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Workplace Relations Update - June 2009 - CompliSpace

Workplace Relations Update

1 June 2009

In this update we look at:

  • The Risk of Not Following Correct Discipline and Termination Procedures

  • The Incidence and Hidden Cost of Bullying and Harassment in the Workplace


The Risk of Not Following Correct Discipline and Termination Procedures



The NSW District Court has awarded an employee $133,407 in damages because his employer dismissed him without notice, and without giving him an opportunity to respond to serious allegations relating to fraud and deception.

The case of Redman v Vertican Group Limited (No 2) [2009] NSWDC 43 highlights the need for employers to have properly drafted employment contracts and to follow correct procedures when dismissing an employee.

In this case, Vertican Group wrote to Mr Redman setting out details of the alleged serious misconduct and, in the same letter, terminated Mr Redman’s employment. Mr Redman was not provided with an opportunity to respond and the company did not follow the dispute resolutions procedures set out in Mr Redman’s employment contract. The District Court of NSW found that Vertican had breached its contract with Mr Redman by not following the dispute resolution procedures set out in his employment agreement.

Properly drafted employment contracts and discipline and termination procedures considerably reduce the risks associated with the dismissal of employees.

The Incidence and Hidden Cost of Bullying and Harassment in the Workplace



CareerOne.com.au recently released a survey that found 62% of all respondents had been bullied in the workplace and 29% had been the victim of some form of sexual harassment. Over 70% of incidents were perpretrated by a more senior employee. The majority of victims did not report the incident.



These alarming statistics should send at least two clear messages to employers. Firstly, it is likely that an incident of bullying or sexual harassment will occur in your workplace at some time in the future. Secondly, if you ignore this possibility, you do so at your peril. Whilst there is often a focus on the cost of legal actions and damages awarded, the reality is that the hidden costs are likely to significantly outweigh these direct costs. Take a moment to consider the hidden costs associated with:

  • a decline in productivity, where a negative atmosphere impacts on staff morale.
  • the loss of staff loyalty. A decline in customer relationship management standards, high staff turnover and an increased likelihood of theft of intellectual property and internal fraud are a few of the risks that come to mind.
  • the stifling of internal communications and debateThe reality is that in many workplaces, individuals who display bad behaviour often dominate, creating a culture of fear where others are reluctant to “speak their minds”. Bad behaviour stiffles innovation and business improvement.

A copy of the results of the CareerOne survey are available at our Workplace Relations Resource Centre.

What CompliSpace Can Do To Assist




Both risks raised in this Workplace Relations Update can be effectively mitigated through strong leadership and the development and implementation of appropriate human resources and workplace safety programs.

CompliSpace has developed comprehensive human resources and workplace safety programs that can be quickly tailored to your organisation and delivered on-line. These programs are regularly updated to reflect legislative changes.

CompliSpace clients, who subscribe to our Human Resources module, will receive and have available for publication on their sites, up-to-date policies and procedures that have been drafted to meet the new obligations that will come into force with the commencement of the Fair Work Act on 1 July 2009.

CompliSpace recently published a comprehensive whitepaper dealing with the impact of the Fair Work Act. This whitepaper is available through our Workplace Relations Resource Centre.
 

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