1. Latest decisions
Here to stay: casual conversion clauses introduced in modern awards
The Fair Work Commission (FWC) has found that casual employees on modern awards should be entitled to elect to convert to full-time or part-time employment, subject to certain rules and restrictions.
Casual employees will be eligible to convert to permanent employment sufficient to a qualifying period of 12 months and demonstrating a pattern of hours that could be performed as full-time or part-time employment. An employer can refuse the conversion on reasonable grounds, including that it will require a significant adjustment to the casual’s work hours or that they anticipate that the casual position will cease to exist.
To read the FWC’s summary and full decision, click here.
Dismissal of on-hired employees
The Full Bench of the FWC has clarified the obligations of labour hire employers when dismissing an employee. In Tasmanian Ports Corporation Pty Ltd v Gee [2017] FWCFB 1714 the Full Bench found that a labour hire company could not rely on its contractual relationship with a host employer to contract out of the unfair dismissal protections in the Fair Work Act 2009 (Cth) (Fair Work Act).
Even in instances where a host employer has a right to require the removal on an on-hired employee, it does not necessarily follow that a subsequent dismissal of the employee by the labour hire employer will be fair. The Full Bench confirmed that in all instances, the fairness or otherwise of the termination will be determined on the merits of the case, and by reference to the s 387 criteria in the Fair Work Act.
To read the full decision, click here.
2. Latest news
Changes to the income and compensation caps for unfair dismissal
The income and compensation caps for unfair dismissal claims increased on 1 July to $142,000 and $71,000.
The high-income threshold for unfair dismissal applications rises from $138,900 to $142,000, while the maximum compensation increases from $69,450 to $71,000 for post 1 July dismissal claims.
The high-income threshold excludes employees not covered by an award or agreement from making an unfair dismissal claim if they earn more than the income cap.
The maximum compensation for unfair dismissal is half of the amount of the high-income threshold.
Federal Court penalties review set down for September
The Federal Court will hear the union application to quash the FWC’s decision to reduce penalty rates no earlier than 18 September. United Voice and SDA have both made applications for judicial review of the FWC’s decision to reduce Sunday and public holiday penalty rates in the hospitality, retail, fast food and pharmacy sectors. Justice Mordy Bromberg advised that due to the limited availability of judges, the case not be heard until early October.
For further detail about the changes to penalty rates, refer to our previous blog, here.
Fair Work Information statement updated
A copy of the Fair Work Information Statement must be provided to all employees, including casuals and specified term or task employees. Failure to provide a Fair Work Statement is a breach of the National Employment Standards and can result in fines.
To download a copy of the most recent version of the statement, click here.
