June 2010: In this edition
• Termination of Employment… so you’re the employer, and you’re about to terminate one of your employees, are you aware of the correct procedures to follow, and are you aware of the potential ramifications of these actions?
• Changes to Workplace Health & Safety Legislation… soon the Government will implement changes to Workplace Safety Legislation which will have particular impact on business. It is imperative organisations are aware and prepared for this!!!
• Just a Thought… what characteristics do effective leaders need to help them perform and help the organisation grow?
Before we get started, the following is an update of news from the last couple of weeks…
• Skills shortage remains as Australia appears to be in the grips of a talent shortage with 45% of employers having difficulty in filling key positions, including Skilled Trades; Sales Representatives and Engineers;
• The Federal Government is about to collect a $10 billion windfall in regards to unclaimed Superannuation… it appears that so many individuals have not accessed these unclaimed funds and apparently the [superannuation] industry executives believe it's impossible to find the owners of the [individual] funds;
• On 3 June 2010 the Minimum Wage Panel of Fair Work Australia awarded a $26 per week increase to all adult minimum wage classifications in modern awards and the national minimum wage. This lifts the minimum wage to $569.90 a week, or $15 per hour. There will also be proportionate increases that apply to junior employees and those employees who have training arrangements, such as apprentices and trainees. These minimum wage increases will be effective from 1 July 2010;
Termination of Employment...
Under the new National Workplace [relations] system, new ‘Unfair Dismissal’ laws have been introduced which will impact upon Small Business.
For the purposes of definition… Unfair Dismissal occurs when an employee has been terminated and it is found that the dismissal was harsh, unjust or unreasonable and the dismissal was not a case of genuine redundancy.
Note… Unfair Dismissal does not occur for Small Business who employs fewer than 15 employees and certain processes/guidelines were followed to ensure the actions/outcomes were appropriate.
So, when is a dismissal considered harsh, unjust or unreasonable? When it is found that:-
- There was no valid reason given for the dismissal with regards to the employees conduct or capacity;
- The employee was not notified of the reason nor allowed the opportunity to respond; and
- [if] the dismissal relates to unsatisfactory performance, was the employee warned about such performance issues prior the termination;
Notwithstanding an employer has the right to summarily dismiss an employee for reasons such as; Serious Misconduct, which includes…theft; fraud; violence and [serious] breaches of Occupational Health and Safety procedures.
Further Workplace Legislation prohibits an employee being terminated where the reasons are deemed ‘Unlawful’ (i.e. reasons that are deemed discriminatory). Generally the employee will have protection against ‘Unlawful’ termination under the General Protection provision of the Fair Work Act 2009.
When the employment relationship ends, employees should receive the following entitlements [in their final pay]:-
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Any outstanding wages (or other remuneration) still owing;
- Any payments being made in Lieu of Notice;
- Any outstanding entitlements to Annual or Long Service Leave; and
- Any severance payments (with regards to Redundancy) as per the [relevant] Federal Workplace Laws, or the respective Industrial Agreement (i.e. Awards, Agreements);
When an employee has been terminated and he/she feels the termination was unfair, they have the opportunity to seek the assistance of Fair Work Australia (FWA).
Applications regarding Unfair Dismissal must be lodged within 14 days of the termination date. Once FWA is involved certain actions are initiated including the verification of the claim and the instigation of the conciliation process.
If FWA finds the dismissal was in fact ‘Unfair’ it may order the reinstatement of the employee or financial compensation (of up to 26 weeks pay).
Of course the employer can object to such an application [of Unfair Dismissal] especially if:-
- The application was lodged outside the prescribed time limits;
- The applicant (i.e. employee) is not covered by Unfair Dismissal laws (or is not eligible to make an application); or
- The complaint is frivolous, vexatious or has no reasonable prospects of success.
Whilst the termination of employment, for any reason, is never a pleasant experience, it is sometimes necessary (given the prevailing circumstances). Therefore it is imperative that organizations ensure this process is conducted professionally, appropriately and according to legislation.
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Health & Safety Legislation changes...
The Government is introducing changes to Workplace Health & Safety legislation which will have an affect on all businesses… It is expected that all laws will commence on 1 January 2012.
Specifically, the Australian Government has identified work health and safety as a priority area for reform.
One of the key elements of the reform agenda is harmonisation – moving towards one set of work health and safety laws.
The harmonisation of work health and safety laws aims to reduce the incidence of death, injury and disease across Australia.
Safe Work Australia is responsible for developing model work health and safety laws. The model Work Health and Safety laws will consist of the model Work Health & Safety Act, supported by model Work Health & Safety Regulations and model Codes of Practice that can be readily adopted around Australia.
This requires each state and territory to pass their own laws that mirror the model work health and safety laws and adopt them by December 2011.
Further there is an increased focus on combating Bullying and Harassment in the workplace…
Did you know?
- Bullying is unreasonable behaviour that creates a risk of physical or psychological harm that usually is repeated over time however can result from a single incident.
- There have been 2,400 workers compensation claims made for workplace bullying costing more than $60 million during the past two years.
WorkCover is stepping up the fight against workplace bullying with a new awareness campaign launched recently.
WorkCover inspectors and advisory officers will assess the systems employer’s have in place to address bullying and provide educational resources to help businesses understand their work health and safety obligations.
Organisations will need to develop and implement systems that will ensure their compliance with these and existing [workplace] safety legislation.
Such a system would be a Business Safety Program, which has been designed to assist Small and Medium Enterprises (SME’s) to manage health and safety obligations consistent with their size, industry risks and available resources.
The benefits of such a program allow organisations the opportunity to reduce the impact and worry of implementing strategies for controlling safety with immediate effect.
The Business Safety Program can be designed specifically for you and the organisation.
This month is your chance to start the new financial year with a clear understanding of how you comply with the current OHS legislation and “YES” implementing such changes will not only ensure compliance to legislation, but may also be financially beneficial to the business.
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Just a Thought...
When we consult text, effective leadership is defined as people who possess desirable traits or qualities, for example – charisma, foresight, persuasiveness and intensity.
It is a given that Organisations are successful largely as a result of the personal (and flexible) leadership qualities of its people, especially as the business world is in a state of flux…so organisations are finding that the leadership required goes beyond the traditional model.
This is a result of changing organisational structures; a new and diverse workforce (that have increased expectations); reduced ‘company’ loyalties; and individuals whose respect for authority has diminished.
Research conducted into this topic questioned what actually characterises effective leadership…and found that:-
- without leadership organisations struggle in times of change;
- leadership is imperative from Senior Executives throughout all levels of the business;
- leadership abilities do not automatically come with the position/title;
- effective leaders inspire other to take on leadership tasks; and
- effective leadership skills can be learned.
It is also important to recognise that the leader’s personality, past experiences and expectations will influence their [individual] choices and/or style. Suffice to say, leaders develop the style with which they are most comfortable. Notwithstanding, this does not mean that their style cannot be changed, and as such [effective] leaders understand that some styles work better for them than others. And so if one style proves inappropriate, this can be changed!
Considering the above, it is clear that [effective] leadership is an imperative for organisations especially because of the critical role it plays in the organisations success. However as has been seen/witnessed in organisations, their leaders appear not to have the skills nor the capacity to effectively lead the business successfully! These leaders are appointed because they are technically competent (with regards to the operation), yet are not developed as people managers.
As has been stated, effective leaders can be influence the direction and therefore the success of the business, so appropriate ‘Management Development’ programs are required to ensure the people entrusted with the growth of the business, are too given the chance to grow.
If you would like any further information regarding the information contained within this Newsletter and/or any other HR Matter, please don’t hesitate in contacting us at contact@hrmconsulting.com.au or you can call John Cachia direct on 0419 738 735.
Remember at HRM Consulting, we help grow your business through smart solutions for your most valuable resource: your people!
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