the fair work act and your station cbaa conference, brisbane 20 november 2009 michael pegg
TRANSCRIPT
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The Fair Work Act and Your Station
CBAA Conference, Brisbane 20 November 2009
Michael Pegg
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Managers manage
Manager
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Outline
1. Contracts2. State and federal systems3. National Employment Standards4. Awards & Agreements5. Unfair dismissal and other adverse
actions
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Common Law Contract of Employment
• Intent • Offer of work• Acceptance• Consideration ($) in exchange for
work• Employee vs Volunteer
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Rights and Responsibilities
Employer Employee
Provide work Obediance - Work as directed
Pay Competence & care
Safe workplace Work safely
Good & considerate Good faith – Honesty, loyalty & cooperation
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State and Federal Systems
• Historically complex mix of systems• Got more complex in 2006 –
“Corporations power”– Non profit community organisations – Trading? Incorporated?
• Moving to national system 2010-2011?
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State Referrals
• In 1996, Victoria referred some of its powers to make laws about IR to the federal parliament– Consequence is no state system– Avoid jurisdictional complications because
corporation status not relevant
• Qld, NSW, Tas, and SA are referring in 2010, subject to Senate passage of federal legislation
• WA has decided not to refer
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State ReferralsLocation Constitutional
trading corporation
Not Constitutional trading
corporationACT, NT, Vic Federal system Federal system
NSW, Qld, SA & Tas Federal system State system 2009
Federal system from 1 January 2010; transitional arrangements
WA Federal system State system
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Key elements of Fair Work
• National Employment Standards (NES)• Modern awards• Agreements• Termination of employment & adverse
actions
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The Hierarchy of Conditions
NES
Modern award Conditions Modern award Pay
Collective Agreement
Contract of employment
HR Policies
+/- +
+
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National Employment Standards (NES)
• Basic entitlements• Take effect 1 January 2010• Enshrined in legislation and override
awards and agreements (except some pre-reform agreements)
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NES – existing federal standards
• Max working hours – 38 hour week plus reasonable additional hours
• Annual leave• Personal/carer’s & compassionate
leave• Parental leave• Plus new provisions…
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NES – new provisions
• Public holidays• Long service leave• Flexible work arrangements for parents of
pre-school children• Community service leave (emergency,
jury)• Notice of Termination & Redundancy pay
(>15 employees)• Fair Work Information Statement
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NES – Selected issues (1)
• Annual leave – Cashing out (if allowed by award/agreement)
provided 4 weeks balance maintained– Pro rata accrual after 1 month
• Personal/Carer’s leave– 10 days personal/carer’s, plus 2 days per
occasion compassionate– Modern awards may provide cashing out
provided 15 days balance maintained
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NES – Selected issues (2)
• Parental leave – 12 months plus right to request further 12
months unpaid leave
• Flexibility requests– Includes pre-school children & disabled
children under 18 yo– Written request– 21 days to respond in writing - reasonable
business grounds
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NES – Selected issues (3)
• Community service leave– Emergency management activity
• Notice, evidence• Unpaid
– Jury service• Based on common award provisions • Paid (less jury pay)• Up to 10 days
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Award Modernisation
• Fewer awards, industry-based and common rule
• Operate by common rule from 1 January 2010
• Transitional provisions• Most federal system employees covered by
an award (even if previously award free)• Some exceptions eg if paid above $108,300
(indexed)
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Content of Modern Awards
• Build on NES, with industry specific standards,• Plus a range of other items such as:
– Wages, allowances and penalty rates– Types of employment– Superannuation– Industry specific arrangements for working hours
• Flexibility arrangements on better off basis• Consultation, representation and disputes
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Which Modern Awards?
Determined case by case – Possibilities (Subject to finalisation by end of 2009):
• Clerical– Office staff and managers
• Broadcasting and Recorded Entertainment??– Technicians, engineers??
• Commercial Sales??– Sponsorship?? (note limits on commissions)
• Miscellaneous
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Agreements
• “Better Off Overall Test”(BOOT)• Most prohibited content no longer prohibited• Individual flexibility and consultation on
change• Notification time - 14 days to advise
representational rights, prior to 7 day approval period
• Good faith bargaining• Multiple business agreements and “low paid
bargaining stream”
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BOOT
• BOOT – Employees better off overall compared to a “reference instrument”
• Reference Instrument – Award that applies– Relevant state long service leave
legislation– In conjunction with NES
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Bargaining Options
• Rely on award– May be easiest option if limited
resources– Modernisation– Recruitment & Retention
• Common law contracts or policies for over award conditions– Easier than collective bargaining
• Collective Bargaining
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Unfair Dismissal
Remedy for harsh, unjust or unreasonable termination of employment
Remedies include: Reinstatement Compensation of up to 26 weeks pay
Historically, about 90% of claims are settled informally
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Unfair Dismissal - Exemptions
From 1 July 2009, all federal employees able to lodge claims except:
Non-award employees paid >$100,000 (2007 dollars indexed);
Employees with less than 6 months service, provided that for a small employer (fewer than 15 EFT employees until 1 January 2011, then just 15 employees), 12 months service is required;
Other standard exemptions eg short term casuals Genuine redundancy
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Genuine Redundancy
• Job is no longer required to be done by anyone because of changes in operational requirements
• Obligations to consult, under award or enterprise agreement, have been complied with
• It was not reasonable to redeploy – positive obligation to explore options
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Process – Unfair Dismissal
• Federal claims need to be lodged within 14 days of dismissal
• FWA emphasis on speedy and informal resolution with >80% settled at conciliation
• Employer may be represented by employer organisation (eg by Jobs Australia), but private lawyers need to seek leave to appear
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Natural Justice
• State allegations – valid reason• Fair investigation• Opportunity to respond/explain• Consequences made clear if not resolved• Right to representation (particularly if
termination considered)• Even if considering summary dismissal –
natural justice first
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Outcomes of Disciplinary Process
Not determined until after process
• No further action – best case scenario• Informal warning• Written warning (with review period if
performance issue)• Termination with notice, or without notice if
serious misconduct – worst case scenario– indicator of possible problem with recruitment, selection,
training, performance management or organisational culture
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Alternative Remedies
• Unlawful termination - Prohibited reasons such as: – Temporary absence due to illness or injury– Race, sex, political beliefs etc– Failure to provide required notice
• Onus on employer to rebut claim• General protection against adverse action,
including prior to termination• Also - Anti- discrimination, breach of contract
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Adverse Actions
• Remedy from Fair Work Australia if subject to any adverse action on prohibited (ie discriminatory) grounds
• Includes adverse actions such as – Refusal of training opportunities– Changes in hours– Refused promotion
• Similar to existing anti-discrimination laws, but potentially faster remedies
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Managing Change
Employer Rights• to determine how job is done and by
whom• to decide how to run their organisationConstrained by• Industrial and other legislation• Employee responses• Management strategy
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Key Elements of Process
• Information• Consultation – before finalising decisions
about structure– Modern award requirement and – Evidence based decision making
• Explore alternatives to termination, such as reduced hours, retraining, redeployment
• Fair process for selecting retrenchments• Appropriate support for affected
employees
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Contact Jobs Australia
• Michael Pegg– Phone: (03) 9349 3699– Phone: (1800) 060 098– Fax: (03) 9349 3655– Email: [email protected]