Fair Work Ombudsman v HTA Farmings Pty Ltd Presentation: BMA583

This presentation analyzes the Fair Work Ombudsman v HTA Farmings Pty Ltd [2017] FCCA 1847 case, focusing on the legal issues of the case and its relevance to human resource management (HRM) and employment relations. The presentation outlines the involvement of the Fair Work Ombudsman (FWO), the issues of underpayment and record-keeping, and the penalties imposed. It applies the Harvard HRM model, examining situational factors, stakeholder interests, and HR policies. The presentation further explores Maslow's hierarchy of needs and concludes with recommendations for recruitment companies to avoid underpayment and ensure employee satisfaction, emphasizing the importance of the Harvard model and Maslow's hierarchy of needs to improve organizational effectiveness. The presentation also references the Harvest Trail Inquiry Report 2018.

MANAGING PEOPLE AND
THE EMPLOYMENT
RELATIONSHIP
Fair Work Ombudsman v HTA Farming's Pty
Ltd [2017] FCCA 1847

INTRODUCTION
 The power point presentation talks about the
case law of Fair Work Ombudsman v HTA
Farmings Pty Ltd [2017] FCCA 1847.
 This presentation includes the major issues
raise in the case due to which was legally
considered.
 The relevance of the case is explained with
the help of the human resource management
as well as employment relations.

OVERVIEW OF CASE
 The case law majorly involved two parties
one is fair work ombudsmen and another one
is HTA farming Pvt Ltd.
 FWO is an individual statutory agency of the
Australian government that offers as the
central point of the contract majorly for the
free advice as well as the particulars
connected to the Australian countrywide
workplace relations system.

CONTINUE…
 The federal circuit courts are employee Hire
Company that is HTA farming Pty Ltd
manager of the company that is Tuan Anh Le.
 It has been found that HTA farming also
contravened pay slip laws as well as they
failed to have the work agreements in place
for personnel who were paid piece rates.

FWO INVOLVEMENT IN CASE
 FWO pay and conditions tool (PACT) can
provide the offer the business owners to
calculate rates of pay that is applicable to
their business as well as templates for the
pay slip as well as time-and wages sheets
that are accessible for the free download.

ISSUES IN CASE
 In the case, FWO national inquiry remained
into the exploitation of the overseas
employees within Australia, Harvard trail has
enhance to the agency with the motive to
launch the legal action against the labour-
hire operators because of the supposedly
flouting record possessing laws.
 In this case, FWO claims that the company
has lack of the basic records of the hours
worked that banned its examiners majorly for
examining whether nearly all workers were
being salaried for their least legal rights.

CONTINUE…
 In the case issue, the underpayments of
entitlements could be evaluated for the just
six out of the 265 employees that are
determined with the inspector for identifying
that the employees has been underpaid with
a total of $316 that has been mostly back-
paid.

PENALTIES
 FWO claimed that HTA farming
allegedly also contravened laws
related to pay slip as well as
they failed to maintain a piece
of work arrangements in place
majorly for the personnel who
were paid piece rates.
 The penalty which was majorly
faced by HTA includes up to
$51,000 per contravention and
on the same side penalties of up
to $10,200 are faced by Mr Le.

HUMAN RESOURCE MANAGEMENT
 HRM comprises of the set policies that are
majorly designed to maximize the integration,
commitment of personnel, flexibility as well as
different quality of work.
 The Harvard model of HRM is applied to the case
law which include different elements that are
discussed below: -

HARVARD MODEL
 The Harvard model of different factors are
linked to the case because in this case
Australian government agency sues the
recruitment company HTA farming’s majorly
for the failure to maintain the personnel
records and alleged underpayments.

SITUATIONAL FACTORS
 The situational factors that
are affected due to this
case and happening
include labour market that
gets affected because the
labour are underpaid due
to which the other
companies also offer less
amount to employees.

CONTINUE…
 In addition, the economy will get affected
because employees will get the less payment
which influences their purchasing power in
the economy.
 The working of the HTA farming has leads to
legal claim by the FWO which affected the
societal values within the market of Australia.

STAKEHOLDER’S INTEREST
 The stakeholder’s interest involves different
elements which include employees,
companies, government, society and others.
 The situation affects the companies because
according to the labour market they pay
fewer amounts to the employees which affect
their interest.

CONTINUE…
 HTA farming paid fewer amounts to the
employees which affected their rights to get
the minimum payment which also affects the
government as their regulations are not met.
 The employees who are being hired by the
companies also find that it is considered one
of the major factors that affect society and
their interest remained unfulfilled.

HR POLICIES
 As per the case, HR policies are prepared in
such a way that it deals with the situation
and meet the interest of shareholders
interest.

REWARD AND WORK SYSTEM
 There should be HR policies for
reward as well as work
systems to employees to
whom HTA farming Pvt Ltd
which helps the employees to
maintain the interest of
shareholders.
 These rewards will make
employees to maintain their
interest with the help of HR
policies because it provides
the employees with high
amount or payment.

HR OUTCOMES
 The improved HR policies lead to high
commitment among employees due to
rewards and enhanced work system due to
which they remain for longer time within the
company.
 Along with this, HTA Farming company as
well as other companies that provide the
recruitment ensures the employee remain
commitment.

LONG-TERM CONSEQUENCES
 The policies as well as improved outcomes of
HR lead to effectiveness of the organisational
because performance of employees will
improve in the long term which will lead to
the improvement in stakeholder’s interest
and situational factors.

MASLOW'S HIERARCHY OF NEEDS
 It is a motivational theory in psychology that
comprises the five-tier model of human
needs.

CONTINUE…
 The case law shows that FWO and HTA
Company should follow this model through
which they can motivate the employees by
understanding and fulfilling it.

CONCLUSION
 In the end of the presentation this can be
said that any recruitment company should
not underpay the employee as this affects
their interest due to which they don’t
contribute effectively within the organisation.
 In addition, the model of Harvard and
Maslow's hierarchy of needs should be
followed that leads to employee’s
satisfaction.

REFERENCES
 Australian Government (2017) Labour-hire operator allegedly flouts laws relating to
overseas workers on Queensland farms [Online]. Available from:
https://www.fairwork.gov.au/about-us/news-and-media-releases/2017-media-releases/febr
uary-2017/20170207-hta-farmings-litigation
[Accessed on 10th August 2019]
 Bratton, J. and Gold, J. (2017) Human resource management: theory and practice.
Palgrave.
 Cascio, W.F. (2015) Managing human resources. McGraw-Hill.
 Fair Work Ombudsman (2017) Australia: Govt. agency sues recruitment company HTA
Farmings for failure to keep employees' records & alleged underpayments [Online].
Available from:
https://www.business-humanrights.org/en/australia-govt-agency-sues-recruitment-compan
y-hta-farmings-for-failure-to-keep-employees-records-alleged-underpayments
[Accessed on 10th August 2019]
 Fair Work Ombudsman (2018) Harvard Trail Inquiry [Online]. Available from:https
://rlc.org.au/sites/default/files/attachments/fair-work-ombudsman-harvest-trail-inquiry-rep
ort.pdf
[Accessed on 10th August 2019]
 Inside Small business (2017) Labour-hire operator penalised for flouting pay slip laws
[Online]. Available from:
https://insidesmallbusiness.com.au/planning-management/labour-hire-operator-penalised-
for-flouting-pay-slip-laws-for-overseas-workers
[Accessed on 10th August 2019]
 Medianet (2017) Labour-hire operator penalised for flouting laws relating to overseas
workers on Queensland farms [Online]. Available from:
http://www.medianet.com.au/releases/139139/ [Accessed on 10th August 2019]