Source: EMA
Yesterday’s third reading of the Employment Relations Amendment Bill gives employers long-sought clarity on defining the status of contractors in the workplace, says the Employers and Manufacturers Association (EMA).
The EMA’s Head of Advocacy, Alan McDonald, said that wish for clarity predates the recent Uber court decision and gives employers a four-gateway test that they can apply in determining the status of contractors. In addition, for those working on contracts the new legislation clarifies what they can do within their contract, including the ability to work for other clients.
“The Bill also reverses an unpopular measure imposed by the previous government requiring employers to sign up new employees to union-based collectives and to provide information to new employees about joining unions,” says McDonald.
“In a time of declining union membership, this was seen by many of our employers as a ploy to help unions shore up their memberships, especially when employees then had to choose to opt out of that union membership after 30 days.
“The change to remediation measures is another positive for employers. The idea that reinstatement should be the first priority for remediation – if a hearing in the Employment Relations Authority (ERA) finds in favour of the employee – was anathema to many employers and had been imposed on them by the previous Employment Relations Amendment Bill.
“Generally, if the case has reached the authority, the relationship between the employer and employee is irretrievably broken – and expecting that employee to be amicably re-integrated into the workforce is unrealistic. It’s telling that of all the cases that went before the ERA, only about half a dozen employees were reinstated. They are the anomalies, not the norm.
“It also seems logical that employees who contribute to their own dismissal should have that behaviour taken into account when they later raise claims against the employer. It was counterintuitive that such behaviour was sometimes disregarded by the authority when awards for unjustified dismissal were made.”
“The other major change is that employees earning more than $200,000 will no longer be able to bring an unjustified dismissal claim.
“That threshold has risen from the previous $180,000, and it’s important to remember that it applies only to unjustified dismissal claims. The grounds for any other type of claim remain unchanged.
“These changes will help rebalance some of the current inequities facing employers,” says McDonald.
In today’s competitive and challenging workplace, employers need confidence and certainty that their employment relations practices are correct and within the law.
