On 23 October 2019, the Queensland Government passed the Civil Liability and Other Legislation Amendment Act 2019 (the Act), with significant implications for child abuse claims against organisations. The reforms remove the limitation periods for survivors to commence civil action for all types of child abuse, reverse the onus of duty of care and set out the liability for unincorporated institutions and defunct institutions. The reforms are in response to the recommendations by the Royal Commission into Institutional Responses to Child Sexual Abuse (Royal Commission). We are likely to see further legislative changes as states continue to demonstrate their commitment to child safety.

Background

The Royal Commission made several recommendations regarding the civil liability of organisations. In particular, it noted that it was often difficult for individuals to commence and be successful in claims against organisations.  This was for several reasons, including that the burden was on the individual to prove that the organisation breached its duty of care, the fact that unincorporated institutions could escape liability despite having assets in a separate trust (as noted in the important case by John Ellis), and limitation periods failing to align with the average time it took for child survivors to commence claims.  

In response, several states introduced legislative reform. Victoria and New South Wales both passed legislation to reverse the burden of proof in relation to duty of care, meaning that if a person associated with an organisation abused a child, the organisation would be presumed to have breached its duty of care unless it could prove it took all reasonable steps to prevent the abuse. Both states have also removed the “Ellis defence” and required unincorporated institutions to nominate an entity capable of being sued and with assets to take its place in child abuse claims. Western Australia and the ACT have also passed similar legislation. Most states have also removed the limitation period for child sexual abuse claims. 

Changes under the Act

The Act amends several existing acts including the Civil Liability Act 2003 (Qld), Civil Proceedings Act 2011 (Qld) and Personal Injuries Proceeding Act 2002 (Qld).  The key changes under the Act include:

  1. Duty of care – the Act sets out a clear duty of care that applies to organisations to take all reasonable steps to prevent the abuse of a child by a person associated with the institution while the child is under the care, supervision, control or authority of the institution.  The burden of proof is also reversed where an institution will be taken to have breached its duty of care unless it can prove it took all reasonable steps to prevent the abuse.
  2. Unincorporated institutions – a person who experienced child abuse by a person associated with an unincorporated institution while under their care, supervision, control or authority will be able to start or continue a claim, notwithstanding that the institution is unincorporated.  The Act also states that courts can make orders to require unincorporated institutions to identify any associated trusts and make orders that the trustee of the trust is nominated as the appropriate defendant where appropriate.
  3. Defunct institutions – the Act specifically states that liability for claims against defunct institutions will be transferred to the relevant successor of the institution. Relevant factors when considering if any institution is the relevant successor include if any merger or acquisition occurred, the new institution is a part of the old institution or there is some other relevant connection.
  4. Statute of limitations – for personal injury claims, the statute of limitation was removed for personal injury claims resulting from sexual abuse when the claimant was a child. The Act now extends this to claims resulting from sexual abuse, serious physical abuse or psychological abuse of a child perpetrated in connection with sexual abuse or serious physical abuse.

Implications of the Act

The Act has significant implications for institutions based in Queensland or with operations in Queensland.  In relation to claims for historical abuse, institutions need to be aware that the Act will make it more likely that they will need to take responsibility for any liability of defunct institution that it may be associated with.  Furthermore, unincorporated institutions will no longer be able to rely on the so called ‘Ellis defence’ that they cannot be sued as they are unincorporated or do not have assets.  Trustees of trusts which hold assets for unincorporated institutions should be aware that courts can nominate them as defendants in child abuse claims.  These will also be important considerations for any institutions considering mergers or acquisitions or even taking assets from defunct institutions, noting that it may mean they also take on any liability for historical claims.

Looking forward, the duty of care set out in the Act creates an expectation that institutions must be proactive in preventing child abuse by individuals associated with the institution.  Institutions should be looking carefully at their recruitment strategies, policies and procedures and training.  

Next steps for organisations

While the Act and its changes apply to institutions in Queensland, all organisations should note that similar changes have occurred in other states or are being considered. We recommend that organisations take the following next steps to align with their legal obligations and best practice.

  1. Ensure child safe recruitment – given the legally imposed duty of care and reversed burden of proof, ensuring the right people are in your organisation is critical.  Organisations should be reviewing their recruitment practices and their monitoring of checks such as Working with Children Checks.  We have set out some tips on child safe recruitment in our HR child safety checklist.
  2. Prioritise record keeping – record keeping will be fundamentally important if institutions intend to defend themselves against claims by demonstrating that they have taken all reasonable steps to prevent the abuse. This includes keeping records of training that you run and attendees, induction processes, policies and procedures and how the organisation responds to any child safety concerns.
  3. Embed child safety into your strategy – given the implications of the new Act, organisations should be thinking about their child safety in broader strategic discussions including when considering mergers and acquisitions. Consideration should be given to any liability that the organisation may be accepting if it becomes connected with another institution or defunct institution.  Organisations may also wish to consider joining the National Redress Scheme.

For more information or assistance in aligning with your legal obligations, please do not hesitate to contact us.

A recent Fair Work Commission (Commission) decision has highlighted the importance of following a procedurally fair process when terminating an employee’s employment for misconduct, the failure of which can result in an employee’s reinstatement.

The case

In Susan Edwards v Litchfield Council [2019] FWC 6660 the Commission ordered reinstatement after an employee was dismissed from her role as gatekeeper at a waste transfer station following allegations of theft, fraud and corruption.

The employer commenced an investigation into Ms Edwards’ conduct after receiving a complaint by a co-worker that a customer’s waste was not properly deposited and was potentially unpaid for during Ms Edwards’ shift.

Rather than seeking a response from Ms Edwards to the allegations, the employer reviewed CCTV footage and prepared a report in relation to her conduct, which included that Ms Edwards’ son regularly visited her at the waste station.

The employer issued Ms Edwards with a first and final warning, which stated that any further instances of unacceptable behaviour could lead to her dismissal.

Ms Edwards was subsequently dismissed following further allegations of making illegal transactions at work, including failing to take payments from customers and recording transaction, amounting to potential theft, fraud and corruption.

Erroneous allegations and a series of procedural flaws

The Commission held that the employer’s targeted action to capture information relevant to other breaches was significant and procedurally unfair.

Notably, Ms Edwards was not offered a support person during the meeting where she was issued the first and final warning, nor was she shown the CCTV footage or provided with a log of transactions.

Before the Commission, Ms Edwards was able to provide a series of reasonable explanations in response to the allegations against her.

No valid reason for dismissal

The Commission found Ms Edwards had some discretion in her role with respect to the application of fees and charges depending on the nature of the load, and whether it involved residents or non-residents. This, coupled with a lack of documented guidelines establishing codes of conduct, led the Commission to find there was no valid reason for dismissal.

Key takeaways

Ordering reinstatement of the employee, the Commission noted that issuing a first and final warning was surprising and was not supported by the evidence.

The decision highlights that employers need to consider form and substance before moving to dismiss an employee. An employer’s decision to dismiss an employee for misconduct should be based on substantiated allegations which are supported by evidence. The process which leads to the dismissal is equally important – employees must be provided with sufficient particulars of the allegations, and provided with a reasonable opportunity to respond.

How we can help

Moores assists employers with navigating disciplinary matters and responding to misconduct, including dismissal. For assistance with workplace relations matters, please do not hesitate to contact us.

Land tax rules in Victoria are providing a disincentive to good management of property by charities. And it seems that some charities may be slugged with land tax for trying to be good stewards of their real estate.

Charities are under a legal obligation to ensure their property is applied for charitable purposes. They are also under a governance (and moral) obligation to use their assets to maximum benefit for the charity.

But Victorian law is currently proving a barrier for charities who want to take opportunities to maximise the benefit of any spare capacity or ‘downtime’ of their properties that trying to generate revenue from property from leasing, co-working and ‘external hire’ arrangements could result in a land tax assessment.

The problem in the law

The Land Tax Act 2005 (Vic) gives land tax exemptions for certain property or property uses.  For general charitable use, the Act allows property in Victoria to be exempt from land tax if it is “used by a charitable institution exclusively for charitable purposes” (our emphasis). 

Not “primarily” for charitable purposes, or “mostly” for charitable purposes – the words of the legislation recite a test of exclusivity.

The problem with this “all or nothing” approach is that it discourages use of spare capacity.  No-one is levying income tax on charities when they invest spare money into the stock market.  So why does the State of Victoria levy land tax on charities who redirect spare capacity of their properties into revenue-generating use to fund the organisation’s charitable activities?

The problem illustrated – the school theatre

Let’s say a school has a fantastic performing arts theatre. It cost a lot to build, so the business manager has the good sense to make it available for hire.

If the theatre is hired by another school for an event, there is no problem. The theatre is still being used for an educational purpose and the land tax exemption can still apply. Education is a charitable purpose.

When a local dance group wants to hold their annual concert in the theatre, it appears to be another good opportunity to earn some revenue from the facility’s spare capacity. The problem is that the local dance group is not a “charitable” activity and is not a charity itself.

The mere act of hiring out the facility for a non-charitable use has the potential of exposing the school to an assessment for land tax. A one-off hiring event might be long regretted if it were to result in a land tax assessment for a charity trying to do the right thing and put its spare capacity to good use.

A ‘commercial’ hire doesn’t even have to be one that makes money. If it is not a ‘charitable use’, then a literal reading of the current law puts the land tax exemption at risk.

The problem is everywhere

The requirement of exclusive charitable use does not embrace the reality that modern charities are creative and entrepreneurial in generating revenue. They should not be discouraged from doing so – it helps our donation dollars go further.

It is largely a nonsense to think that charities want to use their properties for “exclusive charitable use”. A literal reading of the legislation will exclude taking advantage of things like:

  • Renting out a spare office;
  • Hiring out the church hall for functions;
  • Renting car parking space to a neighbour;
  • Allowing sports coaching groups or fitness classes to hire the sports field; and
  • Private functions at campsites.

These are things that should be encouraged, not penalised.  It would be undesirable to see charities “locking up” their facilities or limiting their use for fear of getting a land tax assessment.  That just causes communities to miss out and makes charities look selfish.

Potential solutions

We don’t necessarily advocate for land tax exemption just because a property is owned by a charity (although that is the situation in NSW).  But we do believe in allowing room for charities to spread their entrepreneurial wings without being shot down by the tax man.

Here are alternatives that we think would work:

  1. Apply a “primarily or substantially” test
    If a property were used primarily or substantially for charitable purposes, the exemption would still apply.This test is applied to properties which are exempted from land tax as non-profit sporting or outdoor recreational facilities.If they are allowed to use a small amount of spare capacity for commercial hire arrangements, why can’t other charities?
     
  2. Pro-rata exemption
    Charities could have their exemption reduced (rather than removed) to the extent of the days of non-charitable use.This could be on a self-assessed basis and subject to audits for compliance.This would be an improvement on the current “all or nothing” position and would allow charities to manage the tax cost of commercial hiring.

What can you do for now?

Until our parliamentary representatives see fit to address this issue, there are some things you can do:

  • Find out whether you’re paying land tax, whether you’re exempt and why. Maybe you should be paying land tax. Maybe you shouldn’t. Maybe you should be exempt from land tax, but for a different reason.
  • Consider ways to preserve your exemption and still do commercial hire. This can come down to documenting the purpose of your hiring arrangements and creating some policies or guidelines around who you hire to and why.

And when the board asks you to look at ways to earn revenue from the spare capacity in your real estate assets and building facilities, send them a copy of this article.

How we can help

For further assistance, please do not hesitate to contact us.

A recent Supreme Court decision highlights the risk of organisations assuming that if a claim of child sexual abuse is successful, Courts will award damages in line with the amounts payable under the National Redress Scheme for Institutional Child Sexual Abuse.

In MC v Morris [2019] NSWSC 1326, the New South Wales Supreme Court found that the applicant has suffered a post-traumatic stress disorder, major depression, medication-related obesity and other related health issues following historic child sexual abuse.

The Court assessed damages of more than $3.5 million dollars at common law.

The case

In the mid 1990’s, the plaintiff performed lawn-mowing and maintenance work for his neighbours, including the defendant. At the time, the plaintiff was between 13 and 15 years old.

The defendant groomed and sexually abused the plaintiff during this period. After the plaintiff reported the abuse to the police in 2017, the defendant was charged with, and pled guilty to, criminal offences resulting in his imprisonment.

Following this, the plaintiff commenced civil proceedings against the defendant for assault and battery relating to the sexual abuse. The defendant was represented at the hearing, however did not file a defence or serve any expert evidence. The plaintiff led evidence in relation to the effect of the abuse on his life, including his expulsion from school, breakdown of his subsequent marriage and inability to maintain consistent employment.

The plaintiff tendered expert evidence of psychological injury, including post-traumatic stress disorder and major depression requiring medication, leading to extreme weight gain.

Assessment of Quantum

While damages will vary depending on the individual circumstances of the case, this decision highlights a willingness by courts to recognise the significant impact of child sexual abuse on the survivor – physically, psychologically, financially and interpersonally.

With respect to the quantum, the Court noted that it:

“Reflects the reality that the defendant’s predatory pursuit of his depraved sexual interest in a boy of early teenage years has all but destroyed what might have been a contented and useful life.”

The quantum was calculated as follows:

  • General and aggravated damages – $400,000
  • Interest on general damages – $115,000
  • Past loss of earnings – $840,000
  • Past loss of superannuation – $92,400
  • Interest on past loss of earnings – $676,363
  • Future loss of earnings – $1,079,483
  • Future loss of superannuation – $152,963
  • Future medical expenses – $20,000
  • Future care – $134,304

Key take-away points

The case serves as a reminder that organisations should not rely on the National Redress Scheme for Institutional Child Sexual Abuse Assessment Framework to assess potential quantum of damages relating to historical child sexual abuse matters, as survivors still have the ability to pursue a common law claim.

Contact us

For more information on managing child safety concerns, please do not hesitate to contact us.

Memorandums of Understanding (MOUs) seem to be the weapon of choice in the for purpose sector. Commonly used to formalise joint projects and other collaborations between organisations, MOUs are popular because they are perceived to be a quick, informal and simple way to sketch out the terms of a relationship. Organisations need to be aware, however, that these seemingly innocuous documents can lead to confusing situations that might require legal advice to untangle, or leave one party exposed to risk.

This article looks at the top four things not-for-profit organisations should consider when entering into MOUs.

1. Is non-enforceability appropriate?

Before considering the content of the agreement, organisations should first consider whether a MOU is appropriate for what they are trying to achieve. Although MOUs do not have a set definition in law, they are generally understood to be a non-enforceable written understanding between two or more organisations.

This expectation of non-enforceability is the key characteristic of a MOU. It allows organisations to record their understanding and expectations without the deliberation required for a formal contract. This means that a MOU can be simple and cost-effective to prepare.

However, the strengths of a MOU – non-enforceability and easy preparation – are also its weaknesses:

  • A MOU can be very difficult to enforce if one party does not live up to their side of the bargain. This can leave organisations exposed, particularly if a project or collaboration involves significant risk or potential liability.

    For example, MOUs are commonly used between parties collaborating to provide government funded services. The lead contractor may be unable to meet their obligations under the government funding agreement if they can’t enforce an MOU against their partner organisation.
     
  • The perceived informality of an MOU means that they are often prepared without legal assistance. This can mean that the document lacks clarity or is silent on important matters. This creates uncertainty, which increases both the likelihood of dispute between the parties and the difficulty of resolving any dispute.

The nature of a MOU means that it is better suited for informal or good-will based collaborations of low value or low risk, such as:

  • setting out a relationship in writing – for example referral pathways, information sharing or shared resources;
  • working on a project or delivering services together;
  • an agreement to agree – a loose understanding before formal negotiations on merging, contracting or working together; or
  • confirming an advocacy position.

A more formal, enforceable agreement is more appropriate for:

  • delivery of significant services;
  • sub-contracting significant government or philanthropic funded projects;
  • projects involving use of valuable intellectual property;
  • risky agreements or projects that could result in significant liability; and
  • relationships that require strict confidentiality, or where breaches of confidentiality will be harmful to beneficiaries.

The key questions for organisations considering entering into a MOU is – how severe could the consequences be for our organisation if the other party does not meet their obligations and we cannot enforce this agreement? If you need to be able to enforce an agreement, it is best to use a properly drafted contract.

2. Should at least part of the MOU be enforceable?

Even in the most informal relationships, it may be appropriate to have some terms that will be enforceable and can even survive the termination of the relationship. These need to be clearly distinguished from the rest of the MOU and may deal with matters such as confidentiality and non-disparagement.

3. A contract by any other name….would still be enforceable

Some organisations prefer a MOU precisely because it is non-enforceable – they don’t want the agreement to be able to “come back to bite them”. Organisations should be aware that simply describing a document as a “Memorandum of Understanding” or “Heads of Agreement” does not automatically make it legally unenforceable. It is not uncommon to see “MOUs” that are actually legally binding contracts.

The question is whether the parties intended to create a legally binding relationship. This will depend partly on the circumstances surrounding the MOU, and partly on the wording of the document itself. A clause stating “nothing in this MOU is intended to create legally binding obligations” is a great start. On the other hand, a MOU that is silent on intention but includes a large amount of detail (like specifics of the services one party will deliver, how they will be remunerated and consequences if the parties don’t meet their obligations) could in fact be a contract.

A key risk with a MOU that is a “contract in disguise” is that it will often not have been prepared with the care and deliberation that should go into an enforceable contract. It may also not have been through any requisite Board approval process.

4. Does the MOU cover off on the essentials?

There are essential matters MOUs should address. These help to ensure that the document is practical, comprehensive and captures matters that otherwise may be merely recorded in meeting notes and through chains of emails. A well drafted MOU will give clarity to all parties and help them to confirm that they are on the same page before they get started.

At a minimum, MOUs should address the following:

  • details of the organisations, including a contact person (or people) for each party;
  • the purpose or objective of the MOU;
  • the agreed role and actions from each party;
  • information about payment stages, triggers and amounts;
  • a start and finish date;
  • protection for privacy and confidentiality;
  • a dispute resolution process; and
  • a statement confirming that it is not intended to be legally binding – and excluding any provisions that should be binding and/or survive termination.

Depending on the scope of the MOU, it may also be useful to cover details like definitions, interpretation, relationship to other agreements and use of intellectual property.

Next steps

Organisations should give careful consideration to whether an MOU is the appropriate way to set out the terms of a collaboration or joint project. Any MOU must be carefully prepared to ensure that it does not leave your organisation exposed. 

Our For Purpose team regularly helps clients to appropriately document the terms of their relationships with project partners. If you have a query, please do not hesitate to contact us.

Recent cases and the latest statistics from the regulator demonstrate that human error continues to be a key issue in data breaches, including where these human errors open up opportunity for hacking and other types of cyber-breaches.

Those in Not-for-Profits often suffer some financial impact, but also the issue of damaged reputations.

Victorian hospitals, Commonwealth Superannuation Corporation, online gaming company Zynga, online ticket company Get, PayID and food delivery company DoorDash – there has been no shortage of recent data breaches which have recently affected a wide range of organisations.  

These high profile data breaches demonstrate the variety of different types of data breaches, from malicious activity to human error.  They also demonstrate that data breaches can be operationally, reputationally and financially damaging.

The recent data breaches provide a key lesson for all organisations that data breaches are a very real risk for which many organisations still remain under-prepared.

Recent data breaches

Hospital data breach

In late September 2019, several hospitals in western Victoria suffered a data breach.  This included Gippsland Hospital, Barwon Hospital, Geelong’s University Hospital and hospitals in Warrnambool, Colac, Warragul, Sale and Bairnsdale. 

The attack was a malicious criminal attack that forced several hospitals to quarantine and disconnect a number of their systems including the internet, patient records and booking and management systems. 

This meant some medical procedures had to be delayed and Premier Daniel Andrews stated that it would take weeks to secure the affected networks and clear out the virus.  Currently, there is no evidence to suggest any personal information was released.

The attack comes after a warning from Victoria’s Auditor-General who stated in May that Victoria’s health databases had serious weaknesses which put patient data at risk.  This aligns with the Office of the Australian Information Commissioner (OAIC), which consistently reports health service providers as the sector that suffers the most notifiable data breaches.

So, whilst the breaches were caused by malicious activity, the suggestion is the human-created environment enabled the attacks.

PayID

PayID allows account holders across all major financial institutions to make instantaneous payments using mobile phone numbers or emails.  It was launched in 2018 by the New Payments Platform, an alliance of 13 banks and has been used to process 90 million transactions totalling more than $75 billion.  However, since its release, PayID has been plagued with privacy concerns and data breaches.  In particular, it was criticised that when a phone number is typed in, the name associated with the phone number automatically pops up (to confirm the identity).  Therefore, anyone typing in a string of numbers will automatically know the name of the person holding that phone number.

In June 2019, 98,000 PayID details were obtained by hackers who were able to access the personal information of 600,000 PayID users.  In August 2019, a further 92,000 PayIDs were exposed, leading to the reveal of users’ full name and mobile phone numbers.  This was then used to send phishing messages to clients claiming to be from banks.

In this case, some of the user-friendly functions wanted for human interaction inadvertently led to technical vulnerabilities.

Commonwealth Superannuation Corporation

On 24 September 2019, an ABC staff member was sent a document containing the full names and addresses of customers and the amounts they had transferred into their superfunds.  The ABC staff member was sent her own information as well as the additional documents with the personal information of other customers.

CSC has admitted that 18 customers were affected and they are investigating urgently.  It is expected that the incident was due to human error. 

We again see here the factor of human error laying the groundwork for a data breach which later occurs electronically.

Impact of data breaches on organisations

The significant media coverage regarding recent data breaches demonstrates the broad impact data breaches can have on organisations. 

For not-for-profits, this can also impact their reputation as a trusted organisation.  In 2017, the accidental release of personal information from 550,000 blood donors impacted Australian Red Cross Blood Service’s reputation as a trusted organisation.  In the two weeks that followed, they received 3,700 calls and emails regarding the breach.  Luckily, Red Cross’ rapid response and honesty helped preserve their reputation.  They were however required to enter enforceable undertakings with the OAIC.

Data breaches for organisations can also cause significant financial loss.  In 2018, Save the Children lost $1 million when a cyber-attack gained access to an employee’s email account and then used that to create fake invoices.  Furthermore, we are seeing increased amounts of law suits against organisations that fail to protect the privacy of individuals.  For example, Yahoo recently settled a data breach class action for $117 million.

Not-for-profits that are bound by the Privacy Act 1988 (Cth) should also be aware of the penalties under the Act, especially in light of announcements in March 2019 that the Government intends to increase penalties to $10 million, three times the value of the benefit obtained through the misuse of information or 10% of an organisation’s annual domestic turnover.

Key lessons and next steps for your organisation

It is important that organisations are doing what they can to both prevent data breaches and also ensure that they are equipped to respond efficiently to any breaches that do occur.

We recommend that organisations prioritise the following:

  1. Put in place / review your data breach response plan – then educate your staff and follow it: if your organisation does not currently have a data breach response plan (DBRP) in place, it should ensure it does so urgently.  This should help step you through how to respond to breaches in accordance with your legal obligations.  If you already have one, consider if it needs to be reviewed in light of recent developments in law and best practice.  As stated by the OAIC in its report regarding the Red Cross data breach, “data breaches can still happen in the best organisations” and it is how an organisation responds that can be defining.
  2. Review your third party contracts – outsource the job, not the privacy compliance: the Red Cross breach demonstrates the importance of ensuring organisations that store data with third parties must make sure that privacy compliance is embedded in these agreements.  The OAIC has consistently stated that organisations cannot outsource compliance with their legal obligations and ultimately will be responsible for the data that they collect and use.  
  3. Train your staff: it is a consistent theme in many data breaches that they are either a result of or caused by human error, such as in the Commonwealth Superannuation Corporation example.  While some mistakes are inevitable, often human error occurs due to a lack of understanding regarding suspicious emails, proper protocols and safeguards.  Furthermore, your staff should be trained on how to respond to data breaches quickly to mitigate any harm or further disclosure such as recalling emails and assessing the impact of breaches.  
  4. Understand your vulnerabilities and prepare accordingly: the recent data breaches demonstrate that different sectors and different types of data will have different vulnerabilities and risks.  It is important that organisations understand these so that they can prioritise preventive action and resources.  For example, the PayID data breach might have seemed like a breach where no harm would eventuate but the use of the clients’ contact details to send phishing emails allegedly from a bank could have led to significant financial loss.  Similarly, health organisations should be considering their vulnerabilities.  An organisation’s policies and procedures should be tailored accordingly to ensure that they are as effective as they can be to both prevent data breaches and rapidly respond.

Privacy Training Sessions

Moores is currently taking bookings for privacy training sessions. Contact us below if you’d like to hear more about out engaging and entertaining privacy training sessions for staff, and our in depth sessions for boards.

About Moores’ Privacy Practice

Our privacy team has worked with a large number of corporates and Not-For-Profits regarding their privacy compliance including:

  • Policy and compliance;
  • Assisting with responding to privacy breaches or suspected breaches;
  • Privacy audits and compliance reports;
  • Developing data breach response plans;
  • Privacy framework design; and
  • Training boards and staff

If you need any assistance with Privacy practices for your organization, please do not hesitate to contact us.

The Fair Work Commission (the Commission) has once again cautioned employers against dismissing employees by text message, deeming it rarely appropriate or considerate. Despite text messaging being a now common form of communication, the Commission, in two recent decisions, has described dismissal by text message as repugnant.

The cases

In Kurt Wallace v AFS Security 24/7 Pty Ltd [2019] FWC 4292, a casual employee was awarded $12,465 in compensation after being told by text message that his services as a causal patrol guard with AFS Security were no longer required.

The employee had been employed by AFS for two years and had previously been verbally counselled regarding his work performance. Shortly after the employee raised a concern about not receiving payment for a shift he had worked, the employee was dismissed from his employment by text message.

The Commission determined the employee was a regular and systematic casual employee and therefore able to make unfair dismissal application. In response to the application, AFS argued that text messaging was the normal method of communication within the company.

Finding the employee had been unfairly dismissed, the Commission noted that:

“Notification of dismissal should not be made by text message or other electronic communication. Unless there is some genuine apprehension of physical violence or geographical impediment, the message of dismissal should be conveyed face to face. To do otherwise is unnecessarily callous”.

In forming its decision, the Commission considered that:

  • the employee was not provided with a reason for the dismissal;
  • the employee was not provided with an opportunity to respond to any issues before being dismissed; and
  • the employee was notified by text message of the dismissal and did not receive any documentation relating to the dismissal.

A similar warning was issued by the Commission in Van-Son Thai v Email Ventilation Pty Ltd [2019] FWC 4116, after an employee of 12 years was terminated by text message. Here the Commission stated:

“It is not the first time I have had cause to point out that informing an employee of their dismissal by phone, text or email is an inappropriate means of conveying a decision, which has such serious ramifications for an employee. I consider it would only be in rare circumstances that a decision to dismiss an employee should not be conveyed in person”.

What should employers do?

The Commission has made clear that it will rarely, if ever, be reasonable to terminate an employee by text message. This is the case even in small businesses or where text messaging is the common method of communication.

Even where there is a valid reason for dismissal, if an employee is dismissed other than in person, the employer is likely to be at significant risk of an employee succeeding in an unfair dismissal claim. The Commission has wide ranging powers in unfair dismissal claims including ordering reinstatement or awarding significant compensation.

How can Moores help?

If you need assistance to navigate the complex path associated with managing or dismissing an employee, please do not hesitate to contact us.


https://www.fwc.gov.au/documents/decisionssigned/html/2019fwc4292.htm

https://www.fwc.gov.au/documents/decisionssigned/html/pdf/2019fwc4116.pdf

From 1 October 2019, employers will have greater certainty on when they can reject job applications from people with criminal records.  The introduction of the Australian Human Rights Commission Regulations 2019 (Regulations) clarifies that it is lawful for employers to discriminate on the basis of a ‘relevant criminal record’. The Regulations also introduce a more contemporary definition of disability.

Overview of the Commission’s powers

The Australian Human Rights Commission Act 1986 (AHRC Act) enables the Commission to inquire into, and attempt to settle by conciliation, complaints of discrimination in employment on specified grounds. Subsection 3(1)(b) of the AHRC Act provides that the Attorney-General may declare, by regulation, additional grounds which constitute discrimination for the purposes of the Commission’s equal employment opportunity powers.  There are ten additional grounds declared in the Regulations.

The Commission’s powers with respect to equal opportunity in employment differ to existing mechanisms to resolve workplace discrimination, such as complaints to the Commission under federal anti‑discrimination legislation.  The powers have been described by some as a “toothless tiger” because the complainant has no right pursue their claim in the Federal Court or Federal Circuit Court, and there are no enforceable remedies for these complaints. If conciliation is unsuccessful and the Commission finds unlawful discrimination, the Commission can simply report the matter to the Attorney-General and make non-enforceable recommendations.

Further, the Commission’s equal opportunity in employment function provides broader coverage of protections for workplace discrimination than that under Commonwealth discrimination laws. For example, volunteers are not explicitly covered in the Disability Discrimination Act 1992, the Sex Discrimination Act 1984 or the Age Discrimination Act 2004 but are covered under the Commission’s equal opportunity in employment functions.

What do the new Regulations cover?

Irrelevant Criminal Record

The Regulations amend the ground of ‘criminal record’ to irrelevant criminal record. This amendment was introduced in response to concerns raised by the Commission’s report in BE v Suncorp Group Ltd [2018] AusHRC121, which involved a case where an employer discriminated by withdrawing a job offer to a man who had failed to disclose child pornography convictions, arguing that the criminal record demonstrated he was not of sufficient character and integrity to be trusted at work.

The effect of the amended ground is to clarify that, while employers can discriminate on the basis of a ‘relevant criminal record’, they will not be able to discriminate if the conviction is ‘irrelevant’ to the role for which the person is applying.  By ensuring that employers don’t discriminate on the basis of an irrelevant criminal record, the Regulations strike a better balance between enabling people with criminal records to find employment, whilst protecting an employer’s right to refuse employment when a person’s criminal record makes them unsuitable for the position they’ve applied for.

Disability

The Regulations also introduce a single ground of disability, which includes all disabilities and does not distinguish between different disabilities, like the old Regulations did. As well as aligning the definition with the Disability Discrimination Act 1992, it provides welcome clarity to employers and employees and limits the risk of uncertainty around whether a person’s disability fits within the protected ground.

Whilst the Regulations provide welcome clarity for employers and employees about the scope of the Commission’s powers to help resolve workplace discrimination complaints on the grounds of disability and irrelevant criminal records, it can also be a sensitive terrain that employers have to navigate.

How Moores can help

If you are facing any challenges around potential workplace decisions involving people with disability or a person with a criminal record, we can help you to navigate this challenging landscape. Please do not hesitate to contact us.

Moores recently hosted a seminar alongside staff of the Fair Work Commission (Commission) to discuss the Enterprise Bargaining Agreement (EBA) approvals process and debunk some of mystery around how the Commission assesses applications.

An EBA is a registered agreement which sets out the terms and conditions of employment between a group of employees and one or more employers. Once approved by the Commission, EBAs have the effect of prevailing over Modern Awards that may otherwise cover employees unless the Modern Award is incorporated into the EBA.

Under the Fair Work Act 2009 (Cth) (Act), the Commission can only approve an EBA if it is satisfied that the Agreement:

  1. has been genuinely agreed to
  2. covers a group of employees who were fairly chosen
  3. passes the better off overall test
  4. only includes permitted matters
  5. includes all mandatory terms, and
  6. includes no unlawful terms.

The Act sets out specific time frames which organisations must comply with when negotiating and drafting an EBA. The consequences of non-compliance with the Act can result in significant delays in the process and even the EBA being rejected by the Commission.

Our top tips for ensuring you have the best prospects of having your EBA approved by the Commission, are:

  1. understand and comply with the timeframes set out in the Act – we recommend organisations have a bargaining plan which sets out key milestones throughout the process;
  2. provide employees with the correct Notice of Employee Representational Rights in the form as prescribed by the Fair Work Regulations 2009 (Cth);
  3. include enough information in your application so the Commission understands how your business operates and what steps were taken during the EBA process; and
  4. be sure to submit all the required forms to the Commission with supporting documents.

How Moores can help:

If you want to implement an EBA within your organisation and don’t know where to start, Moores can guide you through the process. For more information on enterprise bargaining, please do not hesitate to contact us.


Alert:

Currently the Fair Work Commission is trialling a new system which will enable organisations lodging an EBA to complete and submit all necessary documents on-line by using a smart form system. The system will assist parties to lodge compliant applications by:

  • prompting users for mandatory information
  • alerting users when dates entered may not meet statutory timeframes or when questions have not been answered, and
  • allowing frequent users to create template versions of the forms with common information saved for re-use.

Organisations can take part in the trial during October and November ahead of an expected roll out of the system in late 2019. Further information can be obtained by contacting the Fair Work Commission.

A recent Supreme Court Decision highlights the risk to schools of using enrolment documents which don’t provide sufficient protection, after finding a school was unable to recover unpaid tuition fees from parents.

It’s an issue we see frequently: simply rolling out new terms and conditions does not mean all parents are bound.  Many schools are – or have just advised of – fee increases. Do these notifications actually form part of the binding enrolment agreement?

The case: Whitworth v Christian Brothers College Adelaide

In the case of Whitworth v Christian Brothers College Adelaide,[1] the Supreme Court found that the College was unable to recover unpaid fees of close to $15,000. The student’s mother had entered into an enrolment contract with the College in 2009. In 2017 and 2018 updated School Fee Agreement Forms were sent to the mother along with a request to pay the applicable fees. The mother did not sign the forms or pay the applicable fees.

In finding that the College was unable to recover the unpaid fees, the Court found that the enrolment documents were deficient for the following reasons:

  • the contract did not expressly state that the terms and conditions contained therein would continue beyond the first year of enrolment;
  • in the absence of express terms, the contract was not clear that the relationship between the College and the mother was ongoing; and
  • the contract specifically stated that fees would be reviewed each year, which the Court held, could be taken to mean contracts would be renewed each year.

Having regard to the specific facts of the case, the Court held that:

  1. the enrolment documents were not entirely clear;
  2. it was at least arguable that on proper construction of the contract, the relationship between the College and the mother was one of a series of enrolment contracts rather than a continuation of the original contract; and
  3. the original enrolment contract had been superseded.

Key takeaways for School’s Enrolment Documents

Following this Decision, we recommend that schools review their enrolment documents to ensure they are up to date and offer adequate protection.

A few key points:

  • it’s extremely problematic to have parents sign any form of terms and conditions upon enrolment application, then seek to bind parents to those terms many years later upon actual enrolment; and
  • rolling out new terms and conditions needs to be done properly, to ensure parents are bound, noting that many schools find this out the hard way when seeking to enforce a version of terms and conditions the parents have never seen.

Consider:

  • what terms need to be contained within the contract and what terms should sit within a policy external to the contract – then, how are these brought into the contract;
  • what terms are implied or incorporated into the contract by reference or by statements made within communications to parents/guardians, potentially over many years;
  • whether the contract deals with the requirement to pay fees, whether fees are refundable or non-refundable, and whether the contract enables the school to increase fees, noting that non-refundable fees must actually be a reasonable pre-estimate of the school’s cost arising from parent breach (e.g. one term’s forfeiture for late withdrawal);
  • whether the contract actually provides for consequence of breaching the agreement;
  • whether the contract deals with the collection, storage and use of information;
  • whether there is an ability to vary the terms of the contract embedded into it; and
  • what the relationship is between fee update notices and the enrolment contract.

How we can help

If you would like to discuss any of the above, please do not hesitate to contact us.


[1] [2019] it’s SASC 154