Week 5 Labour Law

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Questions and Answers

Which of the following is NOT a method by which employment can be terminated, according to the provided materials?

  • Employee reaching a predetermined retirement age (correct)
  • Operation of law, such as company liquidation
  • Without notice, such as summary dismissal
  • Agreement between employer and employee

In cases of wrongful dismissal, common law generally provides for substantial damages to cover distress and reputational harm suffered by the employee.

False (B)

What is the significance of the Elisha v Vision Australia [2024] case in the context of common law remedies for dismissal?

It challenges the traditional bar on non-economic loss in wrongful dismissal cases, suggesting psychological injury may be foreseeable and thus compensable.

Under the Fair Work Act, employers are generally restricted from entering into new, non-ongoing contracts beyond ______ years, subject to several exceptions.

<p>2</p>
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Match the term with the correct labor law definition.

<p>Summary Dismissal = Termination of employment by the employer without notice due to the employee's serious misconduct or fundamental breach of contract. Constructive Dismissal = Situation where an employee resigns due to the employer's conduct making the working conditions so intolerable that a reasonable person would feel compelled to leave. Repudiation = When one party demonstrates an intention no longer to be bound by the employment contract, allowing the other party to terminate the contract. Abandonment = When an employee, without notice or permission, fails to attend work, indicating an intention to end the employment relationship.</p>
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What does FWA s 381 aim to achieve in the context of dismissal rights?

<p>To ensure a 'fair go all round' for both employers and employees. (B)</p>
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An employer's right to 'pay out notice' is a feature unique to common law and is not found in the Fair Work Act.

<p>False (B)</p>
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In the context of probationary employment, where does 'probation' fit in relation to other employment types?

<p>Probation is a period of assessment within 'permanent' or ongoing employment, not a separate employment type like fixed-term or casual.</p>
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The principle of 'at will' employment, characterized by a very short notice period, is more commonly associated with ______ law than statutory law.

<p>common</p>
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According to the material, what is a circumstance in which a unilateral termination by an employee might be 'reversed'?

<p>If the termination occurred in the 'heat of the moment' and was quickly revoked. (D)</p>
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If a contract is silent on the matter of notice, common law implies a 'reasonable' notice period, but the Fair Work Act (FWA) sets only the minimum standard.

<p>True (A)</p>
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According to the material, which of the following is not an exception that allows employers to engage employees on fixed term contracts beyond two years?

<p>The employee requests a fixed term contract for personal convenience. (B)</p>
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What is the basic premise of 'Unfair Dismissal' law as introduced in week 6?

<p>To balance the interests of both employers and employees.</p>
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Automatic Fire Sprinklers v Watson, a common law remedy, determined employees had to accept ______ and seek new work.

<p>repudiation</p>
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Which scenario will typically result in a 'wrongful dismissal/termination' claim?

<p>The employer breaches fixed term or high-salary contracts (A)</p>
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Damages for 'wrongful dismissal' usually equate to the notice period damages.

<p>True (A)</p>
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What does the case Addis v Gramophone (1908) state?

<p>There will traditionally be no damages for distress, reputation.</p>
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The Fair Work Act gives an employer right to ______ notice.

<p>pay out</p>
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Match the condition of employment to its corresponding element.

<p>Sliding scale = &lt; 1 year service = 1 weeks notice / &gt; 5 years service = 4 weeks notice Extra week, if over 45 and &gt;2 years service. Fair Work Australia Scale is minimum = Higher periods are agreed - if not implied - for senior jobs, professions... Abandonment = When an employee, without notice or permission, fails to attend work, indicating an intention to end the employment relationship.</p>
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Which of these scenarios is likely to be considered termination without minimum notice under the Fair Work Act?

<p>Breach of contract by an employer (D)</p>
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In the given scenario, what is the most significant factor that complicates the club's ability to discipline Mr. Bloggs for his out-of-hours conduct?

<p>The lack of an explicit clause in his contract prohibiting conduct that brings the club into disrepute. (C)</p>
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If Mr. Bloggs had posted the video himself, it would be more difficult for him to argue that his actions were purely out of hours conduct.

<p>True (A)</p>
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What specific action could the club take, short of dismissal, to address Mr. Bloggs' conduct, provided it is a lawful and reasonable direction?

<p>Require him to undergo alcohol counseling and perform community service.</p>
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The absence of an ______ prohibiting conduct that brings the club into disrepute makes it difficult to discipline Mr. Bloggs.

<p>explicit clause</p>
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Match each action with its potential legal consequence for Mr. Bloggs, assuming the club seeks to discipline him:

<p>Out-of-hours conduct = Difficult to discipline without explicit contractual clause Posting video himself = Easier to argue breach of proper conduct Refusal to take counseling = Potential breach of lawful and reasonable direction Second similar offense = Stronger grounds for dismissal</p>
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What distinguishes the Moreton Bay College case from the scenario involving Mr. Bloggs?

<p>The Moreton Bay College case was deemed purely out-of-hours conduct, whereas Mr. Bloggs' conduct has a necessary impact on his employer's reputation. (D)</p>
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The fact that Mr. Bloggs is the club captain is irrelevant to the consideration of whether his conduct breaches his contractual obligations.

<p>False (B)</p>
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What must the club demonstrate to successfully argue that Mr. Bloggs' out-of-hours conduct constitutes a breach of contract?

<p>A necessary connection between his conduct and the employer's reputation.</p>
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Unlike purely out-of-hours conduct, actions in the ______ are more likely to be considered a breach of contract for a high-profile player like Mr. Bloggs.

<p>public eye</p>
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Match each factor with its relevance in determining whether Mr. Bloggs' conduct constitutes a breach of contract:

<p>Out-of-hours = Generally protected unless directly impacts employer Club Captain = Raises standards of expected conduct Explicit Clause = Strengthens case for breach Drunkenness = May mitigate intentionality of actions</p>
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What legal principle traditionally gives employers more leeway in directing employees regarding where they can be sent to work?

<p>The principle of 'implied agreement' based on the nature of the organization. (A)</p>
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Post-COVID, it is always unlawful and unreasonable for employers to direct employees to return to the office if their work can be done from home.

<p>False (B)</p>
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Aside from individual contracts, what other mechanism might provide employees with a right to elect to work from home, even if the employer prefers them in the office?

<p>A modern award amendment.</p>
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Under the Fair Work Act, employees with ______ have a right to request flexible working arrangements.

<p>carer responsibilities</p>
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Match each term with its legal consequence in the context of workplace location:

<p>Implied Agreement = Allows employers to direct work location Modern Award Amendment = May grant right to work from home Flexible Working Request = Must be reasonably considered by employer Managerial Prerogative = Common law tends to favor it</p>
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What legal concept is NOT directly tied to the Fair Work Act?

<p>Wrongful dismissal. (D)</p>
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A true fixed-term contract includes a notice period.

<p>False (B)</p>
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What legal doctrine might apply if the work an employee was hired to do becomes prohibited by law?

<p>Frustration of contract</p>
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Repeated low-level breaches of contract can become ______, allowing the other party to end the contract.

<p>repudiatory</p>
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Match each concept with its definition:

<p>Repudiation = Demonstrating intent not to be bound by contract Summary Dismissal = Termination without notice for serious misconduct Abandonment = Employee fails to show up without explanation Constructive Dismissal = Employer conducts forces employee to resign</p>
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According to the content, why does the Fair Work Act build upon the common law regarding termination of employment?

<p>To provide greater protections for ordinary workers who are not on high salaries. (B)</p>
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Under common law in Australia, an employer must provide reasons for terminating an employee's contract.

<p>False (B)</p>
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What is the primary remedy available to an employee who has been wrongfully dismissed under common law?

<p>Monetary Damages</p>
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Unlike in Malik's case in the UK, Australian common law traditionally barred claims for damages related to ______ resulting from wrongful dismissal.

<p>distress</p>
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Match each term with its typical outcome or characteristic in termination cases:

<p>Wrongful Dismissal = Damages limited to notice period or fixed term Summary Termination = No notice period required Injunctive Relief = Rarely granted except for restraint of trade Fixed-Term Contract = Employer must pay out unless breach</p>
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What key aspect of the case Alicia v Vision Australia represents a significant shift in Australian employment law?

<p>The recognition that psychological injury can be a foreseeable consequence of a contract breach. (B)</p>
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After Alicia v Vision Australia, it is expected that employers will generally be more hesitant to incorporate policies and procedures into employment contracts.

<p>True (A)</p>
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Under the Fair Work Act, what is the general limit on the duration of new fixed-term or contingent contracts?

<p>Two years</p>
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The statutory limits on fixed-term contracts do not apply if the employee's salary is over the ______.

<p>high income threshold</p>
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Match each circumstance with its potential impact on employment termination:

<p>Exceeding two-year limit = Breach of statutory limits Genuine redundancy. = May allow for termination but with entitlements High-Income Threshold = Exempts from fixed-term contract limits Ministerial Regulation = May create exceptions to fixed-term rules</p>
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What describes 'at-will employment'?

<p>Employment with a short notice period, providing maximum flexibility to employers. (C)</p>
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Statutory minimum notice periods are always longer than implied or agreed upon notice periods under common law?

<p>False (B)</p>
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What action must an employee take to rescind a resignation effectively?

<p>Revoke it quickly at the next reasonable opportunity.</p>
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Rather than managerial control, the Fair Work Act attempts to rebalance things with some predictability and ______ for the average employee.

<p>Protection</p>
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With respect to unfair dismissal, match each term with its significance in relation to termination:

<p>Without Valid Reason = Unfair Dismissal law protects this right Reasonable Procedure = Protects rights outlined by Fair Work act Proportional response = Required of employer for termination Minimum Service Periods = Determines eligibility for protection</p>
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Which action can the Fair Work Ombudsman assist an employee with?

<p>Interpreting and enforcing Awards. (A)</p>
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If an high-wage employee's contract is fixed-term, fixed-wage (for a number of years), a bank or mortgage lender would generally approve the employee's loan application.

<p>True (A)</p>
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To successfully rescind a resignation, one must be able to characterize it as being done 'in the [blank]'.

<p>Heat of the moment</p>
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______ doctrine may apply if the contract becomes hard to perform.

<p>Frustration</p>
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Match each termination/cessation of employment with a description

<p>Operation of The Law = Outside influence by laws Summary Dismissal = Usually for misconduct Probation = Short term and testing period Casual Employment = Lack of continuing rostering</p>
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In the context of employment contracts, what does 'repudiation' by an employer typically involve?

<p>Demonstrating an intention to no longer be bound by a fundamental term of the contract, such as unilaterally reducing wages. (A)</p>
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Under common law, an employer can explicitly state that an employee is terminated and prevent them from working during the notice period, while still fulfilling their contractual obligations by providing pay in lieu of notice.

<p>False (B)</p>
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What is 'constructive dismissal' under common law, and what must an employee demonstrate to claim it?

<p>Constructive dismissal occurs when an employer's conduct is so unreasonable that the employee is forced to resign. The employee must demonstrate that the employer repudiated fundamental obligations.</p>
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A contract can be frustrated by circumstances such as the ______ of a sole employer, which makes the continuation of the contract impossible.

<p>death</p>
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Match common law remedies for breach of contract with their descriptions:

<p>Equitable Remedy = A court order compelling a party to fulfill their contractual obligations, rarely granted in employment contexts due to the principle against forcing personal service. Damages = Monetary compensation awarded to the innocent party to compensate for losses suffered as a result of the breach of contract. Injunction = A court order restraining a party from doing something, more commonly granted in employment contexts to enforce restraint of trade clauses rather than compel employment.</p>
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What is the significance of the Alicia and Vision Australia case in relation to common law remedies for breach of employment contract?

<p>It overturned the 116-year-old rule in Addison Gramophone Company, allowing for damages for psychological injury. (D)</p>
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If an employee is summarily dismissed for gross misconduct, the employer is still legally obligated to provide the minimum statutory notice period as defined by the Fair Work Act.

<p>False (B)</p>
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Describe the circumstances under which an employee's 'abandonment' of employment may be considered a repudiation of contract.

<p>Abandonment occurs when an employee fails to attend work without explanation, leading the employer to reasonably conclude that the employee no longer intends to be bound by the employment contract. In these situations, the employer does not need to adhere to notice period.</p>
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The doctrine of ______ may apply when unforeseen circumstances render a contract impossible to perform, even if neither party is at fault.

<p>frustration</p>
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Match the termination event with its description:

<p>Frustration of Contract = Termination because an unforeseen event renders the contract impossible to fulfill. Summary Dismissal = Termination by the employer without notice due to the employee's serious misconduct. Repudiation by Employee = The employee's actions indicate an intention to no longer be bound by the employment contract. Wrongful Dismissal = Termination by the employer in breach of the employment contract, such as without proper notice.</p>
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Which of the following is the MOST accurate description of 'at-will employment' in the context of labor law?

<p>A situation where an employee has a short notice period, giving maximum flexibility to the employer. (D)</p>
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The Fair Work Act provides an exhaustive list of circumstances under which an employer can terminate an employee's contract.

<p>False (B)</p>
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Explain how a 'probationary period' affects an employee's rights in the event of termination.

<p>An employer can assess your capacity and performance during a probation. Under the law of contract, if the employer keeps any of the explicit or necessarily any implied promises about how the probation was to be assessed, they can let you go.</p>
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In cases of constructive dismissal, the employee must demonstrate that the ______ breached a fundamental term of the employment contract.

<p>employer</p>
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Match the example scenario with what conduct would be considered:

<p>Absent from Work Without Explanation = Abandonment Insolence to Managers = Serious Repudiatory Conduct/Insolence Stealing from Employer = Gross Misconduct</p>
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In what way did Fair Work Act attempt to change the Common Law?

<p>The Fair Work Act provides some levels of security so much as predictability and some protections for employees. (B)</p>
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The amount of damages that can be recovered at common law upon wrongful termination is unlimited.

<p>False (B)</p>
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What factors does the common law consider when determining a 'reasonable' notice period?

<p>Seniority of position, length of service, and the time it takes to find new employment.</p>
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An employer cannot get injunction to force the employee to continue working for someone, they're is providing a ______.

<p>negative injunction</p>
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Match terms and what they relate:

<p>Damages = Injured Party Losses = Reasonable Expectations Employee = Employer</p>
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Which of the following statements is correct in light of Alicia and Vision Australia?

<p>This should lead to the employment to have carefully drafted clauses. (C)</p>
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The High Court can not reshape contract law.

<p>False (B)</p>
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Does the parliament provide some provisions?

<p>The parliament is providing section 323EG which you have to look at and read, and there are links there.</p>
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As a general rule, employers should enter into new contracts that will last beyond ______.

<p>2 years</p>
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Associate this term with its context:

<p>Fixed Term Contact = Employer's Flexibility Salary Over Threshold = Not Exploited Government Grant = Soft Money</p>
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Can an employee sue?

<p>Yes, it can only be heard in certain court with certain criteria. (A)</p>
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High level of skills have a higher notice period.

<p>True (A)</p>
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What is significant about 45?

<p>Once people hit 45, it will be much harder to find new work.</p>
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Getting marched to the doors is considered ______.

<p>customary</p>
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Match with correct context:

<p>Reversed Unilaterally = Heat of the moment Thinking = The law Common Law = Careful Action</p>
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Why is common law seen to have a problem?

<p>Maximum flexibility provides a one-sided area where the law is at risk. (A)</p>
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It is important to ignore tutorials.

<p>False (B)</p>
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Can legal advice be included in the answer?

<p>Your are asked to give some sort of practical advice as well as, uh, sort of legal advice.</p>
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A Practical problem is that the ______.

<p>facts</p>
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Matching the types of tests of termination to its description

<p>Proper process = The procedures are being implemented is reasonable. Natural Justice = There should be a proportional response. Reasonableness = The end result and the final decision is fair.</p>
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Which situation is most likely to be subject to Fair Work?

<p>Average Employees. (A)</p>
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Economic transactions occur most of the time with statutory law.

<p>False (B)</p>
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Is this law likely to experience any future amendment?

<p>If we get a conservative government and if the Senate is willing to do a deal, I suspect this will be one of the first things that will be amended and possibly repealed.</p>
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Remember this important point of ______.

<p>abandonment</p>
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Which of the following factors would most strongly suggest that an employer's out-of-hours conduct policy could be applied to discipline an employee?

<p>The conduct directly and foreseeably damages the employer's reputation. (B)</p>
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An honorary position, such as a club captain, is generally considered a guaranteed contractual right for an athlete.

<p>False (B)</p>
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What is the primary legal challenge in disciplining an employee for out-of-hours conduct?

<p>Establishing a necessary connection between the conduct and the employer's reputation or employment relationships.</p>
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An explicit contractual term that prohibits an athlete from bringing the game or club into public _________ strengthens the club's ability to discipline the athlete for misconduct.

<p>disrepute</p>
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Match the following employment scenarios with their legal implications:

<p>Employee working at an organization with multiple outlets = Implied term to work at any outlet. Employer requiring employees to return to the office post-COVID = Likely lawful and reasonable direction if the employment contract was fixed at the time of hiring. Union fighting for the right to work from home = May lead to an award amendment. Employee with carer responsibilities requesting flexible working arrangements = Right to request flexible working arrangements.</p>
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Which factor most significantly influences the determination of a 'reasonable notice period' at common law?

<p>The seniority and skills of the employee. (D)</p>
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A true fixed-term contract typically includes a notice period.

<p>False (B)</p>
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Define 'repudiation' in the context of employment contracts.

<p>Repudiation is conduct that demonstrates an intention to no longer be bound by the fundamental terms of the contract.</p>
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__________ dismissal is the term used when an employer terminates an employee's contract without providing the required notice due to the employee's serious misconduct.

<p>Summary</p>
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Match the following termination types with their definitions:

<p>Constructive Dismissal = Employer conduct that forces the employee to resign. Wrongful Dismissal = Termination in breach of contract. Summary Dismissal = Termination without required notice. Abandonment = Employee fails to show up to work without communication.</p>
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What is the significance of the Alicia v Vision Australia case in Australian employment law?

<p>It overturned the Addison Gramophone rule, allowing damages for psychological injury. (D)</p>
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Under the Fair Work Act, an employer can always choose to pay out the notice period instead of requiring the employee to work through it, even if it is not in the contract.

<p>True (A)</p>
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What is required for an employee's resignation to be considered reversible under common law?

<p>The resignation must have been made in the heat of the moment, and the employee must revoke it at the next reasonable opportunity.</p>
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Under Section 333EG, is it permitted for temporary staffing purposes to be more than 2 years for staff that are not already under the salary cap unless there is the use of __________.

<p>Locums</p>
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Match the following scenarios with the correct action under common Law:

<p>Boss says you'r resignated and well thoughout = Not reversible under Common Law I am resigning = Maybe heat of the moment, needs to be rescinded next opportunitiy.</p>
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Which of the following is NOT an exception to the new limits on the use of fixed-term contracts under the Fair Work Act?

<p>The employer is trialling the potential of that employee. (A)</p>
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The Alicia vs vision Austraila decision has lead to employers being weary of policy creation, as well as the implementation of disclaimers for potential court.

<p>True (A)</p>
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What is abandonment in employment law?

<p>When an employee does not show up and does not give an explanation as to where they have abandoned their position.</p>
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The use of At-Will employemnt shows what kind of benifit to the employer__________.

<p>flexibility</p>
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Match the description of the employee to their given minimum statutory notice period

<p>Worked 1 week = 1 week Worked 3 Years = 3 weeks Worked 5 years, age 46 = 5 weeks</p>
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Flashcards

Employment Ends by Agreement

Employment ends through mutual agreement, like giving notice or the natural end of a fixed-term contract.

Employment Ends by Operation of Law

Employment ends due to legal factors (company liquidation), impossible situations, or activities ruled as illegal.

Employment Ends Without Notice

Termination without notice occurs through repudiation, summary dismissal by the employer, or constructive dismissal sought by the employee.

Wrongful Dismissal Claim

A wrongful dismissal claim alleges the employer breached the employment contract when terminating.

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Employment Contract Damages

Damages are usually limited to a pre-agreed amount or 'reasonable notice' based on seniority, length of service, and job skills.

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Limits on Fixed-Term Contracts

Employers are limited to offering new, non-ongoing (fixed term or repeat) contracts beyond 2 years.

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Termination Notice

An employee must receive minimum notice when an employment contract is terminated.

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Minimum Notice Period

Notice increases with service length. 1 week for under 1 year, 4 weeks for over 5 years, plus an extra week if over 45 with more than 2 years service.

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Sliding Scale (Notice)

A sliding scale is a method of calculating notice owed based on the length of employment.

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Causes of Action

Termination without minimum notice, unfair dismissal, and adverse action.

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Mr. Bloggs

A rugby star and club captain with a renewed contract.

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Bringing the Club into Disrepute

Actions negatively impacting an employer's image.

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D-head Policy

A written policy aiming to improve behavior.

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Directing Employees Back

Directing employees to work at a specific location.

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Right to Request Flexible Arrangements

Flexibility to adjust work location and hours.

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Probation

Assessing new hires during an initial period.

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Doctrine of Frustration

Ending employment due to external events.

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Repudiation

An explicit, fundamental violation of contract terms.

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Summary Dismissal

Employee conduct justifies immediate termination.

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Abandonment

Leaving a job without notice or explanation.

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Gross Misconduct

Termination due to serious misconduct.

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Procedural Justice

Fair hearing and just procedures

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Common Law Remedies

Focus usually with monetary recompense.

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Alicia and Vision Australia

High Court abolished requirement of economic recompense alone.

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At-Will Employment

Employment for an indefinite amount of time

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Study Notes

Termination of Employment

  • Focus is on employment endings, dismissal rights, common law claims, FWA limits on fixed-term contracts, and notice periods.
  • Unfair dismissal, unlawful termination, and redundancy entitlements are covered later.

How Employment Ends

  • Employment ends by agreement, notice, fixed-term elapse, or de-rostering true casuals.
  • Termination occurs by operation of law, like company liquidation, frustration, or illegality.
  • Employment ends without notice for repudiation by either side, employer's 'summary dismissal' right, or employee's 'constructive dismissal' right, including abandonment.

Rugby Star Example

  • Mr. Bloggs, a rugby star and club captain, had his contract renewed in 2022 for 5 years at $600,000 per annum.

Implications of Conduct on Contract

  • A video circulated showing Bloggs drunk, naked, and simulating sex acts with a football.
  • The question is whether Bloggs breached any implied obligation, like duty of loyalty or proper conduct.
  • Out-of-hours conduct can be a breach if it impacts employment relationships or the employer's reputation.
  • It's debatable whether Bloggs' conduct, though embarrassing, necessarily impacts the club's reputation.

Club Captain Higher Duties

  • As club captain, Bloggs has higher duties compared to a junior player.
  • The key is finding a necessary connection between his conduct and his obligations to the club.
  • If the contract included a term against bringing the game or club into disrepute, it would be easier to argue a breach.

Management of Breach

  • Instead of dismissal, the club could require alcohol counseling or community service.
  • Losing the club captain position is another possibility.
  • Elite sports contracts often have clauses to avoid fuzzy arguments about proper conduct.
  • If Bloggs didn't positively share the video, it could be argued as purely out-of-hours conduct.

Hypothetical scenario

  • If simulating sex acts with a football was illegal, it would more clearly invoke breach of proper conduct.
  • Public conduct is viewed similarly to sharing on social media.
  • Clubs might have a "Dhead policy" for cleaning things up.

Place of Physical Work

  • Traditional problem of physical work location is being reevaluated post-COVID
  • Shift to location no longer mattering for certain types of information work

Lawful & Reasonable For Employers

  • Is directing employee back to the office lawful and reasonable, despite performing the same task to the same standards from home?
  • Traditionally the High Court would side with managerial prerogative.
  • Unions are fighting test cases for modern awards and Fair Work Commission to implement rights to elect to work from home if work can be sufficiently done from home.

Flexible working conditions

  • Fair Work Act provides rights to request flexible working arrangements if the worker has carer responsibilities
  • It is on a case to case basis whether denying them working from home is deemed unreasonable

Nature of Modern Law offices

  • If the employers want to attract and retain certain types of staff, many of them allow workers to work from wherever you want
  • Advice about workplace health & safety conditions when working from home is given to make workers aware

Contract Law

  • Fundamentally employers would be able to issue direction to where the worker can work, or be subject to discipline and possible dismissal
  • Another example of common law tending to side with managerial prerogative if a matter is otherwise debatable

Termination of Employment

  • Focus is on employment endings, dismissal rights, common law claims, FWA limits on fixed-term contracts, and notice periods.
  • Unfair dismissal, unlawful termination, and redundancy entitlements are covered later.

How Employment Ends

  • Employment ends by agreement, notice, fixed-term elapse, or de-rostering true casuals.
  • Termination occurs by operation of law, like company liquidation, frustration, or illegality.
  • Employment ends without notice for repudiation by either side, employer's 'summary dismissal' right, or employee's 'constructive dismissal' right, including abandonment.

Probation Within Employment Types

  • 'Permanent' employment is ongoing employment.
  • Probation is a specific type of employment status.
  • Fixed term employment runs for a specific period.
  • A 'true' casual role provides no guarantee of ongoing work.

Rationale for Dismissal Rights

  • The employment contract is rooted in managerial control.
  • Few common law rights exist for employees, with damages for 'wrongful dismissal' typically limited to the notice period or 'summary termination' for serious misconduct.
  • The Fair Work Act (FWA) s 381 aims for fairness and offers limited 'job security' through concepts like valid reason, due process, and proportional response.

Wrongful Dismissal/Termination Claim

  • Damages can be claimed for dismissal in breach of contract.
  • Wrongful dismissal claims are common in cases where an employer breaches fixed term or high-salary contracts.
  • Employers often pay out the notice period or the term of contract to resolve terminations.
  • 'Summary' termination involves the election to terminate if the other side is in 'fundamental breach' or has 'repudiated' their duties, with no requirement to give notice.

Common Law Remedies

  • Damages are usually limited to pre-agreed or 'reasonable notice', varying by seniority, length of service, and rarity of skills.
  • An employee must accept repudiation and seek new work, as seen in Automatic Fire Sprinklers v Watson (1946).
  • Traditionally, damages for distress and reputation were not awarded, as per Addis v Gramophone (1908), but this has changed as seen in Elisha v Vision Australia [2024].
  • Equity is very reluctant to bind parties to a contract of 'personal service'.

Elisha v Vision Australia: [2024] HCA 50

  • Elisha worked 9 years with Vision Australia (VA).
  • A hotel proprietor claimed Elisha was 'intimidating' during a work trip.
  • Elisha was suspended pending investigation and dismissed within 10 days.
  • The manager described a 'pattern of aggression' by Elisha but didn't convey this to Elisha, breaching the 'Disciplinary Procedure' incorporated into the contract.
  • Elisha developed serious depression as a result.
  • The trial judge called the investigation a 'disgrace' and awarded $1.4m in damages for breach of contract.
  • Vision Australia cited Addis as a bar to non-economic loss, but the High Court of Australia (HCA) found Addis to no longer be a law in Australia as psychological injury was foreseeable.
  • It remains unclear if the implied duty of care covers investigations, not just workplace safety.

Fixed and Contingent Term Contract Limitations

  • Employers generally cannot enter new, non-ongoing contracts beyond 2 years.
  • Limitations cover whether a single fixed term, or one with the option to extend, or a repeat/consecutive term (for substantially same position), exceeding 2 years
  • Many exceptions exist in situations such as: Salary over the 'high income threshold'; 'Distinct task' needing 'specialised skills'; Essential work demand or to fill temporary absence; Government grant; If allowed by Award or Regulation.

Causes of Action under Fair Work Act

  • Termination without minimum notice (s 117).
  • Unfair Dismissal (s 385)
  • Adverse Action (Part 3-1) covers cases of victimisation or discrimination

Minimum Notice for Permanent Employment

  • The sliding scale states employee should receive less than 1 year service = 1 weeks notice, > 5 years service = 4 weeks notice, and an extra week if over 45 and >2 years service.
  • Common law implies 'reasonable' notice if a contract is silent.
  • Fair Work Act (FWA) scale serves as a minimum requirement.
  • Higher notice periods may be agreed upon or implied for senior jobs and professions.
  • FWA gives the employer the right to pay out notice, which applies to both sides, including an employee who is leaving.

Can a Unilateral Termination be 'Reversed'?

  • Reversal is only possible if the termination occurred in the 'heat of the moment' and is revoked quickly.

Common Law in Context

  • Common law defines 'at will' employment as being employed with very short notice period.

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