The Court has given a stern warning to employers and business owners not to pressure vulnerable staff into signing individual workplace agreements by fining one business owner $170,000.
Judge Peter Heerey of the Federal Court yesterday issued the Tasmanian Mornington Inn with the fine after they cut working hours of five employees who had refused to sign Australian Workplace Agreements.
This is a clear warning to employers and business owners – the Courts will not tolerate undue pressure being placed on employees into signing such agreements. Under the Howard Government’s workplace laws, companies can make signing an AWA a condition of employment for new staff, but not for existing employees.
The Court did not accept the business owners defence that coercion of employees by threatening to cut their hours was the manager’s fault. Rather, the Court found that the manager acted with the authority of the business owners, and for that reason handed the owner’s the bill for the $170,000 fine, equivalent to a years profit for the hotel. Employers and small business owners should be mindful of the Courts view on this when delegating the responsibility of negotiating employment conditions to managers and subordinates.
*Matthew Hourn is partner at Clinch Neville Long (www.clinchnevillelong.com.au) This document is not intended to be a definitive analysis of legislation or professional advice. You should take advice before any course of action is pursued.
