Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Common Law Term of Reasonable Notice Not Displaced by Statutory Minimum Notice Period

Precedential Decision by Judiciary or Regulatory Agency

Author: Naomi Seddon, Shareholder – Littler

In a recent decision, the Federal Circuit Court held that the common law term of reasonable notice, implied by law, is not displaced by the statutory minimum notice period under section 117 of the Fair Work Act 2009. The Court applied well-established considerations when determining the appropriate period of reasonable notice. This includes having regard to the specific circumstances, including the employee’s length of service, professional standing, age, qualifications and experience, degree of job mobility, expected period of time for finding alternate employment, the likely period of continued employment but for the dismissal, anything the employee gave up when commencing employment with and her prospective pension or other rights. The case serves as a reminder that employment contracts must be updated when changes are made to employment terms and conditions, including when an employee moves into a new position.

Case Clarifies When Internships Must Be Paid

Precedential Decision by Judiciary or Regulatory Agency

Author: Naomi Seddon, Shareholder – Littler

In a recent decision, the Fair Work Commission stated that an employment relationship exists only if a contract of employment has been formed, clarifying that unpaid internships for work experience do not constitute employment when: (i) the placement is mainly for the benefit of the worker rather than the business; (ii) the periods of placement are relatively short; (iii) the person is not required to or expected to do productive work; and (iv) there is no significant commercial gain or value for the business, derived out of the work performed by the person. It is good practice for companies to review their existing internship arrangements to ensure compliance.

Employer’s Mandatory Vaccination Policy Fails to Meet “Lawful and Reasonable” Test Confirming Importance of Consultation

Precedential Decision by Judiciary or Regulatory Agency

Author: Naomi Seddon, Shareholder – Littler

On December 3, 2021, the Fair Work Commission handed down its first decision on employers mandating the COVID-19 vaccination ruling against the employer in finding that the deadlines for vaccination were not lawful and reasonable. Importantly, the decision did not focus on the validity of the mandate. Rather, the Commission focused on whether the employer had complied with its consultation obligations, serving as an important reminder to employers of the importance of consultation in this process.

With this decision, the Commission confirmed that employers are entitled to mandate vaccination in the absence of a public health order or express term in their employment contract, provided that the direction is lawful and reasonable. Whether a direction is lawful and reasonable will depend on several factors, including the nature of the workplace, whether industrial instruments apply and the employer’s consultation obligations.

Fair Work Ombudsman Releases Further Guidance for Employers on COVID Vaccination Mandates

New Regulation or Official Guidance

Author: Naomi Seddon, Shareholder – Littler

The Fair Work Ombudsman has released further guidance for employers regarding the right to mandate vaccinations after the Prime Minister said that the test of "reasonableness" of such a direction to any employee extended to four tiers of employees: First tier covers employees who are at risk of acquiring the virus through direct contact (e.g., workers in quarantine facilities who are covered by public health orders, airline workers, etc.). Second tier covers those working with vulnerable population (e.g., elder care). Third tier covers essential occupations with workers who face the public in their daily work (e.g., retail, supermarkets, etc.). Fourth tier covers public servants or those who are not in often close contact with others in the course of their work.

Payroll Tax (NSW): Exemption for Maternity, Adoption and Paternity Leave Pay

New Regulation or Official Guidance

Author: Naomi Seddon, Shareholder – Littler

Revenue NSW has issued Revenue Ruling PTA 012B on the payroll tax exemptions for maternity, adoption and paternity leave pay. Certain wages paid to employees in relation to maternity or adoption leave are exempt from payroll tax under s 53 of the Payroll Tax Act 2007 (NSW). An exemption also applies to certain wages paid for paternity leave from July 1, 2010. Examples of payments made during a period of leave that are not exempt include: annual performance bonuses, payments of wages in excess of 14 weeks' pay, commissions, overtime for services performed prior to the period of leave, and advance payments for future periods of service after the period of leave.