Award Coverage And Entitlements

Determining award coverage and entitlements is a critical issue for many employees and employers, often arising when there is uncertainty about which modern award or enterprise agreement applies to a particular role. Understanding these legal frameworks can be intricate, with various factors influencing how employment terms and conditions are governed. If you find yourself questioning whether a modern award or enterprise agreement covers your employment or need clarification on your entitlements, seeking expert legal advice from Bentham Sydney Employment Lawyers is essential. 

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When Does A Modern Award Cover Employment?

In Hughes v Converge International Pty Ltd [2023] FWC 2985, the Fair Work Commission delved into critical issues surrounding the coverage of modern awards and enterprise agreements. This case offers valuable insights into how these coverage questions are determined and highlights the evidentiary responsibilities of parties involved. This article will explore the principal purpose test for award coverage, the significance of job duties versus titles, and the evidentiary onus in jurisdictional disputes.

The Principal Purpose Test

The principal purpose test is a fundamental tool used by the Commission to determine whether a modern award or enterprise agreement applies to an employee. As articulated in Zheng v Poten & Partners (Australia) Pty Ltd [2021] FWCFB 3478, the test involves assessing the nature of the employee's work and the circumstances of their employment to ascertain the primary purpose for which they are employed.

In the case of Carpenter v Corona Manufacturing Pty Ltd (2002) 122 IR 387, the Full Bench clarified that it is not merely the quantity of time spent on various duties that determines award coverage. Instead, a detailed examination of the work’s nature and the employee’s circumstances is essential. For instance, a National Sales Manager whose responsibilities are primarily managerial and only secondarily related to sales would not fall under an award designed for sales roles, as the principal purpose of their employment is managerial.

Similarly, in Kaufmann v Jones Lang LaSalle (Vic) Pty Ltd [2017] FWC 2623, Deputy President Gostencnik emphasised that award coverage hinges on the actual duties performed rather than the employee’s job title. Despite holding the title of Regional Director, the applicant's role primarily involved sales activities, and hence, award coverage was determined based on these duties rather than the title.

The BHP Coal Pty Ltd v CFMMEU [2021] FWCFB 197 case reaffirmed this approach, underscoring that the true nature of the employee’s work is the decisive factor in determining award coverage.

Evidentiary Onus in Jurisdictional Objections

The question of who bears the evidentiary onus in jurisdictional disputes has been another focal point. The recent case of Hughes v Converge International Pty Ltd [2023] FWC 2985 brought this issue into sharp relief. The Commission explored whether the applicant or the respondent carries the evidentiary onus when challenging jurisdictional objections related to unfair dismissal claims.

As established in Teterin v Resource Pacific Pty Ltd [2014] FWCFB 4125, the evidentiary onus refers to the obligation to produce sufficient evidence to raise an issue for determination. This concept was reiterated in Dickinson v Minister of Pensions (1953) 1 QB 228, where it was noted that the party asserting a claim carries the onus of proving it on the balance of probabilities.

In Hughes v Converge, the applicant, Mr. Hughes, argued that Converge bore the evidentiary onus to demonstrate that he was not covered by an award. Converge, on the other hand, contended that because Mr. Hughes earned above the high-income threshold, he bore the risk of failure and thus the evidentiary onus.

The Commission determined that the applicant, in this case, must provide a sufficient basis to establish that they are protected from unfair dismissal. This finding highlights the practical implications of evidentiary responsibilities in determining award coverage and jurisdictional issues.

Conclusion

The Hughes v Converge case provides crucial guidance on determining modern award and enterprise agreement coverage. The principal purpose test remains a key criterion in assessing whether an employee’s role falls within the scope of a modern award, focusing on the actual duties performed rather than the job title. Additionally, the case underscores the importance of understanding evidentiary onus in jurisdictional disputes, reinforcing the need for parties to substantiate their claims effectively.

Employers seeking to determine which Modern Award covers an employee's employment should contact Bentham Sydney Employment Lawyers for advice.

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Determining Industry Under A Modern Award

Determining whether your business falls within an industry identified in a Modern Award is a difficult task. This exercise was undertaken by the Federal Court of Australia in Australasian Meat Industry Employees Union v Dick Stone Pty Ltd [2022] FCA 512, where the Court addressed the definition and scope of a "meat processing establishment" under the Meat Industry Award. The award's definition included activities such as boning, slicing, preparation, and packing of fresh meat. Dick Stone contended that its establishment, which also handled distribution and storage of meat for a related company, Melrina, did not fit this definition as its primary concern was the wholesale sale of meat, not the processing.

Key Findings

1. Definition of "Meat Processing Establishment": The Court noted that the definition within the Meat Industry Award is broad and not limited to traditional abattoirs or boning rooms. It emphasized that the definition includes establishments where any one or more of the listed activities (boning, slicing, preparation, packing) are a predominant concern.

2. Construction of Terms: The Court rejected Dick Stone’s arguments that the definition implied a specific sequence or exclusive focus on primary production processes. The use of “any one or more of” and “or” in the definition indicates that an establishment could qualify as a meat processing establishment even if it did not conduct all activities in a specific order or sequence.

3. Context of the Award: The Court highlighted that the Fair Work Act requires awards to be understandable based on their plain language, without needing to delve into extrinsic material or historical context unless the language itself is ambiguous.

4. Role of Ancillary Activities: While Dick Stone argued that its processing activities were ancillary to its primary business of wholesale and retail, the Court found that the meat processing activities, although secondary to the primary sales function, still formed a significant part of the business.

5. Integration with Related Companies: The Court acknowledged the integrated nature of Dick Stone and Melrina’s operations but determined that Melrina’s activities, while part of the broader business environment, did not alter the fundamental nature of Dick Stone’s establishment.

6. Predominant Concern: Ultimately, the Court concluded that while Dick Stone's facility engaged in significant meat processing activities, the predominant concern of the establishment was the sale of meat products. The Court found that the processing activities were ancillary to the primary function of selling meat, akin to a large-scale butcher shop.

Conclusion

The Court was not persuaded that the Regents Park facility was a "meat processing establishment" under the award. The facility’s primary focus was on the wholesale and retail of meat, with processing activities being secondary. This decision reflects the Court’s interpretation that for an establishment to be classified as a meat processing establishment, processing activities must be the predominant concern rather than ancillary to a wholesale or retail function.

Employers seeking to determine whether their business falls within an industry identified in a Modern Award should contact Bentham Sydney Employment Lawyers for advice.

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Right To Disconnect Term For Modern Awards

On 23 August 2024, the Fair Work Commission (FWC) announced the finalisation of a new "right to disconnect" term for 155 modern awards. This decision, detailed in [2024] FWCFB 338, is part of a broader initiative to enhance work-life balance by allowing employees to disengage from work communications outside their designated working hours.

The introduction of the right to disconnect term is required by clause 111C(2) of Schedule 1 of the Fair Work Act 2009 (Cth), with the new provision taking effect on 26 August 2024. The term will be added as a new clause in most awards, following the hours of work clause, with a later application date of 26 August 2025 for small business employers.

What Is the Right To Disconnect? 

The "right to disconnect" allows employees to refuse work-related communications outside their designated working hours, except where it is legally required or necessary due to specific conditions like stand-by duties or emergency situations. This provision, established under Clause 12A and Section 333M of the Fair Work Act 2009, ensures that employees can disconnect from work outside their regular hours without facing adverse actions from their employer. The right takes effect on 26 August 2024 for most employers, with a later implementation date of 26 August 2025 for small business employers.

Employees and employers seeking to navigate the right to disconnect should contact Bentham Sydney Employment Lawyers for advice. 

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Got Questions?

Only if you have engaged in serious misconduct.

Serious misconduct is a severe breach of contract that justifies immediate dismissal without notice. This type of behavior significantly impacts the business or poses serious risks to the safety and well-being of colleagues.

Under typical conditions, an employer is required to provide written notice of termination, including the termination date, and may ask the employee to work through the notice period or, alternatively, provide payment in lieu of notice. However, when serious misconduct is involved, the employer is entitled to terminate the employment relationship immediately, bypassing the usual notice requirements.

Examples of serious misconduct include:

1. Theft or Fraud: Misappropriation of company property or engaging in fraudulent activities.

2. Dishonesty: Acts of dishonesty that undermine the trust essential to the employment relationship.

3. Intoxication at Work: Attending work under the influence of drugs or alcohol, which compromises safety or performance.

4. Criminal Conviction: Being convicted of a criminal offence that is incompatible with the employee’s role or duties.

5. Gross Negligence: Reckless disregard for one’s duties, resulting in significant harm or risk to the business.

6. Violent Behaviour: Engaging in physical altercations or threatening colleagues with violence.

7. Disobeying Lawful Directions: Repeatedly failing to comply with lawful and reasonable instructions from the employer.

8. Safety Breaches: Ignoring or violating workplace safety rules, putting oneself or others at risk.

9. Inappropriate Use of Confidential Information: Mishandling or misusing sensitive company data or trade secrets.

It is important to note that while employers have the right to dismiss for serious misconduct, the circumstances must be carefully assessed to ensure that the dismissal is justified. If you have been dismissed for serious misconduct, it is prudent to seek expert legal advice. A lawyer can help determine whether your dismissal was handled lawfully and explore any potential grounds for challenging the termination through a legal claim.

Yes, a workplace lawyer can play a crucial role in assisting with Fair Work Commission proceedings. Engaging a lawyer can provide you with the support and guidance necessary to effectively present your case and safeguard your rights throughout the process.

A workplace lawyer can help by:

1. Explaining Your Rights and Responsibilities: They can clarify your entitlements under the Fair Work Act and explain the obligations of your employer, ensuring you have a comprehensive understanding of your position.

2. Outlining Legal Options: A lawyer can assess the specifics of your situation and present you with various legal options, helping you choose the most strategic course of action.

3. Preparing Your Case: They can assist with the preparation of necessary documents, gathering of evidence, and formulation of persuasive arguments to support your claim or defence.

4. Representation and Advocacy: While there is no legal requirement to have representation in Fair Work Commission proceedings, a lawyer can represent you during conciliation, mediation, or a formal hearing, ensuring that your case is presented effectively.

5. Maximising Outcomes: With their expertise, a workplace lawyer can negotiate settlements or pursue remedies such as reinstatement, compensation, or other favourable outcomes, aiming to achieve the best possible result for you.

While it is possible to navigate Fair Work Commission proceedings without legal representation, the complexity of employment law and the high stakes involved make it strongly advisable to seek professional legal assistance. Experienced employment lawyers in Sydney are available to provide this support, ensuring that your case is handled with the utmost care and expertise.

Engaging an employment lawyer can be crucial at various stages of the employment relationship, particularly when navigating complex legal issues or disputes. Here are some key situations where seeking the expertise of an employment lawyer is highly recommended:

1. Negotiating and Developing Enterprise Agreements and Employment Contracts:

A. Drafting and Review: When creating or reviewing employment contracts or enterprise agreements, an employment lawyer can ensure that the terms are fair, compliant with the law, and protect your interests. They can assist in negotiating terms that are clear, enforceable, and minimise the risk of future disputes.

B. Ensuring Compliance: Employment laws and regulations are continually evolving. An employment lawyer can ensure that your agreements comply with the latest legal standards, thereby avoiding potential legal pitfalls.

2. Addressing Workplace Issues:

A. Breach of Contract: If there is a dispute regarding the terms of an employment contract, such as non-payment of wages, changes in duties, or termination of employment, an employment lawyer can advise on the best course of action and, if necessary, represent you in seeking remedies.

B. Discrimination and Harassment: If you face discrimination or harassment in the workplace, or if you're an employer dealing with allegations of such conduct, an employment lawyer can provide guidance on your rights and obligations. They can help you take the appropriate steps to address the issue, whether through internal resolution or formal legal action.

C. Unfair Dismissal: If you believe you have been unfairly dismissed, or if you're an employer considering terminating an employee, it is advisable to consult an employment lawyer. They can assess the situation, advise on the legality of the dismissal, and represent your interests in any resulting proceedings.

3. Resolving Disputes Without Litigation:

A. Mediation and Negotiation: An employment lawyer can assist in resolving disputes through mediation or negotiation, often achieving a settlement without the need for costly and time-consuming litigation. Their expertise can help ensure that any agreements reached are legally sound and enforceable.

4. Representation in Employment Tribunals and Courts:

A. Managing the Case: If a dispute escalates to an employment tribunal or the Fair Work Commission, an employment lawyer can manage the case on your behalf. They will handle the preparation of legal documents, gather evidence, and represent you during hearings, aiming to achieve the best possible outcome with minimal stress, time, and expense.
Preventing Future Issues:

B. Proactive Legal Advice: Consulting an employment lawyer before issues arise can be a proactive way to prevent future legal disputes. Whether you are setting up a new business, expanding your workforce, or implementing new policies, an employment lawyer can provide advice to ensure that you are compliant with legal obligations and best practices.

In summary, engaging an employment lawyer can be invaluable at various stages of the employment relationship. Whether you are negotiating contracts, addressing workplace disputes, or navigating complex legal issues, an employment lawyer can provide the expertise and guidance necessary to protect your rights and interests, potentially saving you significant time, stress, and expense in the long run.

As an employee in Australia, you are entitled to a range of protections and rights under the Fair Work Act 2009 (Cth). These include:

1. National Employment Standards (NES): The NES sets out 11 minimum entitlements that apply to all employees, such as maximum weekly hours, leave entitlements (including annual leave, personal leave, and parental leave), public holidays, and the right to request flexible working arrangements.

2. Right to a Fair Wage: You are entitled to receive at least the minimum wage as set by the Fair Work Commission, and if you are covered by an award or enterprise agreement, you may be entitled to higher pay and additional conditions.

3. Protection from Unfair Dismissal: If you meet the eligibility criteria, you have the right to challenge an unfair dismissal through the Fair Work Commission.

4. Protection from Discrimination and Harassment: You have the right to work in an environment free from discrimination, harassment, and bullying. Discrimination on the basis of age, race, gender, disability, and other protected attributes is unlawful.

5. Right to a Safe Workplace: Employers are required to provide a safe and healthy work environment. If you have concerns about safety, you have the right to raise these concerns without fear of retaliation.

Understanding your rights under the Fair Work Act 2009 (Cth) is crucial for ensuring that you are treated fairly and justly in your workplace. If you believe your rights have been violated, it is advisable to seek legal advice to determine the best course of action.

Workplace bullying occurs when an individual or group repeatedly behaves unreasonably towards a worker or a group of workers, creating a risk to health and safety. Bullying can take various forms, including:

1. Verbal Abuse: Insults, threats, or derogatory remarks aimed at an employee.

2. Physical Intimidation: Aggressive or threatening behaviour, such as physical gestures or actions meant to intimidate.

3. Exclusion: Deliberately excluding someone from work-related activities or social interactions.

4. Unreasonable Work Expectations: Assigning tasks that are impossible to complete or setting unrealistic deadlines.

5. Undermining Work: Consistently undermining someone's work performance or contributions.

If you are experiencing bullying in the workplace, you have several options:

1. Internal Resolution: Report the behaviour to your employer or human resources department, following your workplace’s procedures for handling bullying complaints.

2. Lodge a Complaint with the Fair Work Commission: If internal resolution is unsuccessful, you can apply to the Fair Work Commission for a stop-bullying order.

3. Seek Legal Advice: An employment lawyer can help you understand your rights, guide you through the complaint process, and represent you in any proceedings.

It is important to address workplace bullying promptly to protect your health and well-being. Legal avenues are available to ensure that the behaviour is stopped and that you are treated fairly.

Redundancy occurs when an employer no longer requires an employee’s job to be performed by anyone, usually due to changes in the business such as restructuring, technological advancements, or a downturn in business. If you are made redundant, it is important to understand your entitlements, which may include:

1. Redundancy Pay: Employees with at least 12 months of continuous service may be entitled to redundancy pay, calculated based on the length of service. The amount of redundancy pay is set out in the Fair Work Act or in your award or enterprise agreement.

2. Notice Period: Your employer must provide you with a notice of termination or payment in lieu of notice, depending on the circumstances of your redundancy.

3. Consultation: If you are covered by a modern award or enterprise agreement, your employer is required to consult with you before making a decision that may lead to redundancy. This includes discussing alternative options to avoid redundancy.

4. Alternative Employment: Your employer should explore whether there are other suitable positions available within the organisation or associated entities.

5. Job Search Entitlement: You may be entitled to paid leave during the notice period to attend interviews or other job search activities.

If you believe that your redundancy was not genuine or that you have not received your full entitlements, you may have grounds to challenge the decision. Seeking advice from an employment lawyer can help you understand your rights and explore your options for addressing the issue.