BlandsLaw - Blog posts from FWC
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Recent FWC Decision: Casual conversion to permanent employment

As part of their 4 yearly review of modern awards, the Fair Work Commission (FWC) has handed down a decision which allows for casual employees to request to convert to full-time or part-time employment, subject to certain criteria and restrictions. The Australian Council of Trade Unions (ACTU) sought the changes in an effort to ensure that the safety net system remains fair and relevant. Importantly, it was argued that long-term casual employment permanently denies casual employees to NES benefits such as sick leave, annual leave as well as stability of employment.

In their decision, the FWC have developed a draft model clause which is to be executed in into 85 of the 88 modern awards which do not already contain a casual conversion clause. This clause will allow casual workers to request to convert to permanent employment when:

  • They have remained engaged with their employer for 12 months and
  • They have worked a pattern of hours on an ongoing basis over the 12 month period which could continue to be
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FWC rules to cut Sunday and Public Holiday Penalty Rates

FWC rules to cut Sunday and Public Holiday Penalty Rates

In a landmark decision handed down this week, the FWC has ruled to cut Sunday and Public Holiday penalty rates, which will impact over 1 million Australian’s. The decision comes after the Hospitality and retail sectors made applications to vary penalty rate provisions as part of the Fair Work Commission's four-yearly review of awards. However, the announcement has been greeted with mixed reviews, with some business groups arguing that businesses will benefit from the changes though:

  • Increased trading hours and services offered on Sundays and Public Holidays.
  • Potential for businesses to generate more revenue.
  • Increased shifts for workers and overall hours worked.
  • Allowing businesses to hire more staff.

Nonetheless, the decision has been widely criticised by unions and affected parties, with the president of the ACTU stating that many workers will not be able to survive on the considerable pay cut. A summary of the changes are outlined below.

The FWC rejected the argument sought by businesses that Sunday rates

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A very flawed approach to the Dismissal Process

It’s a recurring issue that many employers seem to struggle with: getting the dismissal process right. It appears simple enough- if an employer has a valid reason for a dismissal and the process is handled with procedural fairness, then there should be no reason for an unfair dismissal claim. But why do so many employers get it wrong?

In a recent FWC[1] case it was held that an employee was unfairly dismissed despite his behavioural, performance and conduct issues which included the downloading and storing of pornographic material on his company phone and laptop. Unfortunately, the disciplinary process and the employee’s dismissal were riddled with errors which resulted in a termination that was found to be harsh, unjust and unreasonable.

Smarter Insurance Brokers, a small business, had mistakenly relied upon a clause in the employee’s contract that it believed meant payment in lieu of notice would relieve it of the obligation to provide a substantive reason for dismissal. Consequently the employer dismissed the employee and paid out the notice period

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Calculating Redundancy Pay: Do previous casual hours count?

A full bench of the FWC has handed down a landmark decision which has changed the previously accepted interpretation of ‘service’ under the FWA and, in effect, turned upside-down the way in which redundancy payments are usually calculated.

Following the decision in AMWU v Donau[1], a permanent employee’s initial period of regular and systematic casual employment with the same employer will now count towards their period of continuous service used to calculate redundancy pay. Whilst many employees will be rejoicing with this news, the decision holds considerable and far-reaching ramifications for employers who will have to pay the price.

The case involved Donau, a Newcastle engineering and ship-building company, who commenced a large scale redundancy process. Initially, the company did not include prior continuous service by casuals in their redundancy pay calculations. The AMWU argued that this was in breach of their enterprise agreement, which specified that redundancy pay is to be calculated according to periods of continuous employment. The dispute then turned its discussion towards the definition of

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Quitting, absent, or just angry?

A frustrated, annoyed or angered worker may walk off the job and an employer may deem that as the employee’s intention to end their employment. Or perhaps an employee continues to be absent after an authorized period of leave and then becomes completely unresponsive. Is it safe to assume that these workers have given up on their job and abandoned their employment?

Generally speaking, abandonment occurs when an employee clearly, through their actions or lack of action, indicates that they do not wish to continue at work. What is essential is a lack of communication from the employee detailing the reason for their absence.  However, abandonment is not lightly inferred and employers are reminded they must consider all objective facts and correctly follow procedure before quickly jumping to the conclusion that their employee has left their job permanently.  

In a recent case heard before the FWC[1], it was accepted that an angered employee had acted to end his employment on his own volition. During an altercation with

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The Fair Work Commission has released its 2015 Annual Minimum Wage Decision on Tuesday, 2 June 2015, awarding a 2.5% increase to Award-reliant employees.

The FWC decision increases the national minimum wage to $656.90 per week, or $17.29 per hour. This constitutes an increase of $16.00 per week or 42 cents per hour being the equivalent of a 2.5% minimum wage increase. All award rates of pay will increase by 2.5% with effect from the first pay period commencing on or after 1 July 2015. 

The FWC panel acknowledged the significant reduction in inflation and aggregate wages growth since the last minimum wage review, and stated that this was a factor in the more modest increase in the minimum wage.

Who is affected?

The 2015 Minimum Wage Decision applies to all employees covered by the national workplace relations system. 

The Minimum Wage decision will not apply to: 

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