Your consultation obligations and AI

Your consultation obligations and AI

Latest News & Events

Your consultation obligations and AI

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We have been hearing a lot about the uptake of AI by corporations to automate tasks and reduce labour requirements with concerns about the loss of human job opportunities very much on the rise and the ACTU has called for special arrangements for consultation with workers on prospective implementation of artificial intelligence tools in their businesses……but are they needed?  

 

Consultation about major workplace change

Perhaps not?

You see all modern awards and enterprise agreements have consultation clauses which provide that, If an employer makes a definite decision to make major changes in production, program, organisation, structure or technology that are likely to have significant effects on employees, the employer has certain obligations. Here is what the Clerks – Private Sector Award 2020 says that the employer must do: 

(a) give notice of the changes to all employees who may be affected by them and their representatives (if any); and

(b) discuss with affected employees and their representatives (if any):

(i) the introduction of the changes; and

(ii) their likely effect on employees; and

(iii) measures to avoid or reduce the adverse effects of the changes on employees; and

(c) commence discussions as soon as practicable after a definite decision has been made.

38.2 For the purposes of the discussion under clause 38.1(b) , the employer must give in writing to the affected employees and their representatives (if any) all relevant information about the changes including:

(a) their nature; and

(b) their expected effect on employees; and

(c) any other matters likely to affect employees.

38.3 Clause 38.2 does not require an employer to disclose any confidential information if its disclosure would be contrary to the employer’s interests.

38.4 The employer must promptly consider any matters raised by the employees or their representatives about the changes in the course of the discussion under clause  38.1(b) .

38.5 In clause 38 significant effects , on employees, includes any of the following:

(a) termination of employment; or

(b) major changes in the composition, operation or size of the employer’s workforce or in the skills required; or

(c) loss of, or reduction in, job or promotion opportunities; or

(d) loss of, or reduction in, job tenure; or

(e) alteration of hours of work; or

(f) the need for employees to be retrained or transferred to other work or locations; or

(g) job restructuring.

What happens if an employer does not consult or comply with the clause

Because it is a matter that is in the award, it is subject to the disputes settlement procedure in the award and accordingly employees and/or unions could lodge disputes with the Fair Work Commission for conciliation or arbitration of such a dispute.

What it all means

Firstly, let’s be clear, regardless of how you contract them, most employees have award coverage and therefore award consultation provisions will apply to most workers, especially those below executive and professional levels (although some awards cover some of them too).

So, if you are introducing changes with AI that will have an impact on jobs or roles or training or the other elements mentioned in the award clauses, start with what your award obligations say.

Secondly, be proactive and make a sound business case for what you are proposing to do and, if you can, engage your people in the design and change management process.

Thirdly, try to find ways to mitigate the effects for people through retraining, redeployment, redesign of jobs and other creative paths. Maybe there can be a bit of job crafting around life balance for some people. Maybe there is someone who would like to retire but needs some support to do that. It isn’t one size fits all but you do need to be fair.

Fourthly, keep it honest and transparent with frequent and open communication…..with compassion.

Fifthly, make it a positive experience for people and find milestones and reasons to celebrate along the way.

Finally, managing change is complicated in psychology and process, in effectiveness and from a legal perspective. Get someone who know how to do this stuff well and progressively to help you. 

Please call us on 0438 533 311 or email enquiries@ridgelinehr.com.au if you want to explore how we might be of assistance with any issues like this in your business.

 

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Is the sky falling on salaries?

Is the sky falling on salaries?

Latest News & Events

Is the sky falling on salaries?

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There has been a lot of noise from employer bodies and conservative media about the Albanese government’s decision to legislate protections of penalty rates and overtime loadings but will it really mean the end of salaries as we know them and will that mean reduced flexibility and productivity as they claim? 

The issue

The Fair Work Amendment (Protecting Penalty and Overtime Rates) Bill 2025 was introduced to Parliament last week.

It proposes amendments which would have the effect of:

  • ensuring that the specified penalty or overtime rates in modern awards cannot be reduced; and
  • closing loopholes in the modern awards safety net that allow employers to “roll up” penalty and overtime rates into a single rate of pay that doesn’t fairly compensate award-reliant employees for remuneration they would have otherwise received.

The employer reaction

A couple of headlines about the federal government legislation to protect penalty rates caught my eye:

– HR Daily: “Penalty rates Bill a “backwards step” for employers”; and
– Dynamic Business: “Labor blocks business flexibility with new penalty rate laws”

Sounds like life will get tougher for employers, doesn’t it?

The truth

No, it won’t……..other than for businesses which were planning on reducing costs by reducing workers’ wages via cuts in penalty and overtime rates.  

Employers are already required by law to ensure employees are paid at least what they would be entitled to under any applicable industrial instrument ie a modern award or enterprise agreement.  

That includes penalty rates and overtime loadings. You can’t contract out of them but you can repackage them in individual flexibility agreements, common law contracts or enterprise agreements provided that employees are better off financially than they would be if the award was literally applied.

The amendment actually notes that it is about: “a single rate that doesn’t fairly compensate award-reliant employees for remuneration they would have otherwise received.” So it is saying you can’t pay people less than they would be entitled to under all of the monetary provisions of the award that covers them.

The explanatory memorandum to the bill also states that individual flexibility agreements and enterprise agreements are still available for compensating for setting off entitlements like overtime and penalty rates subject to satisfaction of the Better Off Overall Test ie the employee has to be better off under the agreement.

What it all means

This has been triggered by an application from an employer association to have an award varied to allow for exclusion of penalty and overtime rates via a flat fixed overboard payment.

Sadly, there are countless cases of employers underpaying workers by implementing just these sorts of arrangements via contracts or agreements which do not adequately compensate them based on the work that they do, when they do it and the conditions in which they do it.

This legislation will just make the obvious obligations that employers already have irrefutable and strengthen the case of wage theft prosecutions for employers who don’t comply.

It won’t reduce flexibility or productivity – it will just preserve what are already legal rights but it will be legislatively explicit now. 

Please call us on 0438 533 311 or email enquiries@ridgelinehr.com.au if you want to explore how we might be of assistance with any issues like this in your business.

 

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

You’re kidding me …..

You’re kidding me …..

Latest News & Events

You’re kidding me …..

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Employers might like to think that what happens with an employee outside work is of no concern to them and they have no responsibilities in that regard but is that totally true?

The issue

Last week, a client called me to enquire about what rights they had in relation to an employee who had failed to attend for work, failed to notify them and failed to take the call or respond to their call to his mobile phone.

When I delved down into the situation, I learned that:

  • the business has more than 15 staff
  • the employee is a young man who has completed an apprenticeship with them and been with them for about 4 years 
  • another of his family members with whom he lives also works in the business
  • the employee would normally come to work with that other family member who did come to work that day and told the employer that this employee was still in bed
  • it was not characteristic for the employee to do this and it hadn’t happened before
  • they had noticed a deterioration in his attitude and had to speak with him about his performance recently
  • things were a bit quiet for the business
  • there was no record of any disciplinary action eg no formal warnings or anything for that sort
  • they didn’t have any disciplinary procedure

So what advice should I have provided?

Being a large business employer brings procedural responsibilities

As much as we might think that the 15 employee threshold for a business to be considered a large business employer under the Fair Work Act 2009 is grossly unfair (which it is), those are the rules and we have to live with them.

This means that the employer in this case has to be much more conscious of going through the right process in any actions that they might take against an employee than a small business employer would. Those processes need to be fair and provide the employee with the opportunity to respond to any allegations made against them and any actions proposed plus decisions need to be evidence-based – on the balance of probabilities – if they are going to be defensible in the event of a formal complaint being made eg of adverse action or unfair dismissal.

There is now also the added factor of psychosocial hazards which include “poor organisational justice”.

 There was a vulnerability here because the employer had neither the policies and procedures nor the experience and skills to be able to deal appropriately with this issue in a demonstrably fair way.

Where the external environment comes in

I made note of the fact that the employer had said that this hadn’t happened before with this employee but they had noticed a deterioration in his attitude of late. I then asked whether they had any knowledge of anything going on in his life that might account for that either directly or through the other family member that worked with them.

This didn’t draw a great reaction – there was an immediate protest along the lines of: “You’re kidding me! Employers can’t be responsible for what happens with employees outside work, they have a job to do and they either turn up and do it or they can go.”

Well, I had to say: “sorry but it isn’t that simple”.

What is happening with an employee outside work can impact on:

  • the employee’s state of mind and physical, emotional and mental health and
  • their related fitness to attend for work and to perform their duties to the desired level and 
  • the employee’s attendance for work and
  • their relationships at work and outside work plus
  • there could be things going on at work which are also having an impact. 

Of course, I told her that she isn’t responsible for the employee’s behaviour outside of work but I also said that she needed to take into account factors that might be affecting his attitude and performance whether they were work-related or not.

This is especially the case when there had been a noticeable change in the employee’s attitude and behaviour, there hadn’t been any such problems in the past and no record of disciplinary action. I told her to be curious and find out what has caused that.

That gives the opportunity to deal with what the real underlying problems are rather than just treating the symptoms (ie deteriorating attitude and unnotified absence). Then you can hold the employee accountable for whatever commitments flow from that.

We also know that sometimes an employee is having a tough time in life and by being curious and non-judgmental, we might find out something that is important – like a domestic violence situation that the employee might need help with. 

Bottom line – approaching these situations with curiosity and kindness will deliver much better results than just disciplining people.

Please call us on 0438 533 311 or email enquiries@ridgelinehr.com.au if you want to explore how we might be of assistance with any issues like this in your business.

 

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

When future lies elsewhere

When future lies elsewhere

Latest News & Events

When future lies elsewhere

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Do you have someone who is a valuable employee but you know it is only a matter of time before they start looking for opportunities in greener pastures for their career growth? How do you deal with that?

Last week, a client asked me about whether they should be doing “Stay Interviews” with their people as distinct from “Exit Interviews”. It is an interesting question and it provided the stimulus for this blog. 

My lived experience

There have been three times in my working life when, upon announcing my resignation to take up a new career opportunity, my boss responded: “Why are you leaving ? We have great plans for you!” And I said: “Sorry but you forgot to tell me about them.”

If we had had those conversations, I might well have been happy to stay and explore the opportunities where I was…..or I might have elected to move on anyway because the opportunities and my needs were not a match.

In either case, we would have both known where things stood and we could plan accordingly with the benefit of that knowledge.

The Reality

The reality for most organisations is that they do not do staff performance and development very well. There might be annual reviews that can feel more like a transaction that we are contractually obliged to complete (ie to tick the box) than a meaningful process for planning and delivering on performance and development goals and job requirements.

Even those which do performance appraisals reasonably well can fall Ito the trap of treating them as an annual event rather than as part of a continuous improvement and engagement process. 

And even where the systems might in theory be appropriate to the exercise, too often managers are not properly trained and equipped to do them or provided with adequate time and prioritisation to get it done properly.

This begs the question of what value the employee gets from the process.

And, in so far as an employee who might be at risk of leaving, their manager might not know (or even not want to know). And sometimes people are so busy in their own world that they can’t see outside that.

So there are all sorts of reasons why a disenchanted employee could fly under the radar and surprises when they say “I’m going”. 

What should happen?

A skilled and  effective manager should be able to have open conversations with their team members about their individual performance and wellbeing not just in their current role but beyond that too.

You should know what the employees’ strengths are and where their future career path is likely to take them.

This should involve an understanding of how far the organisation can support that employee’s career path and where that is likely to end.

For this to happen, you need to be having regular conversations about all of that and have a plan for the employee to execute agreed actions with your support – that can include looking at alternative jobs or projects in the organisation that will help both employer and employee and it can also be about how you can support the employee to take the next step in their career outside your organisation.

The quid quo pro for the employee is that, in return for your support for their career development, they will assist you with succession of their current responsibilities to others

It is all about honesty, transparency and collaboration.

About Stay and Exit Interviews

My ideal is that these are just part of the ongoing performance and development management process through a continuous coaching model rather than stand alone events.

The “Stay” bit is just part of the ongoing conversation in your catchups or is programmed as a specific point of discussion at some stage in the process.

The “Exit” piece can be the final conversation in that process.

Perhaps you want to have an independent person or HR to have a conversation with the exiting employee to get some distance and assure transparency. I get that.

Sometimes, the answers to those questions lie in the reasons that you want to do them………and sometimes they are the very reasons why you shouldn’t do them. I’ll leave that question with you to have a think about.

If you are looking at better ways for you to uncover improvement opportunities with your people practices and culture, that is something that we can help you with.  

Please call us on 0438 533 311 or email enquiries@ridgelinehr.com.au if you want to explore how we might be of assistance.

 

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH

Is this the death knell for labour hire?

Is this the death knell for labour hire?

Latest News & Events

Is this the death knell for labour hire?

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Does the Fair Work Commission Full bench decision on “same job, same pay” and Regulated Labour Hire Arrangement Orders pose a threat to viability of labour hire providers?  

“We are satisfied that the evidence does not establish that the work of employees of OS Production and OS Maintenance involves the provision of an identifiable and discrete service to BMA as distinct from the supply of the labour of those workers to work in or as part of the business of the BMA.” 

And, with those words, a Full Bench of the Fair Work Commission determined that 2,200 labour hire workers working on 13 Queensland mining sites should get an average wage increase of about $30,000 per annum.

About “Same Job, Same Pay”

The Albanese Government introduced the Same Job Same Pay legislative changes specifically to combat organisations which had enterprise agreements with high wages and outsourced their labour requirements to reduce labour costs. They did so by using a labour hire organisation to employ their workers rather than directly employing them.

The “Same Job, Same Pay” amendments enable applications to be made to the Fair Work Commission to have the terms of the host’s enterprise agreement apply to the labour hire workers.

What that means is that, if such an application is successful, labour hire becomes a much less attractive commercial option as the host would be charged by the labour hire provider for the wages of labour hire workers at the same level that they would have to pay if they employed these people directly plus the labour hire provider’s on costs and service fees and profit margin.

Does this mean the end of labour hire?

Absolutely not.

“Same Job, Same Pay” only.affects circumstances where the labour hire firm’s customer has an enterprise agreement that would cover employees doing the same sort of work as the labour hire workers.

So for the vast majority of businesses, this is nothing to worry about – you can still use labour hire if you want to.

However, there is no question that businesses in the space that the “Same Job, Same Pay” changes are designed to address played a key role in the growth of labour hire as an alternative labour sourcing option.

So labour hire businesses which are heavily invested in that space are likely to feel the full impact of this decision.

Please call us on 0438 533 311 or email enquiries@ridgelinehr.com.au if you want to explore how we might be of assistance.

 

 

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

PARTNER LINKS

TELL US WHAT YOU NEED HELP WITH