Owner Drivers and Forestry Contractors Act

Owner Drivers and Forestry Contractors Act

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Owner Drivers and Forestry Contractors Act

truck driving at night

 The Owner Drivers and Forestry Contractors Act 2005 (Vic) was made to ensure that small business Owner Driver and Forestry Contractors could operate fairly and competitively in a market where they could be very commercially dependent on larger companies that would contract them. Those large customers could potentially take advantage of a lack of protections and regulation in the industry to the detriment of their smaller suppliers in the absence of the Act. We go over how the legislation provides some protection in this article.

WHO DOES IT COVER?

For the purpose of this legislation an Owner Driver is considered to be a sole trader, non-public company or partnership that transports goods using up to three vehicles with those vehicles being supplied by the owner with at least one of those vehicles operated by the owner.

It also applies to contractors involved in the harvesting and haulage of forestry products.

HOW DOES IT PROTECT THESE SMALL BUSINESSES?

The three main ways in which the Owner Drivers and Forestry Contractors Act help businesses navigate the industry are:

The Victorian Owner Drivers/Forestry Contractor Information Booklet

This booklet is a tool that helps owners of these businesses run successfully in the industry by outlining how a business should operate. Some of the areas that it covers include:

  • How Owner Drivers should be engaged by Hirers
  • Contract requirements
  • Dispute resolutions between Owner Drivers and Hirers
  • How an Owner Driver business should run on a basic level from business planning, tax and insurance, and record keeping requirements as well as many other areas.
  • Covers the laws that apply to the Industry

This is only a small selection of what it covers, click on this link to read the full handbook – Victorian Owner Drivers/Forestry Contractor Information Booklet

The Owner Drivers and Forestry Contractors Code of Practice 

The Owner Drivers and Forestry Contractors Code of Practice sets out the legal obligations and mandatory requirements of parties involved in engaging owner drivers. It sets out how the parties should interact with each other and what constitutes best practice in the industry.

It is particularly important that Hirers of Owner Drivers and Forestry Contractors are aware of what is in the code of practice as in the last few years breaches of certain sections of the Code have become a criminal offence and carry heavy penalties.

You can read the Code in full here – The Owner Drivers and Forestry Contractors Code of Practice

The rates and costs schedules

The rates and costs schedules which set out the average rates and costs for everything associated with running a Owner Driver business. These cover the average costs of vehicle maintenance, insurance, registrations etc. and can be used by business owners to better understand the cost of running the business.

Business Victoria publish these rates and costs every year in line with changes to inflation and industry costs. You can find them here – Owner Drivers rates and costs schedules

 DID YOU KNOW?

 Some other parts of the legislation that might be useful to know are:

  • When an engagement is longer than 30 days or there is no defined duration for an ongoing engagement  it is mandatory for the hirer to have a written contract of engagement.
  • Where there is a dispute between an owner driver contractor and a hirer they may first take it to the Victorian Small Business Commission for a low cost alternative to dispute resolution. Should they fail to resolve it there it would then be referred to VCAT for resolution.
  • If you are a Freight Broker who engages owner drivers on behalf of a hirer you also have obligations under the Act and it’s regulations.

The Albanese government has forecast that they are looking to provide ways to provide protections for gig workers with possible access to the Fair Work Commission. The Owner Drivers and Forestry Contractors Industry may well be indicative of what that may look like.

If you need any assistance with anything mentioned here or with any other matter give us a call on 1300 108 488.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Why would I want to work for you?

Why would I want to work for you?

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Why would I want to work for you?

great resignation

We are hearing a lot of business owners asking the question: “Where can I find the people I need for my business?”

Attracting and retaining the people we need is one of the greatest challenges that we have in business today.

The pandemic has had dramatic effects on the labour market in a number of ways:

  • Closed borders have meant that overseas students, backpackers and other migrant workers have not been here
  • Industries such as hospitality and tourism are ones that were hard hit and workers who had been stood down went looking for more secure work, found it and aren’t going back
  • Others which were under the pump like our essential services and frontline workers were stretched to breaking point and many have left to find less stressful work
  • People have moved to regional areas or interstate to get out of lockdown areas and to improve life balance
  • With work from home orders giving people the opportunity to do that, many have found that they like that and they want to keep doing it
  • Conversely, there are some who don’t want to work from home but would prefer to return to the office and finally
  • The pandemic has caused people to rethink what is important to them in life and where work fits in their lives and that impacts on their job choices.

As a result of all of these factors, the labour market is more competitive than it has ever been.

So how do you optimally position your business to be a preferred employer in these challenging times?

What do you have to offer when that potential employee asks the question: “Why would I want to work for you?”

What difference has the pandemic made to the answers to that question?

There have been numerous studies and surveys undertaken on what people want in their workplace and their career.
Generally, we shouldn’t be surprised with what these tell us – they are pretty obvious, when you think about it – people want:

  1. The opportunity to deploy their skills and talents on work that they enjoy
  2. The contribution that they make in their work to serve a purpose – to give meaning to their lives
  3. A sense of belonging in working for an organisation that they feel part of and can feel proud of
  4. Recognition for the work that they do in both monetary and self-esteem terms
  5. Flexibility that enables them to balance work commitments with other elements of their lives
  6. A sense of fairness and respect in the inclusion and behaviour of people in the organisation (ie everyone gets a fair go) and
  7. Trust in their employer, their boss and their colleagues to support them in their role, relationships and wellbeing.

These have always been important elements of a positive workplace culture, but the impact of the pandemic has amplified them.

Additionally, when it is an employee’s labour market as is very much the case today, candidates can pick and choose based on their personal preference set.

The challenges for employers

To be successful in today’s job market, an employer must have a valid and attractive Employer Value Proposition (EVP) which clearly answers that question: “Why would I want to work for you?”

For many business owners and managers, this requires a real mind shift – to open your mind up to new ways of working and new ways of leading and managing your people.

What flexibilities can you offer people in relation to when, where and perhaps even how they work in the role that you need filled?

While you might ideally want people to return full-time to the office, have a think about why you want that. Is it because that works best for you (because it is the way it was pre-pandemic) or is it because it is best for your people and, for that matter, the business?

Perhaps a hybrid arrangement could work – some time in the office with some time working at home or at a remote hub like a coworking space near the employee’s home.

Then there is that question of what your EVP is. Do you know?

One of the more remarkable things that we have found over the years is that 80% of job ads don’t actually give you a reason to apply for them and don’t differentiate from their competition at all.

If “people are your greatest asset” as is so often said, why don’t most job ads reflect that?

Again, you need to open your mind to where you are most likely to find the skills that you are looking for and what might be important to them in a role.

For example, a number of years ago we assisted a client with recruitment of a part-time administrative person, They started thinking of the role as 3 days a week for a full day.

Then we talked about where they would be likely to find the right person and what they had to offer someone in that segment of the labour market.

The business was in a quality suburban shopping strip with a good supermarket, a chemist, a dry cleaner and the other traders that you normally find in these places. There was a tram that stopped out the front of the office and there was nearby free parking. It was ideal for a parent with school children to work during school hours and get the other daily stuff done like picking up something for dinner or getting that script filled or the dry cleaning done. That meant that the kids could be picked up and taken home without any detours.

So they decided to reconfigure the hours for the job accordingly – 9.30 to 2.30 on 5 days per week.

They pitched it that way and got what they wanted because they thought about what a candidate would be looking for in the context of their personal needs. They crafted the role to fit that.

What is your EVP?

If you look at the 7 factors above, which of those give you a strategic advantage over your labour market competitors?

Then consider ways that you can:

  • Define your value proposition (be clear about what you offer and why it is of value) taking into account the specific market that you are likely to find people in
  • Articulate your value proposition (how do you leverage that to attract and retain the people that you need) and
  • Present it engagingly and authentically, making sure that it is real – you won’t keep people long if they find that the rhetoric didn’t fit with the reality.

Your people are a great resource for this.

Part of opening your mind up is about looking at how you interact with your people and how they might contribute in different ways to support the business.

Your people will have things that they value about working for you and they will also have ideas on what isn’t working so well or things that could help to attract and retain the people you need.

So ask them what they think. Run ideas that you have past them to see what they think.

Optimise the relationships with your people by really making them feel that their opinions and work contributions are both valued.

Would any of your employees be good ambassadors for your business (eg they might be happy to be in a video telling the public why they love working in your business)?

We know how effective customer testimonials can be for sales of our products or services – why wouldn’t testimonials by your staff work as well?

If you would like some assistance in developing your EVP so that you can position your business as an Employer of Choice – for real – we can help.

 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Is an enterprise agreement the answer?

Is an enterprise agreement the answer?

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Is an enterprise agreement the answer?

Wouldn’t it be great if you could simplify compliance with modern awards and related matters?

If you could tailor content to your workplace?

If you could have everyone on the same terms of employment?

Guess what – you can do all of those things and more in an enterprise agreement.

What is an enterprise agreement?

An enterprise agreement is an agreement made between an employer and a group of employees on wages and conditions of employment for that group of employees.

They can be made with all or some employees in a particular enterprise and have to be approved by the Fair Work Commission.

They can incorporate modern awards that have application to the group of employees or they can exclude those modern awards, totally replacing them.

How are they made?

The process starts with the issue of a Notice of Representational Rights which informs the employees concerned that their employer wants to make an enterprise agreement and that they have the right to be represented in negotiation of that agreement.

Employees nominate one or more people to represent them and they can nominate themselves if they wish to.

If an employee is a member of a union, the union has default bargaining rights unless that employee nominates someone else as their bargaining representative.

The employer and employee representatives then develop a draft agreement and, when it has got to stage where there is a reasonable level of confidence that people are OK with it, a vote of employees is organised.

If a majority of the employees who vote, vote in favour of it, it is approved subject to certification by the Fair Work Commission.

What happens at the Fair Work Commission?

A copy of the signed agreement together with an Application to Approve an Enterprise Agreement (Form F16) and a Statutory Declaration (Form F17) and various other documents are filed with the Fair Work Commission.

The Commissioner who deals with it is then primarily concerned with the following questions:

  1. Whether the Agreement satisfies the Better Off Overall Test i.e. employees are better off under the Agreement than they would be under the relevant modern award(s).
  2. Whether the group of people covered by the agreement does not unfairly exclude other employees and
  3. Whether the Agreement has been fairly made i.e. the correct process has been followed, people have been properly consulted, prescribed timelines observed and people have been properly informed about the effects of making the Agreement on their wages and terms of employment before they voted on it

If the Commissioner has any concerns, an undertaking might be required or submissions might be invited for consideration.

Once the Commissioner can answer “yes” to the 3 questions noted above, the Agreement can be formally approved and legally takes effect from 7 days after the date of that approval.

Reasons for doing an enterprise agreement

There are a variety of very good reasons that might apply depending on the particular award coverage and the circumstances of the business. These include:

  1. Simplification: modern awards try to cover whole industries or particular occupations across multiple industries and we often find that much of the content in modern awards has little or any relevance to particular businesses. So we can trim it back to what is relevant.
  2. Flexibility: all modern awards have Individual Flexibility Clauses which allow some flexibility with existing employees in a limited range of matters and Facilitative Provisions which also allow some room for negotiation on some things. However, they won’t necessarily provide the sorts of flexibilities that employees might want and the employer is happy to offer and that can be addressed through an enterprise agreement.
  3. Customisation: modern awards are largely a one size fits all approach and we know that one size doesn’t fit all. For example, classification structures in modern awards are often difficult to apply to a particular business because they lack definition or they just don’t make sense. In most cases, they were developed decades ago and really don’t take account of technological and other changes to the way we work and the skills that we use today. If you pay people sufficiently above award, you can make your own structure that makes sense for your business and your people.
  4. Fairness: some modern awards have specific provisions which are just unfair for employer and employees. For example, modern awards which have Industry Specific Redundancy provisions allow an employee who resigns after at least one year’s service to receive a redundancy payment of up to 8 weeks while an employee who is retrenched after more than 5 years’ service gets less under the modern award than they would under the National Employment Standards that apply to most other employees. With an enterprise agreement, you can put everyone on the same footing with things like that.
  5. Protection: for some businesses, having an enterprise agreement of your own offers protection from coercion to enter into an enterprise agreement with a union which would force you to pay your workers at major project rates on all of the work that you do. That can make your business uncompetitive for other work. If you are in such an industry and have a non-unionised workforce who are happy to be that way, your own enterprise agreement can help you to get the right balance in paying higher rates on major project work and at lower levels on other work. Equally, a head contactor on a major project would likely want your business to have an enterprise agreement so as to avoid industrial relations disruptions to the project. All enterprise agreements are published on the Fair Work Commission’s website and you can use that to publicly demonstrate your employer value proposition to prospective employees because it is locked in by law.

Conclusions

The process for making an enterprise agreement is complicated and the Fair Work Commission’s approach to them is complex. Additionally, individual Commissioners can have their own way of dealing with them.

That means that you do need professional assistance in developing and implementing one and we can assist with that. Equally, if any of the scenarios described above fit your business situation, it can be a very worthwhile exercise that can deliver real positive change in workplace flexibility, fairness
and employee engagement.

If any of this is of interest to you, take advantage of our free first consultation to explore your options and how we can help.

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Is reference checking worthwhile?

Is reference checking worthwhile?

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Is reference checking worthwhile?

great resignation

That is a question that is often asked and, like lots of things in the people and culture space, the answer is “that depends on how you do them”.

Properly structured and executed, reference checks can be invaluable.

They provide a real opportunity to explore the candidate’s fit with your business and the role in question through the lens of others’ real life experiences with and knowledge of them.

However, too often, there is a standardised HR procedure with generic questions ostensibly designed to ensure equal opportunity in the selection process, but which delivers little real intelligence about the candidate’s fit with your business and the role in question.

Here are our rules for conducting effective reference checks.

Rule #1: Do your preparation

Understand the role that you are recruiting to, the skills and knowledge that are necessary to perform the role effectively and the character attributes that exemplify your culture.

As you should do throughout the recruitment and selection process, think about the best ways that you can ascertain whether someone has those qualities.

Consider what you have learned about this candidate in the recruitment process to date  – what, based on the evidence at your disposal, you have reasonably determined that you are satisfied with and what you still have questions about. 

One simple way to do this is to get out a set of highlighters (physically or electronically), look at the Position Description for the role and use the traffic light method to work through each function and attribute to give you a good graphic picture of where the candidate is at – green means “yes”, yellow is “maybe” and red is “no”.

Then consider why you think that and how you can best answer the questions that you need to get answers to.

Rule #2: Purposefully design the conversation 

Remember that you need to know if this person is a fit with the role in your business and your culture – not the referee’s business and culture. 

Also remember that the referee can only effectively answer your questions if you firstly engage with them in a positive way and secondly give them the information on your needs so that they can respond in the right context.

So, in planning the conversation, you need to: 

  • Verify that the person is happy to act as a referee for the candidate and that the time is OK with a clear indication of how long it is likely to take (book a time that is convenient for the referee)
  • Provide a concise explanation of the nature of your business, the desired culture and the contribution that this role is expected to make so as to give the referee an accurate context in which to respond to your questions
  • Pose a series of questions that are based on your needs asking the referee to provide you with evidence of the candidate’s fit with those qualities based on their experience but very much in the context of your business
  • Express gratitude for the referee’s participation (that is just courteous but, if you want an extra reason, giving thanks builds goodwill and enhances your reputation and that might just pay off sometime).

Rule #3: Make it a conversation 

People are often nervous about providing referee’s comments especially if there is anything that might not be complimentary. 

It is important that you put the person at ease by making the process as informal as possible – make it a conversation rather than an interrogation. 

Start by thanking them for agreeing to act as a referee and confirm the process and time commitment for them.  Give them a brief overview of your business and the role for which the candidate has applied. 

Ask a few questions about the referee’s background eg “before we start talking about Mr XYZ, tell me a bit about yourself and your background.” This helps to give you context about the referee and helps the referee to relax into the conversation. 

Then establish the connection and level of the referee’s experience with and knowledge of the candidate. Explore the nature of the role(s) that the candidate had, what their key responsibilities were and how effective they were in meeting those. 

Also explore the culture of the organisation – ask what the core values were and how well the candidate fitted with those, asking for examples of situations and ways in which they practised the values in real terms.

Now it is time to drill down into the questions that you identified in the planning process as needing answers, making sure that you contextualise the questions to your needs. For example, “here at ABC Inc, our staff work closely with people in difficult circumstances, and we need to ensure that we are continuously supporting them and their mental health. How do you think Mr XYZ would manage that for the team he would lead in this role and why, based on your experience with him, do you think that is the case?” 

When you have finished your questions, ask the referee if there is anything that they would like to add. 

Finally, close off the conversation, thanking the referee for their time and information about the candidate. 

Rule #4: Reflect and revise 

Now revisit those questions that you came up with in the planning phase and the Position Description for the role. Adjust your ratings where appropriate based on the feedback that you received from referees. 

Ready to make the call now?

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Can flexible work be for everyone?

Can flexible work be for everyone?

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Can flexible work be for everyone?

juggling flexibility

So we have the “perfect storm” of lots of factors causing constriction of the labour market in the post-lockdown environment.

There is lots of talk about working from home and hybrid working from those who had to work from home during lockdowns and would like to keep doing that for at least some of the time.

Correspondingly there is a common call to employers to be flexible in this if they are going to be competitive in that tight labour market.

But what about all of those people who can’t work from home because their job (as distinct from their boss) doesn’t allow them to.

Clearly factory workers and drivers and construction workers and those in essential services and health care and childcare and aged care and many, many more cannot do their jobs at home.

So does that mean that they cannot have some flexibility?

It shouldn’t although the options might be more limited.

Here are some to think about:

    1. Introduce RDOs to give people a day off every month
    2. Have an early finish on Friday to let people get organised for the weekend
    3. Allow people to adjust their hours to attend to personal commitments (eg an employee works an extra half hour on each of four days to get two hours off on the other day – perhaps to help with remedial reading at school or to coach a child’s sporting team)
    4. Look at job sharing arrangements where a couple of employees work part-time in the same job
    5.  Trial a 4 day week (it is working well in some places)
    6. Allow people to purchase additional annual leave for extended holidays
    7. Let people use their personal/carer’s leave more flexibly to meet important personal needs that don’t involve sick leave or caring requirements
    8. Extend the use of compassionate leave to more than just the immediate family and household (eg to attend funerals for close friends and other relatives like uncles and aunts and cousins and nephews and nieces

Then there is the law

In some cases, an employee will have a legal right to request flexible working arrangements under National Employment Standards.

The Fair Work Act provides that employees who have worked with the same employer for at least 12 months can request flexible working arrangements if they:

    • are the parent, or have responsibility for the care, of a child who is school aged or younger
    •  are a carer (under the Carer Recognition Act 2010)
    • have a disability
    • are 55 or older
    • are experiencing family or domestic violence, or
    • provide care or support to a member of their household or immediate family who requires care and support because of family or domestic violence.

This includes casual employees who have a reasonable expectation of continuing employment.\

Such requests can only be refused on reasonable business grounds and an employer has to respond in writing within 21 days saying whether they accept the request and, if not, why not.

Awards provide additional detail on how these are to be managed and employees are able to take the matter to the Fair Work Commission for review if their employer refuses their request.

Conclusion

There is a lot to think about in this space whether you are wrestling with hybrid working, wanting to enhance your value proposition as an employer or grappling with your legal obligations.

If there is anything in this that you would like some further advice on, give us a call on 0438 533 311. Take advantage of our offer of a free first consultation.

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