Warning to employers about abusing new IR rules

31/10/93

Western Australian employers who attempt to abuse the State Government's new industrial relations legislation will be in serious legal trouble.

Labour Relations Minister Graham Kierath issued this warning after hearing about the case of a hairdressing salon proprietor who had attempted to pay employees on a commission based on a proportion of the fees they generated, rather than a wage.

The Minister said the agreement, which the employer had presented to an employee, also failed to prescribe the number of hours which would be worked by employees.

"In both instances, the action is illegal under existing legislation and will also be illegal under the Government's new legislation if it does not meet the minimum conditions of employment," Mr Kierath said.

"If employees are paid solely on a commission basis as was proposed, then there is the distinct possibility that their earnings will fall below the minimum rate as required under the Minimum Conditions of Employment legislation.

"Although there are no penalty rate provisions, payment for working long hours will need to be negotiated.

"Whereas it is an entitlement of employers to expect employees to undertake reasonable overtime, they cannot force staff to be available permanently to work at any time of the day or night."

Mr Kierath said employers should be mindful that the minimum conditions were intended to provide an absolute base below which nobody could go, except in extraordinary circumstances determined by regulation.

Breaches of the minimums, or any attempt to force workers into workplace agreements, would expose employers to heavy fines.

Those who failed to meet the minimum conditions would risk fines of up to $1,000 for each breach.

Those who tried to coerce workers into workplace agreements could be fined up to $10,000 plus $500 per day if the offence continued. Employers who failed to keep proper employment records could be fined $5,000.

"To prevent misunderstanding over the implementation of the new legislation, the Government is embarking on a comprehensive public awareness campaign," Mr Kierath said.

"We want both employers and employees to understand clearly the implications of the legislation and prevent abuses of the system.

"While I am prepared to give the proprietor of the hairdressing salon the benefit of the doubt over any errors that may have been made in trying to secure an agreement with employees, if any blatant cases of attempted abuse are brought to my attention, I place those responsible on notice that I will be quite prepared to name them publicly."

Media contact: Brian Coulter 481 2133 or 222 9595