Australian Er System Assignment
Added on 2020-02-24
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AUSTRALIAN ER SYSTEM2Contents1.Introduction..............................................................................................................................32.7 Eleven inquiry.......................................................................................................................43.Australian ER System..............................................................................................................63.1.Role of State......................................................................................................................63.2.Role of Unions..................................................................................................................84.Implications of Inquiry...........................................................................................................105.Conclusion..............................................................................................................................116.References..............................................................................................................................13(STUDENT NAME, STUDENT NUMBER)
AUSTRALIAN ER SYSTEM31.IntroductionAny organization, whether big or small, cannot work with mere laptops, tables, air conditions or the other non living things. There is a need for the organization to have the requisite human resource for bringing the work of the organization together and for performing the same, so that the objectives and goals, which the organization has set for it, are attained (Foot& Hook, 2008). The failure or success of any organization is proportional to the efforts put in by its employees. And this makes the relations with the employees, all the more important (Crawshaw, Budhwar & Davis, 2014). Employment relations denote the legal relationship between the employee and the employers, which exists when an individual undertakes some work or services of another, based on some conditions and in return, gets paid a particular amount as remuneration (Balnave, 2009). 7 Eleven is one of the prominent franchisees in the nation, which misused the employee relations and created a scandal, which led to the Fair Work Ombudsman launching an inquiry in 2014 where the focus was on the employment practices employed by the franchisee and the compliances with the industrial relations law, especially in the matter of pay and conditions (Danckert, 2016). The following parts present the summary of this inquiry to understand what actually happened in the franchisee. Once this is done, the shortfalls of the Australian employment relations system have been analysed, which were particularly raised through the inquiry conducted in 7 Eleven matter. And before concluding, the implications of this inquiry over the Australian employment relations system have been highlighted. 2.7 Eleven inquiryOn April 9th, 2016, the Fair Work Ombudsman released its report which covered the findings of the inquiry conducted by it into the franchisee network of 7-Eleven. The allegations related to the systemic non-compliances of the federal workplace laws led to the inquiry into the matters of 7 Eleven. The inquiry was started at the backdrop of the continuous reports from the employees of the franchisee, who alleged a major underpayment of their rightful wages. And there was also a rising number of evidence being presented regarding the underpayments being (STUDENT NAME, STUDENT NUMBER)
AUSTRALIAN ER SYSTEM4linked to the false employment records, which were created by the franchisee (Fair Work Ombudsman, 2016a). The best way to put the issue was that the employees were to be paid only half the actual hour award rate of $24.50, or even less, and in case a complaint is made, the boss would threaten the employee with deportation (The Sydney Morning Herald, 2015). The inquiry was initiated to test the allegations which were made by carrying out site inspections in a coordinated manner and through subsequent analysis of the record keeping of a sample of 20 of the franchisee’s stores. Through the investigation, it was disclosed that there had been a shockingly high levels of non compliances of the Fair Work Act, 2009 and Fair Work Regulations, 2009, where the instances included the wilful manipulation of the records so that the underpayment of the wages could be disguised and the entire case was very concerning (Commonwealth of Australia, 2016). The actions and thee motivations of the workplace participants were examined under the inquiry for identifying and addressing the non-compliance drivers. A better understanding of the roles of the franchisee, its employees, its model and culturewere undertaken (Fair Work Ombudsman, 2016a). It was found in the inquiry that the approach of the franchisee in the workplace matters, even though seemingly promoted compliance, it did not detect or address the wilful non-compliances in an adequate manner and in reality, compounded it. This was particularly the falseand misleading records created by the franchisee so as to satisfy payroll and auditing regime and also continued to underpay its employees (Ferguson and Danckert, 2016). The reason why the franchisee could successfully carry out such actions was due to the threat of deportation amongstthe employees. The majority of employees of the franchisee are from non-English speaking backgrounds, particularly from India, China and Pakistan. The employees were typically the male international student visa holders. Even though the rules permit that the students could work for a maximum of 40 hours per fortnight in a legally valid manner, these people were working for up to 50 hours. Due to the fear of being deported, for having breached their visa conditions, the people of this category remained silent and the fraud of 7 Eleven, continued (Fair Work Ombudsman, 2016b). The inquiry conducted by the Fair Work Ombudsman suggested that the payroll section of the store review process failed to properly interrogate the records of the store and the practicesbeing adopted for uncovering the signs of these breaches which the franchisee tried to hide. 7 (STUDENT NAME, STUDENT NUMBER)
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