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E

Employee

A person who receives a salary or wages.

Employer

A person (or group) who pays people a salary or wages

Employment Advocate

The Office of the Employment Advocate has been replaced by the Workplace Authority. See Workplace Authority.

Employer association

An association of employers, which may be a certified industrial association under the Workplace Relations Act 1996

Employment Contract

A formal or informal agreement, distinct from an AWA, CA, or award, between an employee and employer that is enforceable in the courts.

Enterprise bargaining agreement

"Enterprise bargaining" was a term recognised in a 1993 amendment to the Industrial Relations Act 1988. However, in the building and construction industry, the term "enterprise bargaining agreement" is most often used to refer to a certified agreement.

F

The Fairness Test

Workplace agreements must also pass the Fairness Test for employees earning less than $75,000 where that agreement was made or varied on or after 7 May 2007. The Fairness Test requires that these employees receive fair compensation if their agreement removes or modifies a protected award condition. Protected Award Conditions for the purposes of the Fairness Test include:

• penalty rates, including working on public holidays and weekends
• shift and overtime loadings
• monetary allowances
• annual leave loadings
• public holidays
• rest breaks
• incentive based payments and bonuses.

The Workplace Authority determines whether an agreement passes the Fairness Test. Where an employee’s agreement does not pass the Fairness Test the employer is prohibited from dismissing the employee for that reason.

Information regarding the operation of the Fairness Test can be found at www.workplaceauthority.gov.au.

Federal Safety Commissioner

The role of the Federal Safety Commissioner (FSC) is to use the influence of the Australian Government as a client and provider of capital to foster improved Occupational Health and Safety performance in the building and construction industry.

Fixed-term employees

Employees employed for a specified time often to perform project work or to replace employees absent due to long service or parental leave. These employees generally accrue entitlements such as annual and sick leave on a pro-rata basis.

Freedom of association

The principle that everyone in Australia is free to choose whether to join a union or an employer organisation.

The freedom of association provisions of the Workplace Relations Act 1996:

  • prohibit victimisation or discrimination on various grounds, including a person’s membership or non-membership of an industrial association, or the exercise of a person’s rights under industrial laws; and
  • abolish preference in employment and compulsory unionism.

In relation to the building industry, the freedom of association provisions of the Building and Construction Industry Improvement Act 2005:

  • prohibit coercion in relation to the duties, engagement, employment, or responsibilities of a building employee or contractor
  • prohibit coercion in relation to a building agreement (outside of protected action)
  • prohibit coercion in relation to superannuation contributions and funds
  • prohibit discrimination against a person in relation to their coverage by a particular industrial instrument impose penalties of up to $110,000 (body-corporates) and $22,000 (non-corporates) for contraventions of these prohibitions.

G

Goods

Any form of tangible personal property.

I

Independent Contractors Legislation

Independent contractors legislation protects the status of independent contractors by freeing them from the constraints of industrial and employment law. This allows genuine independent contractors to operate within a commercial framework, and prevents them from being captured by state laws that deem them to be employees.

The legislation offers protection from ‘sham’ arrangements, where employment relationships are misrepresented as independent contractors relationships.

The legislation also provides for a court to review services contracts and to strike them out, or re-write them, if they are found to be unfair.

The laws took effect on 1 March 2007 and apply immediately for new contracts.
While the sham and unfair contract provisions apply immediately, a three year transition period applies to the over-riding of state laws deeming a contractor to be an employee. For a person entering a services contract on or after 1 March 2007, the over-riding of state deeming laws applies immediately.

See also Subcontractors.

Indirectly funded projects

Indirectly funded projects are projects where the Australian Government funding contribution is at least $5 million and represents at least 50% of the total construction values, or where the Australian Government contribution to the project is $10 million or more.

Induction

A process that familiarises a new employee with the workplace, health and safety policy, other staff, the job, the equipment used, and the employer. It should make the employee aware of obligations, special procedures and the employer’s expectations in relation to the work and working conditions.

Industrial action

Broadly, industrial action is action taken by a party in order to support its claims in relation to conditions of employment. Industrial action by employees includes strikes, work stoppages, bans and other restrictions. Industrial action by emloyers is locking out employees. The Workplace Relations Act 1996 allows parties negotiating a certified agreement limited rights to take industrial action.

If industrial action satisfies the requirements in the Workplace Relations Act 1996, it is treated as “protected”, meaning that the party taking the action enjoys limited protection from legal liability.

For more information you may refer to our industrial action fact sheet.

The Building and Construction Industry Improvement Act 2005 prohibits unlawful industrial action. Persons or organisations engaging in such action are liable to be prosecuted. For more detailed information refer to the Unlawful Industrial Action Under the BCII Act Fact Sheet.

Documents that formerly stated the minimum wage entitlements of Victorian employees not covered by a federal award (refer to Part XV and Schedule 1A of the Workplace Relations Act 1996).

Please note that these provisions have been replaced by common rule awards effective January 1st 2005 at the earliest. For more information, contact Wagenet on 1300 363 264.

J

Job description

A written outline of a job, the tasks to be performed, the location and who the position reports to.

L

Log of claims

A list of demands sent by a union to employers demanding particular pay and conditions. It is used to trigger an industrial dispute, a bargaining period and the involvement of an industrial tribunal. The process of settling the dispute may result in the making or varying of an award.