Not-for-Profit

Not For Profit Lawyers Q & A

 
All areas of non profit law have become more complicated recently with non profit organizations required to reconcile the not for profit ideals of their constitutions with board and governance issues.
 
The best way to help avoid the confusion this can lead to is to provide you with a set of questions and answers on not for profit Organisations law that are often asked in seminars and conferences.

 

1. What is the Role of Unions in Fair Work Australia?
Unions see themselves expanding their membership base because they now have right of entry into workplaces where work is done for which the union has coverage. It is by no means sure that the new access will expand membership or otherwise.

Unions are also the default bargaining representatives for union members negotiating an enterprise agreement.



2. Is my organisation covered by the Fair Work Act?
In order to be covered by the Fair Work Act, you must show that the organisation is a corporation and it carries on a significant trading activity.



3. What do we have to do to comply with the Fair Work Act?
From the 1st July 2009, all employers covered by the Fair Work Act must ensure that they comply with the unfair dismissal laws.

In addition, employers covered by the Fair Work Act must comply with good faith bargaining. This means:

  • attending and participating in meetings;
  • disclosing relevant information;
  • responding to proposals;
  • refraining from ‘capricious or unfair’ conduct; and
  • recognising and bargaining with other bargaining representatives for the agreement.

See More about Bargaining.



4. Do I need to prepare new contracts of employment?
From 1st January 2010, the National Employment Standards will be introduced. Those standards deal with a great many matters that had previously been dealt with under the state based system. If organisations are now covered by Fair Work Australia, then contracts need to be redrafted to ensure that there is compliance with the modern awards and the national employment standards.

See also
Contract Basics
What Should Be In A Contract
Negotiation For Employees
What Employers Should Know
Information Employees Must Have



5. Do I have to change my policies and procedures or practices in respect of counselling and warning employees?
Yes.

From the 1st July 2009, employees have had a right to be given procedural fairness in respect of termination.

A minimum threshold for employees to be terminated without giving them warnings and notice are for employers who have less than 15 full time equivalent employees. Those small employers need to comply with the code of conduct for small business employers.

See also
Small Business Fair Dismissal Code
Unfair Dismissal



6. What happens when the union visits the workplace?
Unions now have a right of entry to workplaces, where the work that is done in that workplace is work that they have coverage over.

Union organisers who have a card which is an authority issued by Fair Work Australia will be able to have right of entry into the workplace, to meet with workers, giving the employer 2 days notice. Right of entry cannot be refused.



7. What happens between 1st July 2009 and 31st December 2009 if the organisation is currently paying State Award rates for employees?
The organisation continues to pay the award rates specified under a NAPSA (Notional Agreement Preserving State Awards). The NAPSA will stay in place until terminated by Fair Work Australia.

Employees in doubt about their rates of pay can make enquiries from Fair Work Australia. Anyone who does so should get confirmation from FWA that the rates quoted are correct.



8. If I am not sure about whether a modern award will apply to my workplace, how will I find out?
Fair Work Australia will be able to assist employers in respect of their obligations under Modern Awards. There will be a number of awards that will cover an organisation's workforce, particularly if they are providing childcare facilities as well as healthcare facilities for young people or aged persons. Organisations will need to be informed as to what the correct modern award rates of pay will be.

If you are ever unsure about the law regarding not for profit organisations, always speak to a employment solicitor.



9. Will be Fair Work system be simpler for not for profit employers?
There will no doubt be a shakedown period while employers are taking time to come to terms with the new system.

In the beginning, employers need to check any new IR matter they are not sure about. Employers have an obligation to ensure that they comply with the Fair Work Act. A failure to understand the Act may result in prosecutions by the Fair Work Ombudsman. And ignorance will be no excuse.



Information for Not-for-Profit Organisations >>