Legal— current legal framework

Employment contract

A legally binding, formal agreement between employer and employee. A well written contract ensures that the employment relationship commences in the right footing and should contain the essential terms. Written Contract are better as it gives more protection to both parties and encourages the parties to clarify the key duties and responsibilities of a job

A contract is valid and legally enforceable when:

1. The parties involved minted to create a legal relationship

2. One party offers and the other accepts

3. Both parties obtain a benefit

4. Both parties have the capacity to contract (e.g. old enough)

5. Content is not pressured— genuine

6. Offer does not contravene any public interest

2 types of contracts

1. Contracts of indefinite duration: most common type, allow for the employee to remain employed by the business until either the employee or the employer gives notice that they wish to terminate the employment.

2. Contracts of a fixed term: contracts that expressly define a date or upon completion of a specific task (e.g. 12 month contract)

Common Law

Laws made by the courts and tribunals. Under common law judges make decisions based on facts and previous similar cases/ disputes. Both employers and employees have rights and obligations to fulfil

Employer and employee obligations and rights

	Employers	Employees
Obligations (responsibilities)	Providing work Payment of income and expenses Meeting requirements of industrial relations regulations Providing equitable policies & promotions that are free of discriminations Ensuring workers are protected against unfair dismissal Duty of care— providing a safe work environment, ensuring that staff are trained	Carry out duties that are beneficial to the business Maintain confidentiality Act safely in the workplace Follow written and verbal procedures & policies Obey lawful commands that are considered reasonable even if they are not part of their primary responsibility Complete forms related to taxation  Appropriate notice of termination
Rights	Expect employees to work with care and responsibility Expect work to be carried out according to agreement Receive notice of leave and termination of contract	Payment of salary or wages Receiving minimum working conditions set out in award or enterprise agreement Receiving allowances for tools or uniforms if applicable

Awards

An award refers to the legally enforceable minimum terms and conditions that apply to a business or industry. The conditions on the modern award apply on top of the minimum conditions in the National Employment Standards (NES). Contents of modern awards: base pay rates, overtime and penalty rates, allowances, superannuation entitlement

Enterprise Agreements

Collective agreements made at a workplace level between an employer and employees about terms and conditions of employment. These agreements are above the minimum awards.

• Must pass a better of overall test (BOOT) ie, has to offer better pay and or working conditions

• Covers a group of employees

• Has a specified expiry date

• Includes a dispute settlement procedure including access to the Fair Work Commission

Individual contracts

An employer and an individual employee negotiate a contract covering pay and conditions, they are more common in the private sector, particularly in non unionised enterprises and in professional and managerial level positions. Employees on individual contracts earning over $142K follow a different dispute resolution process, ultimately resolved through the court system

Part Time Workers

are permanent staff who work less than 38 hours per week. Unlike casuals they do have access to the employment entitlements offered to full time employees but on a pro rata basis i.e sick leave, annual leave, superannuation and other applicable benefits

Independent Contractors

Undertake work for others, however they do not have the same status as an employee. Independent contractors work on a project by project basis and often have multiple clients eg a plumber. They generally submit an invoice on completion of a task or project. A contractor carries most of the risk on a job undertaken including covering their own superannuation, tax, insurances and leave

Contracts for casual work

Casual workers have contracts with employers for short term, irregular or seasonal work. Their work hours may vary, they are paid on either an hourly or daily basis and are not entitled to paid leave, including sick leave, holiday leave, carers leave etc. However they often receive 20-25 percent loading (extra pay) to compensate them for their lack of entitlements and job security.

Workers compensation

Provides a range of benefits to an employee suffering from an injury or disease related to their work. It is also provided to families of injured employees when the injury/disease was caused by, or related to, their work.

• Administered by the State Insurance Regulatory Authority (SIRA) and Insurance & Care (icare)

• Employer Duties: Must help with return-to-work plans and cannot dismiss injured workers within 6 months.

• Legal Support: Free dispute resolution through the Workers Compensation Commission.

• Penalties: False claims: $5500 fine or 12 months' jail.

Economic (cycles)

Economic cycles— Employment levels, demand for labour and employee bargaining power fluctuates according to stage of the economy (booms vs recession):

During a Boom:

• Low unemployment

• Rising inflation

• Employers raise production & high demand for labour

• Easier for employees to negotiate benefits → improved wages & working conditions

During a Recession:

• Unemployment rises & increased competition for work

• Overtime and shifts reduced

• Reduced staff to cut costs (redundancy)

• Employee bargaining power fail

Economic (structural changes)

change in the nature and pattern of production of goods and services within an economy → includes a significant growth in the level of services in an economy compared to other sectors

Economic (globalisation)

• Increased competition for AUS businesses

• More foreign ownership of businesses with many Australians now working for overseas companies

• Relocating production to reduce labour costs → increased redundancy in AUS

• Increased diversity of AUS workforce = greater access to wider range of skill + multicultural workforce

• encouraged training for different authority approaches

• Increasing role for international organisations to promote trade between countries that adhere to social justice principles (e.g. bans on child labour)