How to notify staff about the award changes on 1 July

Do all my employee contracts need to be reviewed and updated? Do I need to purchase new ones?

Each financial year, when there is a pay increase and change in superannuation contributions, it is a great opportunity to review staff contracts and ensure they are up-to-date with current legislation and award references. This may be as simple as updating the modern award classification (if applicable) by issuing a contract variation letter, which could also highlight changes to:

• classification
• award rate for classification
• superannuation payment
• ordinary hours
• above award rate
• position title
• reporting structure.
   

If there are numerous amendments to the employment agreement, it is recommended to issue a new contract of employment to incorporate these changes. For clarity, nothing in a new contract is intended to alter any period of service the employee has accrued for the purpose of calculating service-related entitlements. 

 
Earlier this year, the Workplace Relations Team sought legal advice on the contract templates. With the updates to employment legislation over the last two years, we wanted to ensure the contract templates provided to private practice owners are compliant and up-to-date with current legislation and award regulations.

As a result of the review, several necessary amendments have been made, meaning previous versions of the contracts are now unsupported and should be retired.

If you are holding version 2.1 employment contracts or earlier, the following table will apply in determining the level of risk the practice is likely operating under.

Recent amendments to the Fair Work Act have introduced the employee choice pathway for casual contracts and casual conversion, making conversion more accessible for casual employees while adjusting the obligations on employers. One of the most notable changes is the eligibility criteria for requesting conversion from casual to permanent employment. The employee must meet the following criteria:

1. Duration of employment
   a. for employers with 15 or more employees, the employee must have worked for at least six months
   b. for small employers (fewer than 15 employees), the employee must have worked for at least 12 months.
    
2. Change in casual status – employees must believe their work arrangements no longer fit the definition of a casual employee, specifically:
   a. they have a predictable work schedule
   b. their ongoing work arrangement is regular and systematic.
    

Employees and employers are required to engage in a structured process, ensuring fair consideration of requests to convert to permanent employment. This process includes:

• Initiating a request
  - the employee provides a written notice to their employer requesting a shift to permanent status.
• Employer’s obligation to respond
  - the employer must respond in writing within 21 days
  - they can either accept or refuse the request.
• Refusal grounds – employers can refuse the request if
  - the employee continues to meet the definition of a casual employee
  - operational reasons make the conversion impractical (e.g. uncertainty about ongoing work or financial impact on the business)
  - The change would breach laws or agreement applicable to the workplace.
• Consultation requirement
  - employers must discuss the decision with the employee before responding.

If you are a small business, until the new pathway comes into effect, you must comply with the current casual conversion processes. 
 

It would be advisable for the practice to:

• review their casual workforce and identify employees’ status by referencing the new definition which emphasises how the relationship operates in practice
• update template employment contracts for casual employees to remove the operation of references to casual conversion arrangements pre-August 2024
• consider if your existing casual conversion processes and procedures comply with the new laws and amend them where required
• diarise obligations to issue casual employment information statements (CEIS). A CEIS must be provided to new casual employees before, or as soon as possible after, they have started employment. It must also be provided to casual employees at the following times during the employment relationship
  - for small business employers – after 12 months of employment
  - for other employers – after six and 12 months of employment and then after every 12 months of employment.

The Workplace Relations Team provides reminders for upcoming changes to current and any new legislation that will impact workplaces in articles in the Workplace Relations Newsletter.

The Workplace Relations Team provide an overall service for Private Practice called Toolkit. This gives you the most up-to-date, relevant and practical support with all employment matters, specifically focusing on medical practice. 

If you have any questions regarding anything in these articles, please do not hesitate to reach out to the Workplace Relations Team on 07 3872 2264 or email us at workplacerelations@amaq.com.au.

AMA Queensland Workplace Relations Phone: 07 3872 2264  Email: workplacerelations@amaq.com.au