Are your contracts current, compliant and complete?

Are your contracts current, compliant and complete?

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Are your contracts current, compliant and complete?

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As we go through the biggest era of change in employment laws and modern awards that we have ever seen, it is becoming increasingly important to have written contracts that clearly set out the pay and conditions applying to each individual employee or contractor. Do yours? And are they current, compliant and complete? 

Why do you need written contracts?

When you engage someone to work for you, whether as an employee or a contractor, it brings into play a host of legal obligations covered by the Fair Work Act and a variety of other legislation and, in the case of employees, modern awards and, where applicable, enterprise agreements. 

There are many purposes that contracts serve:

  1.  They educate you about your legal obligations and can be a source of information for decision-making on issues that arise in the relationship with the employee or contractor.
  2. They clearly set out the nature of the relationship between you and the employee (be it full-time, part-time, casual or fixed term) or contractor.
  3. They provide details on any duties or obligations that the employee or contractor is required to satisfy in the relationship with you.
  4. They provide evidence of the employee or contractor acceptance of the pay and conditions as set out in the contract and, assuming the fairness of the contract, can be used in defence of any claim that might be made against you or your business.
  5. There have been around 70 changes in employment law and modern awards and the rules around employment and contracting have undergone an overhaul recently.

The gap between employee and contractor is progressively becoming more blurred so you also want clarity, especially if the individual is not covered by a company (Pty Ltd) structure.

What are the changes that affect contracts? 

Some of the significant changes that need to be considered in contracts are:

  1. New definitions of employee, casual employee and contractor
  2. Prohibition of pay secrecy provisions
  3. A new jurisdiction at the Fair Work Commission for disputes in relation to unfair contract claims
  4. New jursidictions for road transport contractors and gig workers
  5. The “right to disconnect” and associated award provisions
  6. Changes to rules in relation to annual shutdowns
  7. Revised casual conversion provisions
  8. New jurisdictions for dispute resolution at the Fair Work Commission regarding sexual harassment, requests for flexible working arrangements, requests for extension of parental leave and complaints regarding the right to disconnect

These are just a few of the issues that need to be considered in constructing contracts and their relevance may well vary according to the industry, business setting, occupation and seniority of the role in question. 

Other considerations

While under the changes that we are currently seeing, we are moving back to multi-factorial assessment of the true nature of a relationship (eg contractor or employee), the contract is still an important piece of evidence in determining such questions.

Remember that one size does not fit all and don’t just adopt a template that you got from somewhere else or that is the standard on the HR compliance system that you use. It is imperative that the contract is a fit with your business arrangements and with the individual concerned – ie ensure that they reflect the reality.

We have also seen a number of prosecutions of corporations in recent years for underpayment of wages related to employees being put on contracts with fixed salaries which did not provide adequate remuneration for the hours that those employees actually worked.

So, if you do want to put people on salaries or you wish to set off any award entitlements that might apply to an employee, you need to both be very specific in the contract about exactly which award provisions are being set off and compensated for by the remuneration provided for in the contract and you have to make sure that the employee is actually better off than they would be if the award was literally applied to their employment, pay and conditions.

Also a heads up if you have restraint provisions that the ACCC is currently considering whether restraint provisions should be regulated or, in some cases, abolished – so watch this space.

How we can help

We have been helping clients with employment contracts for over 20 years.

We can advise you on award coverage, terms in awards that affect remuneration or impose certain conditions and help you in structuring remuneration and benefits so that your offer is compliant.

We can help you to navigate all of the changes that are coming in so that your contracts are current.

And we can help you to decide the style of contract that you want in each case and what needs to go into them to make them complete for that particular circumstance.

If you would like to explore how we can assist you with employment contracts, call us on 0438 533 311 or email enquiries@ridgelinehr.com.au to arrange your free first consultation.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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TELL US WHAT YOU NEED HELP WITH

Why we call it people business

Why we call it people business

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Why we call it people business

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Human Resources Management is a business function developed in large organisations with large work forces where scale is important and, in most of those organisations,  policy, process and risk management are the priority. So does that work for SMBs? We don’t think so (in fact, we don’t think it works well in most organisations).      

A story from long ago

Early in my career as what was then called a Personnel Management practitioner, a very wise and loved boss of mine taught me a life lesson. Let’s call him Mike. It was that, if you are going to be successful in the field, you had to earn people’s trust. Mike spent a lot of time getting to know people and letting them get to know him. People came to Mike with all sorts of issues with confidence and he showed them that he was there for them by acting on them or advising them. They would even accept a “no” from him because it was Mike and they trusted him to be honest with them. From an organisational perspective, being informed about things happening out in the business equipped Mike to strategically deal with emerging issues before they became a problem and to lean in and provide support if someone was struggling with something at work or otherwise in life.

That is a lesson that I have used repeatedly in the work that I do.

When Mike moved on, the organisation’s first HR Manager replaced him and he liaised with senior management and issued instructions and policies from his office. People then came to me with their issues, saying “you’re not Mike but we trust you and you are all we’ve got”.

What is Human Resources Management?

According to Wikipedia:

  • “Human Resources Management is the strategic and coherent approach to the effective and efficient management of people in a company or organisation such that they help their business gain a competitive advantage”; and
  • HR professionals manage the human capital of an organisation and focus on implementing policies and processes.”

Not very inspiring, is it?

And the language is hardly engaging, is it?

And not very people focused either?

The concept that people are human resources to be managed is perhaps, in itself, dehumanising, don’t you think?

In too many organisations, HR is seen as the enforcer of corporate risk management via policies and procedures. That approach really sends a message that, rather than people being an organisation’s greatest assets in truth, they are seen as the organisation’s greatest risks.

And that is one of the reasons why HR doesn’t work as it was perhaps intended to – that, in the pursuit of risk management and legal compliance, organisations placed those above people.

What is people business?

In small to medium businesses, the primary driver of success is the quality of the people and the relationships between them and with other key stakeholders like customers and suppliers.

So, unlike traditional HRM, it is very human-centred and that is why we call it “PEOPLE BUSINESS” – it about how we get the right people in the right roles doing the right stuff in the right way so that they and the business flourish together.

Of course, we need some policy and procedures but they are designed to help people to perform and behave to the standards expected so that work is enjoyable and productive for everyone…..and of course there are legal compliance requirements that need to be dealt with and actions that need to occur in the event of non-compliances but they are the footnote rather than the headline.

We use our 4c model to help our clients with their PEOPLE BUSINESS:

  • Commitment – the fundamentals that deliver purpose and compliance
  • Capability – the tools and systems that enable good people practice
  • Competency – the skills and knowledge that deliver positive outcomes for businesses and people
  • Culture – the integration of all of that to deliver everyday employee engagement and high performance.

That is what PEOPLE BUSINESS looks like.

Conclusion

If you are an SMB, you need to assure your compliance with legal requirements but the way that you do that sends messages to your people and you want these to be the right ones.

It isn’t just about making people follow rules – it is about how you get them engaged and happy to follow the rules because they know that the rules are right and they want to be successful in their role and relationships at work.

If you would like to learn more about ways that we can help you with your PEOPLE BUSINESS, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

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

Has the penny dropped for you?

Has the penny dropped for you?

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Has the penny dropped for you?

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One of the most significant changes that has been introduced in the last few years is the new “positive duty” standard of compliance relative to sexual harassment, gender-based behaviour and psychosocial hazards. Current signs suggest that the “penny hasn’t dropped” with lots of organisations about what this really means. Has it dropped with you?

A positive duty means that we have to do things differently

Positive duties have been introduced for 3 reasons:

  1. We have real problems in our workplaces with mental health issues associated with psychosocial hazards and harm caused primarily to women by gender-based behaviour such as sexual harassment
  2. The existing “risk management” model of compliance commonly used by organisations doesn’t work and, in many cases, not only doesn’t help but aggravates the harm and
  3. It is not sustainable in terms of the harm caused to people and the associated costs in lost productivity and escalating health costs.

You see, putting out policies, telling people that they have to follow them and running education sessions on respect at work just isn’t enough.

We have been doing that for decades with issues like bullying and sexual harassment but have they made any real difference where it matters ie in changing behaviour so that they don’t happen in the first place? 

The simple answer to that is “no” as evidenced by the fact that these positive duties have been imposed because we need to do things differently. 

A timely reality check

Former Federal Sex Discrimination Commissioner, Kate Jenkins, conducted the national enquiry into sexual harassment which resulted in the Respect@Work Report,  introduction of the positive duty to prevent sexual harassment, victimisation and gender-based behaviours.

In an article on HR Daily, Ms Jenkins is reported as saying that:

  • many workplace managers told the inquiry that they were tackling sexual harassment through a policy, some training and a complaint procedure
  • organisational processes were primarily a defence mechanism
  • the focus of workplace leaders wasn’t on preventing sexual harassment but preventing complaints
  • for those who are trying to make people more comfortable complaining, her message was “if your focus is on asking people to complain about psychosocial hazard concerns, then your focus is not on preventing them”
  • Leaders should be asking why harassment is occurring and what can we do to change this
  • Of the 7 compliance standards in the Respect@Work Guidelines, leadership is the most important.

What she is essentially saying is that it is about action to change behaviour and that starts with commitment and action from the top. It is about making it real in your workplace culture and not just words in a policy or training session.

Has the penny dropped?

What should you do

Unfortunately, what we are seeing is a “risk management response” from most organisations and HR/WHS Consultants – they are writing new policies, running education sessions and telling people to behave which just perpetuates the problems that the positive duty is intended to address. Clearly, the penny hasn’t dropped.

As with any matter around people and culture, we encourage you to look at these things on 3 levels – organisational, team and individual – and please do that by engaging with your people in determining what the realities for your business and people are and covering off all of the bases. 

Remember it is about your business and your people so don’t just borrow or buy a policy statement from someone else and remember our 4C compliance model because unless you do all 4Cs, you are not truly compliant:

  • Commitment – the fundamentals that deliver purpose and compliance
  • Capability – the tools and systems that enable good people practice
  • Competency – the skills and knowledge that deliver positive outcomes for businesses and people
  • Culture – the integration of all of that to deliver everyday employee engagement and high performance.

We can help

We developed our 4C compliance model 20 years ago and that is how long we have been practising to that standard so it isn’t new for us. We could say that the law has caught up now but the truth is that, while positive duties have brought the flaws in the existing compliance models into sharp focus, we have known that they have been there all along.  

And that is because what we are dealing with is PEOPLE BUSINESS – it is about people and relationships.

We have put together blogs and accompanying explainer videos on each of the 14 psychosocial hazards in the Model code for managing psychosocial hazards at work published by Safe Work Australia. One of those covers sexual harassment. They are designed to give businesses an understanding of the sorts of questions you should be asking in your workplace to identify any issues that you might need to address. You can access them for free on the News Events page on our website and we encourage you to use them to do a preliminary risk assessment.

If you would like to learn more about ways that we help with this or any other HR issue, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

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

Closing loopholes no.2 – The Fair Work Commission and “Employee-like” workers

Closing loopholes no.2 – The Fair Work Commission and “Employee-like” workers

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Closing loopholes no.2 – The Fair Work Commission and “Employee-like” workers

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From 26/8/24, the Fair Work Commission (FWC) will have a new jurisdiction which includes the ability to set minimum standards for “employee-like workers” who perform work for a digital platform and will give those workers access to rights and powers that had previously been unavailable to them. This is part of the Federal Labor Government’s plan to address issues relating to the “gig economy”.

Who does it affect?

The first change being made is to define what an “employee-like worker” is as distinct from an employee and an individual contractor. A worker is considered “employee-like” if they meet two or more of the following characteristics:

  • They have low bargaining power
  • They have low authority over performance of work
  • They receive remuneration at or below the rate of employees performing similar work
  • Have any other characteristic prescribed by regulations

What are the changes?

Previously workers in this space had few rights but they will now have access to the following:

  •  Minimum standards –  A set of minimum standards can now be set to apply to these workers following application by a registered organisation representing employee like workers and their businesses, the Minister for Employment and Workplace Relations, or the FWC. There are limits to what can be included in Minimum Standards and the FWC can only include terms relating to penalty rates, minimum engagement and other similar matters if it is appropriate for the work being performed. Likewise they cannot include terms relating to overtime and rostering.
  • Collective bargaining – Employee-like workers will also be able to collectively bargain through a registered organisation representing them. These will be similar to enterprise agreements and will require the negotiating parties to consult and explain the terms of the agreement before they are approved by the FWC.
  • Unfair deactivation – Employee-like workers will now be able to apply to the FWC for assistance if they believe they have been unfairly de-activated from a digital platform. This will be available to employee-like workers who have been on a contract, or series of contracts, for at least 6-months with the digital platform.
  • Workplace delegates rights – Workplace delegates will now have additional protections while performing their duties and will have a right to reasonable communication with members of their employee organisation and anyone eligible to be members regarding any industrial relations concerns and they will also have a right to reasonable access to workplace facilities. There will additionally be a “Digital Labour Platform Deactivation Code” developed by the Minister of The Department of Employment and Workplace Relations to guide both sides on valid deactivations.

These changes are a significant departure from the current norm for businesses operating in this space. To assist businesses and employee-like workers with the transition, the FWC has set up a Regulated Worker User Group to engage businesses and employee-like workers and explain the changes and keep everyone updated on the progress of the implementation of said changes. Click here for more information.

If you need any assistance with this or similar matters, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

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

Closing Loopholes no. 2 – Unfair Contractual Terms

Closing Loopholes no. 2 – Unfair Contractual Terms

Latest News & Events

Closing Loopholes no. 2 – Unfair Contractual Terms

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From the 26th of August 2024 independent contractors will now have the ability to apply to the Fair Work Commission (FWC) to resolve disputes between themselves and principals in matters relating to unfair contract terms in service contracts.

The change has been brought in to provide independent contractors (who earn below the contractor high income threshold) with a more inexpensive and informal pathway to resolving these disputes.

What does the FWC consider in these cases?

The FWC will apply tests to the relationship between the contractor and the principal to determine whether or not there are any instances of an unfair contractual relationship. The dispute, however, has to be about a matter that would be considered a workplace relations matter if the contractor was an employee of the principal:

Here are some of the matters that could be considered by the FWC in these cases:

  • The relative bargaining power of the two parties;
  • Whether the contract is significantly imbalanced in favour of one of the parties;
  • Whether specific contract terms are necessary to protect the legitimate business interests of one of the parties;
  • Whether a contract term is harsh, unjust, or unfair on one of the parties;
  • Whether the remuneration for the parties to the service contract is less than other employees or contractors performing similar work;
  • Any other matters the FWC considers relevant.

If the terms of the contract fail to meet the above criteria then the FWC may either set aside the contract term entirely or change the terms of the contract in order for it to be compliant.

What should I do next?

If your business is one that uses contractors it will be important to review the contracts that you have in place to ensure that it doesn’t contain terms that would fail to meet the above terms. Likewise when developing new contracts they should be made with these terms in mind.

Additionally, while we have no practical understanding of how these disputes will be settled by the FWC at this stage it also possible that it could draw additional scrutiny as to whether the relationship is actually that of an employer and employee as opposed to contractor and principal.

For more information you can visit the Fair Work Commission website regarding this matter by clicking this link

If you need any assistance with this or any other related matter please don’t hesitate to contact us on 0438 533 311 or by emailing us at enquiries@ridgelinehr.com.au

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

How to manage the right to disconnect

How to manage the right to disconnect

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How to manage the right to disconnect

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From 26 August 2024, employers with 15 or more employees have to respect employees’ right to disconnect from work outside their contracted working hours. Smaller employers will have those obligations 12 months later. What does it mean for your business and what do you need to do?  

What is the right to disconnect?

Here is how it is described in the Fact Sheet published by the Department of Employment and Workplace Relations:

“The right to disconnect will inform how employers and employees interact outside  of working hours. The right does not prohibit employers from contacting their employees, nor does it prevent employees from contacting each other, including across time zones. Rather, the employee will be able to refuse to monitor, read or respond to contact, or attempted contact outside of working hours, when they are not expected to be working or paid to be working, so long as doing so is not unreasonable.” 

So it doesn’t prohibit making contact with employees outside their contracted working hours – it just provides that they don’t have to respond to such contact outside their contracted working hours other than in limited circumstances.

The real obligations on employers are to not unreasonably require someone to respond to contact after hours and not to penalise people for exercising their right to disconnect. 

Inclusion in modern awards

The Fair Work Commission has been tasked with inserting “right to disconnect” clauses in modern awards. 

The approach it is taking is to have a standard clause which is customised according to existing provisions in Awards which might have relevance to contact after hours such as standby or call back or roster change provisions. 

So you need to consider which awards cover your employees, what provisions they might have in regard to out of hours contact and how those provisions relate to your own operations.

It is also something that you will need to consider in enterprise agreements.

What do you need to do?

In our blog back in February on Managing disconnection from work, we noted that this really should not be that big an issue for most organisations so the first thing you should do is ignore all of the hype about it. 

Then you should undertake a constructive assessment of the effects for your organisation and your people by answering the following questions:

  • Are there any situations where employees in your organisations need to be responsive to contact outside their standard working hours for genuine operational reasons?
  • Are there provisions in a modern award or enterprise agreement which deal with the specific type or cause of contact eg someone being on standby or being called back or being contacted about a roster change or some other prescribed matter outside their standard working hours?
  • Are employees remunerated for making themselves available for contact outside working hours under the provisions of a modern award or enterprise agreement or otherwise under their contract of employment?
  • Do you have any employees who have flexibility in their hours and location of work and whose working hours might fall outside standard operating hours via a flexible working arrangement or agreement or by individual choice?
  • Do you have any protocols in place regarding out of hours contact for people who may be working outside standard working hours eg contact to other staff or external parties should only be via email with the scheduling function used to delay transmission until the start of the following working day?
  • Do you have any protocols in place with external parties in relation to their contact and their response expectations with your staff outside standard working hours?
  • Do any of your people have to operate across timezones which might cause communications to occur outside an employee’s standard working hours?
  • Do any of your managers unreasonably or unnecessarily send communications to their people outside their standard working hours, expecting them to respond outside those hours?
  • Do any external parties unreasonably and unnecessarily send communications to your people outside their standard working hours, expecting them to respond outside those hours?
  • Do you have people who you know will respond to out of hours contacts even if you don’t want them to?
  • Do you deal with out of hours contact requirements in your contracts of employment?
  • Do you verify adequacy of remuneration having regard to out of hours contact requirements where an employee is expected to respond to specified contacts?
  • Do you deal with out of hours contact happenings in your performance and development conversations?
  • Do you have a properly structured and communicated “Life balance policy” which includes details on the organisation’s expectations and processes for management of out of hours contact and the employee right to disconnect? 

Other tips

As with any matter around people and culture, we encourage you to look at these things on 3 levels – organisational, team and individual – and please do that by engaging with your people in determining what the realities for your business and people are and covering off all of the bases. 

Remember it is about your business and your people so don’t just borrow or buy a policy statement from someone else and remember our 4C compliance model because unless you do all 4Cs, you are not truly compliant:

  • Commitment – the fundamentals that deliver purpose and compliance
  • Capability – the tools and systems that enable good people practice
  • Competency – the skills and knowledge that deliver positive outcomes for businesses and people
  • Culture – the integration of all of that to deliver everyday employee engagement and high performance.

How we can help?

We can help you to get the right answers to all of the questions that we have said you need to be asking in determining how your business is going to responsibly manage your employees’ right to disconnect.

We can advise you on remuneration in line wth award provisions and we can be-you with policies and employment contracts as well as advices to ay “problem individuals” who might need to modify their habits so as not to interfere with other employees’ right to disconnect.

If you would like to learn more about ways that we help with this or any other HR issue, please call us on 0438 533 311 or email us at enquiries@ridgelinehr.com.au.

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