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LEGAL AND IR
NATIONAL
Award consultation requirements When making significant changes that affect an employee’s employment, members should always consult with employees according to the clauses outlined in their applicable award or enterprise/ collective agreement. What is consultation in the workplace? Consultation is integral to any workplace and can present a legal requirement for members. Consultation effectively means asking for, and considering an employees’ views, when making decisions. It is important to engage in consultation during any major workplace change and any change that will affect employees in a significant manner. For example, a change in working hours, duties, locations or redundancies can carry consultation requirements under the applicable award or industrial instrument. Employers who consult with their employees generally tend to experience far better outcomes within their business.
The Award Awards, such as the General Retail Industry Award (the GRIA) and Timber Industry Award, contain standard consultation clauses that require employers to consult with employees and their representatives if they intend to:
• change an employee’s regular roster or ordinary hours of work, or
• make significant changes at the workplace.
Major workplace change If an employer decides to make major changes in the production, program, organisation, structure or technology
mga.asn.au | Aug 2022 | Edition 4
that is likely to have a significant effect on employees, members must:
• give notice of the changes to all
employees that may be affected
• discuss with such employees the
introduction of the changes, their likely effect on employees and measures to avoid or reduce the adverse effects of such changes.
These discussions should take place as soon as practicable after the decision has been made. When discussing changes with employees, put in writing the nature of the changes, their expected effect and any other matters likely to affect the employees.
What constitutes “significant effects” from changes • Termination of employment • Major changes in the composition,
operation, or size of the workforce or in the skills required
• Loss of or reduction in job or promotion opportunities
• Loss of or reduction in job tenure • Alteration of hours of work • Need for employees to be retrained
or transferred to other work locations
• Job restructuring.
Changes to rosters or hours of work If an employer proposes to change the regular roster hours an employee works,
consultation must occur. However, if the employee works irregular and sporadic hours then generally no consultation is necessary.
How to consult? Step 1: Provide written notice of change Proposed changes in the workplace:
• Members should consult affected
employees with information about the proposed changes, detailing the changes and when they will occur. This should be in writing, via email or letter.
• Members should invite employees’
views about the potential impact of the proposed changed for them, for example an impact on their ability to care for family members or fulfill study commitments. This should be explained in the letter and an employee should be invited to attend a consultation meeting (along with a designated support person if present) to share their opinion on the impact of the change.
It is advisable to provide reasonable notice of the consultation meeting (24 to 48 hours) and ensure the meeting is conducted during reasonable hours, such as during an existing shift. This method of consultation will demonstrate to the employee that you wish to engage in open and transparent dialogue. This will help nurture a respectful relationship with the affected employee and ensure an adequate outcome.
