Adverse Action

4th Australian Workplace RelationsSummit 2010 Navigating the Industrial LandscapeDay Two Wednesday 9th June 201011.15 am to 11.50 am

8th & 9th June 2010Harbours Edge Events Centre,Darling Harbour

Adverse ActionPresenterBradley J Beasley, LLM, LLB, Grad Cert Legal Practice

Legal Practitioner of the:

Supreme Courts ACT, NSW; and

High Court of Australia

Overview1.Understanding the impact adverse actions can have on management decisions

2.Defining adverse actions in terms of:

(a)Employer protected rights

(b)Industrial action

3.Reducing liabilities for adverse actions

Overview conts336 of the Fair Work Act 2009 (the FWA) address the objects in broad terms, they are to:

Protect workplace rights

Protect freedom of association

Provide protection from workplace discrimination

Provide effective relief for persons who have been:

Discriminated against,

Victimised; or

Adversely affected

Overview contS341 provides for the meaning of workplace rights and is quite broad. It applies where a person is:

Entitled to a benefit or has a recognised role

Able to initiate or participate in processes

Able to make a complaint

Able to seek an inquiry for compliance

These rights derive out of a workplace law, industrial instruments or a order made by an industrial body

Overview contThe jurisdiction is quite wide net capturing not only those who are corporations but those dealing in trade and commence and those working in a Territory.

See S338 (1) (d), (e) and (f), (2), (3), (4) of the FWA

1. Understanding the impact adverse actions can have on management decisionsWhen communicating

When employing new staff

When dealing with:

Staff

Contractors

Industrial Associations

A Dispute

Remedies

Penalties

When Communicating

Communication is essential as perceptions are central to this course of action as the FWA addresses:

Advising

Encouraging

Inciting

Action taken

Action threatened

Action not taken see s338 (c)

Organising Action see s342 (2) (b)

Communication can be direct or indirect in effect see s340 (1) and (2)

When employing new staff

Prospective Employees

Communication is equally important when employing new staff as they are taken to have workplace rights, see s341 (3) and see s342 (1) Item 2.

However more so if someone is perceived as coercing another or a third person to employ or not employ a particular person, see s355 (a).

When dealing with:StaffContractorsIndustrial Associations

S342 provides circumstances when adverse action is taken, in board terms they are:

When dealing with:

Staff

Item 1

An employer taking action against an employee by:

Dismissing them; or

Injuring their employment; or

Altering their position to their prejudice; or

Discriminating between employees.

When dealing with:

Staff cont

Caution must be taken when dealing with staff to avoid allegations of:

Coercion when it comes to workplace rights or how they may be exercised see s343

Undue influence or pressure with respect to agreement making, guaranteed annual earnings and deductions, see s344

Misrepresentations concerning workplace rights or how they will or may be exercised see s345

Entering into sham arrangements see s357

When dealing with:

Prospective Staff

Item 2 Where a prospective employer:

Refuses to employ a prospective employee; or

Discriminates against the prospective employee in the terms or conditions of employment.

When dealing with:

Contractors

Item 3

Where the principal enters into a contract for service with an independent contractor (the contractor) or a person employed or engaged by the contractor.

The principal affects the contractor by:

Terminating the contract; or

Injuring the terms and conditions of the contract; or

Alters their position to their prejudice; or

Refuses to make use of, or agree to make use of their services; or

Refuses to supply, or agree to supply, goods or services to them.

When dealing with:

Contractors cont

Note: also see

Item 4

Where the principle enters into arrangements through a second contractor to adversely affect the first contractor.

Item 6

Where the contractor takes adverse action against the principle.

When dealing with:

Industrial Associations

Item 7

Where an Industrial Association, or an officer or member of an Industrial Association, engages in the following against a person:

Organises or takes industrial action; or

Takes direct or indirect action that is prejudicial to the:

Employment or prospective employment; or

Contractors contract for services; or

By imposing a penalty, forfeiture or disability of any kind against a member other than any money legally owed to the association by the member.

A Dispute

Division 8 Compliance

Subdivision ASubdivision BA person dismissed or their union can bring an action

An action must commence within 60 days and may be extended

An application fee must be lodged

FWA conducts a conference

FWA will issue a certificate if the dispute cannot be resolved

FWA must advise the parties on reasonable prospects for success

An application must then be made to the court within 14 days

If a person cannot make an application under Subdivision A, they may make it under this subdivision to FWA

An application fee must be lodged

FWA must advise the parties on reasonable prospects for success before proceeding to court

A Dispute contCosts

Costs orders may be made against lawyers and paid agents where the other parties has incurred unreasonable costs due to the solicitors or agents conduct of the matter

An application for costs orders must be made within 14 days of the matter being finalised by FWA

Civil penalties apply for a breach of the costs order

Remedies

Remedies may include:

Preventative injunction

Reinstatement

Uncapped compensation

Orders as the courts see fit

Penalties

Part31--General protections Item 11

340(1) 340(2) 343(1) 344 345(1) 346 348 (349(1) 350(1)

350(2a)351(1) 352 353(1) 354(1) 355 357(1) 358 359

a person affected by the contra

an industrial association

(c) An inspectorThe Federal Court;

(b) the Federal Magistrates Court

60 penalty units

2.Defining adverse actions in terms of:(a)employer protected rightsAction

Conduct

Prospective Employees

Transfer of Business

Standing Down

Organisational Change

Discrimination

Termination of Employment

ActionAction can include an omission see s12 of the FWA

S338 (1) (b) defines action against a constitutionallycovered entity:

...that affects, is capable of affecting or is taken with intent to affect the activities, functions, relationships or business...

ConductConduct of the action is addressed by s338 (1) (c) to include the following:

Advising, encouraging or inciting, or ... with intent to coerce, a constitutionallycovered entity:

(i)to take, or not take, particular action in relation to another person; or

(ii)to threaten to take, or not take, particular action in relation to another person...

Prospective EmployeesAn employer may make a conditional offer subject to guarantee annual earnings to a prospective employee.

See s341 (4)

Transfer of BusinessOn a transfer of business the employer may refuse to employ a prospective employee if he or she would be entitled to a benefit.

See s341 (5) and Part 2-8 Transfer of Business

Standing DownThe employer may stand down staff if they are engaging in industrial action or in other circumstances where permitted.

See s342 (4)

Organisational ChangeAs long as the employer consults and follows any change management provisions in an industrial instrument there is no impediment for an employer who is genuinely responding to economic, technological, structural or similar nature change.

See Part 3-6

DiscriminationThe employer does not offend the Act if the employee cannot fulfil the inherent requirements of the particular job

Also on religious grounds if the employer is acting in good faith and to avoid injury related to those teachings.

See s351 (2)

Termination of EmploymentAn employer may terminate the employment of an employee on genuine grounds related to:

Poor performanceMisconductSerious MisconductIllness that is not temporary

2.Defining adverse actions in terms of:(b)industrial actionJones v Queensland Tertiary Admissions Centre Ltd (No 2) [2010] FCA 399 (29 April 2010).

3.Reducing liabilities for adverse actionsBarclay v The Board of Bendigo Regional Institute of TAFE [2010] FCA 284

ConclusionEmploy Competent StaffCommunicationConsultationTransparencyThoroughnessDocumentObtain Advice

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