1. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia This is the prescribed textbook for your course. Available NOW at your campus bookstore!

2. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Employment law Chapter 21

3. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-2 Employment Public Service Act 1922 (Cwlth) protects employees from changes in government by ensuring political impatiability.

4. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-3 Employer-employee relationship Control Test - Nature - Degree of control able to be exercised by a person over the manner in which the work is to be performed by another. Delegation Test - Discretion of service provider to delegate work to another party. Business Test - Commercial factors showing whether working on own account or for someone else. Integration Test - Is work being performed on integral part of the business operation of the person engaging the services of the worker? Pragmatic Test

5. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-4 Pragmatic tests Ownership of tools Ownership of equipment or stationery Method of remuneration Payment of superannuation, insurance or workers’ compensation Deduction of PAYG income tax Use of business name or business structure The ratio of money spent to money earned after deduction of expenses Whether invoices are required to be submitted prior to payment The responsibility for losses or for rectifying errors or mistakes in the quality of work done The freedom to work for other people Whether the work is simply an identifiable job for a specified period of time

6. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-5 Options Employee Independent Contractor - Contracts for service Agent - Person who makes a contract on behalf of another with a third party. If employee (substance), statutory compliance required including: –Income tax laws –Superannuation guarantee laws –Workers’ compensation laws –Payroll tax laws –Workplace regulations taxation –Occupational health and safety laws

7. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-6 Contractors have protection against unfair protects Workplace Relations Act 1996 (Cwlth) S127A, 127B and 127C: Allows protection to contractors with respect to contracts that are unfair, harsh or unconscionable, or against the “public interest”. Trade Practices Act 1974 (Cwlth) S51AC: Unconscionable conduct in business transactions. S51AD: Industry codes to be mandatory.

8. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-7 Outsourcing/contracting out EMPLOYEE Contract of Service Labour Payment LAND HIRE COMPANY Supply Payment Labour BUSINESS

9. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-8 Formation of the Employment Contract Intention to create legal relations Offer and acceptance Consideration Capacity of parties to enter into contract Reality of consent Legality of object

10. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-9 Terms of the Employment Contract Express terms (spoken/written) Nature of work Location of work Wages Remuneration Hours of work Statement of duties/position description (employee responsibility)

11. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-10 Terms of the Employment Contract - employer’s duty Implied terms (from circumstance of offer and acceptance): To provide work To provide remuneration To not destroy or seriously damage the relationship of trust To ensure safety of employees By the Workplace Relations System: Workplace Relations Act 1996 (Cwlth) Annual Holidays Act 1994 Long Service Leave Act 1922 (Vic)

12. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-11 Terms of the Employment Contract - employee’s duty Implied terms (from circumstance of offer and acceptance): To work in a skilful and competent manner, and to exercise reasonable care. To obey an employer’s lawful and reasonable commands (a command by the employer that exposes an employee to an unreasonable risk of injury is not a lawful command). To provide faithful service (also known as the duty of fidelity). To not prejudice an employer’s interests or act in a manner hostile to the employer’s interests. To maintain confidentiality after termination of the contract (e.g. not to disclose trade secrets). To account for moneys and property received on behalf of the employer. To hand over inventions made during the course of employment. To disclose to an employer information relevant to the business of the employer. By the Workplace Relations System: Workplace Relations Act 1996 (Cwlth) Annual Holidays Act 1994 Long Service Leave Act 1922 (Vic)

13. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-12 Terms of the Employment Contract By Industrial Bodies eg. Australian Industrial Relations Commission Minimum mandatory standards: Hours of work Wage rates Classifications Rosters Overtime Penalty rates Consultation Training

14. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-13 Lawful termination of Employment Contract Termination by death Termination by the dissolution or bankruptcy of the employer Termination by sale of business by the employer Termination by frustration of contract Termination by abandonment of contract Termination by breach of contract Termination by notice Termination without notice Redundancy Suspension by employees

15. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-14 Unlawful termination of employment Dismissals prohibited by law Unfair dismissals: Unfair dismissal is assessed as being “harsh, unjust or unreasonable”. Assessment based on objective analysis of all circumstances applicable to employer and employee, using “reasonable person test”: - reason for dismissal - procedural fairness (using concept of “a fair go all round”) Constructive dismissals

16. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-15 Remedies for unfair dismissals (via legislation) Employee: re-employed in the same position re-employed in an alternative position paid an amount of compensation.

17. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-16 Remedies for breach of the Employment Contract Employer’s remedies Termination of employment Damages Injunctions and specific performance Suspension of an employee Orders by an industrial tribunal Retraining Disciplinary procedures Contract negotiation Private mediation Withdrawal of discretionary benefits Reallocation of duties or hours of work

18. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-17 Remedies for breach of the Employment Contract Employee’s remedies Resignation Damages Injunctions and specific performance Unfair dismissal proceedings Unlawful termination Claims for sums due Orders by an industrial tribunal

19. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-18 Liabilities and rights of employers and employees to third parties Vicarious Liability Employer is liable to a third party for negligent acts or omissions of an employee, carried out in the course of employment, where these acts or omissions cause loss or damage to a third party. Liability for Contracts Employer is liable for contracts entered into by an employee as agent of employer. Employee liable for contracts if act outside of authority given by employer. Liability for Criminal Acts Criminal acts of employee conducted in course of employment in strict liability cases without intention to commit the act results in vicarious liability. –Employer liable - where at direction of employer. –Employee liable - no employer direction but intention to commit the acts.

20. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-19 Statutory regulation of employment relationship Worker’s compensation Occupational Health and Safety Anti-discrimination and equal opportunity Occupational superannuation Workplace privacy

21. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-20 Worker’s compensation (Federal and State legislation) Provides wage and salary maintenance and prescribed benefits for injured workers e.g. Pensions Lump sums Medical expenses

22. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-21 Worker’s compensation Coverage: Work-related injuries “Worker” as defined in legislation Insurance obligations: Mandatory Workers’ Compensation Insurance required by employers with “Work Cover”. Employee benefits: Weekly benefits for initial period Medical and hospital benefits are covered. Economic and non-economic losses Retirement provisions Rehabilitation and return to work obligations Common Law Access: Dependant on relevant legislation. Dispute Resolution: Dependant on relevant legislation.

23. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-22 Occupational Health and Safety Employer and employee duties Risk identification and codes of practice Sanctions and enforcement

24. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-23 Duty of care

25. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-24 Anti-discrimination and equal opportunity legislation Human Rights and Equal Opportunity Commission Act 1986 Affirmative Action (Equal Employment Opportunity for Women) Act 1986 Racial Discrimination Act 1975 Sex Discrimination Act 1984 Disability Discrimination Act 1992 Workplace Relations Act 1992 Workplace Relations Act 1996

26. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-25 Anti-discrimination and equal opportunity legislation Nature of discrimination Race Sex Marital status Political belief Religious belief Disability Physical impairment Intellectual impairment Family responsibilities

27. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-26 Anti-discrimination and equal opportunity legislation Complaints and disputes Conciliation resolution at disputes Tribunal

28. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-27 Anti-discrimination and equal opportunity legislation Affirmative action Affirmative Action (Equal Employment Opportunity for Women) Act 1986 (Cwlth) For employers with 100 or more employees: To ensure appropriate action to eliminate discrimination by employers against women in relation to employment matters. Measures to promote equal opportunity for women in employment matters.

29. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-28 Anti-discrimination and equal opportunity legislation Sexual harassment Sex Discrimination Act 1984 (Cwlth) One person subjects the other to an unsolicited and unwelcome act of sexual conduct or physical intimacy in circumstances where the other person has reasonable grounds to feel offended, humiliated or embarrassed.

30. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 21-29 Anti-discrimination and equal opportunity legislation Occupational superannuation To fund and maintain living standards for an ageing population in the future. Requires employers to make superannuation contributions on behalf of their employees at a prescribed percentage of the employee’s wage or salary, as defined by the legislation, to a complying fund. Rate: 2000-01 8% 2002-03 9% Penalties for non-compliance: Non taxable deduction Superannuation Guarantee Charge.