The statements by AIG and the Australian Chamber of Commerce and Industry increase pressure on Attorney-General Christian Porter to amend the draft laws,but are in direct conflict with requested changes from theCatholic church and other faith organisations.
The proposed law makes it discriminatory for a business with revenue above $50 million to create an employment requirement that would limit an employee's ability to express their religious views - unless the employer can show the condition is necessary to prevent"unjustifiable financial hardship"to their business.
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This has been referred to as the"Folau clause"after rugby player Israel Folau was terminated by Rugby Australia over an Instagram post suggesting gay people and others will go to hell.
Ina written submission,AIG reminded the government that businesses were legally obliged to prevent bullying and other behaviour that could impact the mental health of employees. This was not limited to conduct within the office.
"Employers also need policies to address out of hours conduct that has a sufficient connection with the workplace,"the group argued,using the example of a work Christmas function.