per cent of current payrolls.
Labor and Greens Senators believe that given the low costs of implementing a ten day paid leave scheme compared to the costs that domestic violence places on the Australian economy it is clearly preferable, from an economic standpoint, to the five days unpaid leave.
On an employer level, the costs on individual employers implementing paid domestic violence leave is offset by the benefits received by the organisation through reduced employee turnover and increased productivity. This can clearly be seen by companies such as PwC, the National Australia Bank, ANZ, the Commonwealth Bank and KPMG already offering paid family and domestic violence leave.
Labor and Greens Senators further recognise that paid domestic violence leave poses the potential to provide additional benefits to employers, including reduced absenteeism, reduced costs of recruitment, hiring and training of new employees who left their jobs because of domestic violence and the paving the way for the implementation of broader domestic violence strategies in workplaces.
Labor and Greens Senators also recognise the potential for paid family and domestic violence leave to create a demonstration effect, leading to broader cultural changes and a shift in societal views about domestic violence. As the R&DVSA noted, the introduction of paid family and domestic violence leave:
…may shift general attitudes towards violence against women. It may begin to address the economic inequalities and hence the core driver of violence against women, which we know is gender inequality. It may also begin to shift societal responses to violence against women.
Family and domestic violence is a 'gendered crime' that is highly prevalent but also preventable. It destroys individuals, tears apart families and causes physical, emotional and financial suffering for its victims. While the principle behind the bill is therefore commendable, Labor and Greens Senators believe that 10 days paid leave would better ensure that victims of family and domestic violence can escape toxic relationships. If the bill is not extended to include paid leave, the proposed legislation will fail to support the most vulnerable workers affected by family and domestic violence.
Recommendation 1
Labor and Greens Senators recommend that the government amend the bill to provide 10 days paid family and domestic violence leave.
Senator Gavin MarshallSenator Deborah O'Neill
Deputy ChairMember
Senator Larissa Waters
Substitute Member