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Full Court upholds compliance with drug policy

Background   An employee engaged as a ferry master with Harbour City Ferries Pty Ltd (Harbour City) was called into work to replace another ferry master who was absent from work. On the previous day, the relieving ferry master had smoked marijuana for pain relief purposes.   The ferry master was aware of Harbour City's zero tolerance drug and alcohol policy and its application, but did not decline to work the shift. Later in the shift, the ferry master crashed into a wharf, striking a pylon.   After an investigation, Harbour City terminated the ferry master in line with its zero-tolerance policy.   Please [click here] to read our prior article providing further background details.   Prior decisions   In the first instance, the Fair Work Commission found that although there was a valid reason for termination, the dismissal was unfai...

15 April 2015

No appetite for unpaid work experience

The Court recently imposed severe penalties on an employer who exploited employees by treating them as unpaid interns or volunteers. Background The employer, Crocmedia Pty Ltd (Crocmedia) develops radio and television programs. Two  university students were initially engaged on unpaid work experience for around three weeks and thereafter continued working as interns/volunteers.  One employee undertook work on this basis for one year, the other for 6 months. During the intern/volunteer period, the employees worked as producers in various radio programs, predominately on a program entitled "All Night Appetite". The employees main shifts were midnight to 6.00am.  However, they also worked additional shifts where required. The employees agreed to undertake the work for free in an effort to gain experience and to 'get established in the industry'. Crocmedia described the employees as 'volunteers' and paid them vary...

1 April 2015

Annual leave loading - the beneficial view prevails…

The Federal Court has found that untaken benefits payable during employment such as annual leave loading are to be paid when the employment is terminated. The case before the Federal Court The main issue before the Federal Court was whether accrued but untaken annual leave when paid on termination of employment, attracted annual leave loading, or alternatively, rostered overtime, shift and weekend penalty payments, as it did when annual leave payments were made when annual leave was actually taken during employment. Background to the case Traditionally, annual leave loading has not generally been payable on termination of employment. The Fair Work Act 2009 (the Act) provides that: a.  where an employee takes a period of paid annual leave, the employee must be paid at their base rate of pay for their ordinary hours of work in the period; and b.  when the employment of an employee ends, a...

12 March 2015