Category: Casual Employment

  • Job Application Form Discriminatory

    Woolworths were found to have discriminated against online job applicants by requiring them to provide their gender, date of birth and proof of their right to work in Australia, as ruled by the Queensland Civil and Administrative Tribunal.

    The Tribunal said the requirement to provide the information breached the state’s Anti-Discrimination Act, and that Woolworths could not rely on a defence in section 124(3) that it was information that was “reasonably required“.

    The case last arose in December 2013 after an applicant for a console operator role at a Woolworths petrol station in Beerwah complained about having to fill in mandatory fields in the retailer’s national online recruitment system.

    Job applications could not be submitted unless the information was provided, but Woolworths has since changed the system, removing some of the fields and making others optional.

    Woolworths nevertheless argued that it was reasonable to ask for applicants’ dates of birth because some jobs could only be performed by those 18 and over, and different rates of pay might apply to those under 21.

    The information also allowed the retailer to differentiate between employees with the same name, with the company employing 190,000 workers nationwide.

    Woolworths also said it had an obligation to seek “right to work” proof to avoid breaching section 245AB of the Migration Act, which prohibits the employment of “unlawful citizens“.

    And it sought the gender information to comply with the Commonwealth’s workplace gender reporting requirements, the retailer argued.

    QCAT senior member Richard Oliver said that for those positions requiring applicants to be 18 or over, a simple question asking whether they had reached that age would suffice, together with an explanation as to why it needed the information.

    This would meet the section 124(3) defence for the information to be “reasonably required“, Mr. Oliver said.

    On the issue of differing entitlements, the senior member said dates of birth were “clearly not necessary until an applicant has been, at the very least been offered a position with Woolworths, or perhaps when discussing the position and advising an applicant of the entitlements relating to the position…It may well suit Woolworths’ administrative processes to gather the information at an early time, but it cannot be said to be reasonably necessary at the time of completing the online application,” he said.

    Gender reporting

    Rejecting Woolworths’ argument that it was required to obtain gender statistics, Mr. Oliver said the retailer could make “a reasonable estimate” from the applicants’ names. He noted, in any event, that the Commonwealth had delayed the commencement of the new gender reporting requirements until next year.

    No inconsistency with Migration, Privacy legislation

    Mr. Oliver said it was “difficult to see how it could ever be justified” for Woolworths to insist on the provision of birth certificates, passports and visas when first applicants are first seeking a position.

    Accepting there are approximately 48,000 jobs to be filled each year, with about 670,000 applicants applying for those positions, means there is a substantial amount of confidential information being imparted to Woolworths during the recruitment process,” the senior member said.

    He acknowledged that the retailer had now taken “the sensible approach” of asking applicants to nominate the basis on which they have a right to work in Australia. “Then, if an interview is undertaken, the relevant documentation can be produced for sighting by a recruitment officer… This avoids the result that thousands of documents containing confidential information remain stored in Woolworths’ database, or I suppose ‘the cloud’,” he said.

    Moreover, the Migration Act did not require an employer to seek proof, at the application stage, of an applicant’s right to work.  Mr. Oliver rejected Woolworths’ argument that there was inconsistency between the state anti-discrimination legislation and the federal Migration Act and that the latter must therefore prevail.

    Employers did not breach section 245AB by “simply considering applications“, nor by interviewing workers, the Mr. Oliver ruled. He said the section 124(3) defence in the state Act protected Woolworths from engaging in discriminatory conduct in complying with section 245AB, and a conflict did not therefore arise.

    Similarly, as the federal Privacy Act contained a similar “reasonableness” defence, there was no inconsistency between it and the state anti-discrimination laws, the senior member said.

    Compensation for embarrassment and humiliation

    The Beerwah job applicant told the tribunal he was “sickened beyond belief” at Woolworths disregard for the anti-discrimination laws.

    I infer from this statement that he was embarrassed and humiliated in being compelled to provide the offending information before his application could progress. Because of this, he did not proceed with the application and therefore was not considered for the position,” senior member Oliver said.

    He awarded the applicant $5,000, including a “notional amount” for the loss of a chance that he might have got the job if Woolworths had not engaged in the discriminatory conduct.

    Employers should be prudent

    Employers and recruiters should always question whether the information sought through their application process is strictly necessary to fill the role.

    Employers should refrain from asking any questions in their job applications that could give rise to claims the information they are seeking might be used for discriminatory purposes.

    Only include in the initial application forms the information that is strictly necessary in order to evaluate or make an assessment as to the person’s suitability for the role.  If the person moves through to the next level of consideration, which might well be offering employment, then it might well be that other information can be acquired, for administrative purposes.

    [Willmott -v– Woolworths Ltd [2014] QCAT 601 (11 November 2014)]Job Application Form

  • Changes to Penalty Rates – more than 100 hearing days

    The employer bid to change penalty rates is shaping as a massive case in the Fair Work Commission that will run until late next year, with almost 200 witnesses to be called over Changes Penalty Rates

    The Fair Work Commission’s President, Justice Iain Ross, outlined the scale of the case, and set out the timetable for hearings by a specially-constituted full bench under its four-yearly review of modern awards.

    Justice Ross said that common evidence on all awards in all industry sectors would be heard first, starting on about 20 July 2015.

    Hearings on penalty rates in 4 hospitality awards –

    • Amusement, Events and Recreation Award,
    • Hospitality Industry (General) Award,
    • Registered and Licensed Clubs Award, and
    • Restaurant Industry Award

    will start in late August.

    The tribunal will then, in late September, turn to 5 retail awards –

    • Dry Cleaning and Laundry Industry Award,
    • Fast Food Industry Award,
    • General Retail Industry Award,
    • Hair and Beauty Industry Award, and
    • Pharmacy Industry Award.

    Justice Ross said that common evidence would be relevant to claims in all awards and industry sectors, and will generally be provided by an expert and might include government reports, statistics or social commentary.

    He said award or industry-specific evidence will be presented during the hospitality and retail group stages,”Generally, no provision will be made for written evidence in reply and the parties are to rely on oral argument to test any evidence put.  However, an expert witness may be permitted to submit short written responses to any claims that subsequently challenge their evidence.”

    Employers seeking to amend the penalty rates in the hospitality and retail awards have to file joint draft variation determinations by 13 February 2015.

  • Casual Employees and the National Employment Standards

    Casual employees and the National Employment Standard (NES)

    Only certain NES entitlements apply to casual employees.  These are:

    • 2 days unpaid carer’s leave and 2 days unpaid compassionate leave per occasion;
    • maximum weekly hours;
    • community service leave (except paid jury service);
    • a day off on a public holiday, unless reasonably requested to work by the employer; and
    • provision of the Fair Work Information Statement.

    In addition, casual employees who have been employed for at least 12 months by an employer on a regular and systematic basis and with an expectation of ongoing employment are entitled to:

    • make requests for flexible working arrangements; and
    • parental leave.
  • Casual Employment

    Williams v MacMahon Mining Services Pty Ltd [2010] FCA 1321 (30 November 2010).   

    The Federal Court found in this case that a mining worker (Williams) in Western Australia who was engaged as a “casual”, was not a “genuine casual” employee, and so he was entitled to permanent employment benefits.  The Federal Court ruled that the parties to the employment contract could not define the relationship as “casual” and expect that characterisation to prevail, where a court did not regard the relationship to be truly “casual”.

    This meant the Company (MacMahon) was liable to pay the employee back pay for unpaid annual leave of just over $8,000.  Further, MacMahon’s was fined almost $15,000 for contravention of the Workplace Relations Act (now the Fair Work Act 2009).

    Facts:

    Williams was employed, as a miner, by MacMahon’s at the Argyle mining site in Western Australia.  The letter of employment provided that Williams was appointed as a “casual miner” and was required to work on a “fly-in fly-out” basis according to a roster which saw him work “two weeks on and one week off”.  Williams was paid an hourly rate of $40 which was expressed to be all inclusive of overtime, penalty rates, allowances and a casual loading (and in lieu of paid leave entitlements).  The employee was required to work 12 hour shifts on a two weeks on/one week off roster, and the letter of employment stated that the relationship could be terminated by one hour’s notice by either party.

    Williams’ employment was terminated approximately one (1) year after his appointment, and he was given one (1) hour’s notice as per the letter of employment and did not receive any payment for annual leave on termination.   William’s noted that until the termination of his employment, he constantly worked the rostered shift rotation.

    The Federal Court, in deciding that Williams’ was not a casual employee, was influenced by the following:

    • an expectation that the employee would be available, on an ongoing basis, to perform the duties required by him, in accordance with the roster;
    • stable, organised and certain roster;
    • mutual expectation of continuity of employment;
    • the nature of the work required by the employee was stipulated; and
    • travel arrangements were organised by the employer.  

    MacMahon’s relied on the termination provision to argue that the contract was expected to have a short, intermittent life.  However, after considering the contract overall, the Court decided that the real expectation of the parties was that the contract would only be terminated for cause.

    Critical Finding:

    The Court found that MacMahon’s was required to pay Williams the annual leave he would have been entitled to as a permanent employee.  The Court also prevented MacMahon’s from relying on the contract to offset the casual loading in satisfaction of annual leave entitlements.  The Court ruled that the contract term which specified that the hourly rate paid compensated Williams’ for his annual leave had no effect as a person normally cannot contract out of their entitlement to be paid out annual leave during or at the end of their employment.

    Further, Justice Barker found that MacMahon’s could not offset the percentage of the hourly rate they had been paying against the claim for annual leave, because the loading built into the hourly rate of $40 was a global percentage calculated to compensate Williams for the absence of a range of benefits, not just the absence of annual leave.  More importantly, the principal reason why the argument was rejected was because of the impact of section 173 of the Workplace Relations Act 1996, which provided as follows:

    “A term of a workplace agreement or contract has no effect to the extent to which it purports to exclude the Australian Fair Pay and Conditions Standard.”

    Justice Barker considered there was an inconsistency between the contractual term about paying a loading in lieu of giving annual leave during the employment and the statutory right to be paid for any untaken annual leave in money form on termination of the employment under the then Australian Fair Pay and Conditions Standard. He said:

    Section 173 reflects a parliamentary intention that a person cannot, by one means or the other, contract out of their entitlement to be paid out annual leave and other leave entitlements at the end of a employment period, save for the particular provisions allowing for sacrifice of annual leave.”…

    This decision was given in the context of the then prevailing provisions of the Workplace Relations Act which have now been superseded by the provisions of the “National Employment Standards” found in Part 2-2 of the Fair Work Act 2009. The equivalent provision to Section 173 of the former Workplace Relations Act in the current Fair Work Act is section 61(1) which provides:

    “This Part sets minimum standards that apply to the employment of employees which cannot be displaced, even if an enterprise agreement includes terms of the kind referred to in sub section 55 (5)”.

    While the words of section 61(1) of the Fair Work Act are different to those of section 173 of the Workplace Relations Act, it seems that the intention is the same and it is expected that the same approach as applied by Justice Barker to the meaning of section 173 in the Williams’ case will also be applied to section 61(1) of the Fair Work Act.

    Impact of Decision:

    The impact of this case is that, as an employer, there are dangers in engaging employees as casuals as a matter of course even more so with an offset provision for permanent employment entitlements.  It is important to give proper consideration to the actual role the employee will be performing to ensure he/she is engaged (and paid) on the correct basis.  Merely describing the relationship as one of casual employment in a letter of offer and/or employment contract may not be determinative of the issue.  Courts and tribunals will look behind the “name tag” to the facts of the case to decide whether an employee is really a casual or not.

    In this case, the Federal Court considered the following key features of casual employment:

    • informality, uncertainty and irregularity of work and hours of work;
    • no firm commitment as to the duration of the employee’s employment or the days (or hours) the employee will work;
    • short periods of work on an irregular basis; and
    • the employee works only on demand by the employer and can elect to work (or not work) when work is offered; and
    • The High Court decision of Doyle v Sydney Steel Co Ltd (1936) 56 C.L.R.545 that held that the concept of “casual employment”, although “ill defined” in Australia, has the essential essence of “intermittency and irregularity”.

    If your employees may be regarded as anything other than casual employees, you may be exposed to back pay claims for annual leave, and potentially claims for redundancy pay (where applicable).  Furthermore, under a number of modern awards casual employees have the right to elect to convert to part-time or full-time employment after a qualifying period, and the Company must be aware of this.