UNSW Sydney · FACULTY OF ECONOMICS

COMM1100 Chap.12 Employment Law and Workplace Rights

- one subject, every graph, every model, every mark
7 Chapters3-page Bible
Our own words - no uploaded lecturer files
Updated for this semester
Chapter 12 of 12 · COMM1100

Employment Law and Workplace Rights

Employees appear on every stakeholder map in COMM1100, and Week 9 turns to decisions involving employees and suppliers.

The optional Employment reading explains the legal frame for those decisions: employment is a contract, but one surrounded by a statutory safety net under the Fair Work Act 2009 (Cth) that no contract can undercut.

This chapter covers the employment relationship and its implied duties, the multi-factor test for telling employees from independent contractors, the main types of employment, the layers of the safety net from the minimum wage to enterprise agreements, the roles of the Fair Work Commission and the Fair Work Ombudsman, and the basic unfair dismissal rules.

Employment decisions are also where the normative and instrumental lenses collide most visibly.

Outsourcing, changing rosters or reclassifying workers can lower costs, but each touches the rights and interests of a stakeholder group the law protects. A complete analysis of such a decision covers the legal floor and the ethical question above it.

In this chapter

What this chapter covers

  • 01

    Employment as a contract with implied duties

  • 02

    Employees versus independent contractors

  • 03

    Full-time, part-time, casual and fixed-term employment

  • 04

    The safety net: minimum wage, National Employment Standards, modern awards

  • 05

    Enterprise agreements and the better off overall test

  • 06

    The Fair Work Commission and the Fair Work Ombudsman

  • 07

    Termination, notice and unfair dismissal

Worked example · free

Is the cleaner an employee?

Q [3 marks]. A cleaning company engages a worker who must wear its uniform, follows a roster the company sets, uses the company's equipment and is paid an hourly rate with tax withheld. The written agreement calls the worker an independent contractor. How should the worker be classified? (Practice weighting used here; not an official COMM1100 mark scheme.)
The safety net, built from the floor up.The safety net, built from the floor up. The national minimum wage and the National Employment Standards are the floor. Modern awards set industry minimums above it; an enterprise agreement can replace the award only if employees are better off overall; an individual contract can promise more than any layer, and that promise is enforceable, but never less.Employment contractmay add pay or leave above the floors belowEnterprise agreementapproved by the FWC; must pass the better off overall testModern awardindustry or occupation minimums: pay rates, penalty rates, leaveNational Employment Standardscannot be overridden by any award or agreementNational minimum wageset each year; employers cannot pay lessthe floor
The safety net, built from the floor up. The national minimum wage and the National Employment Standards are the floor. Modern awards set industry minimums above it; an enterprise agreement can replace the award only if employees are better off overall; an individual contract can promise more than any layer, and that promise is enforceable, but never less.
  • +1Employee indicators: the company controls how and when the work is done, supplies the equipment, requires a uniform and pays a time-based wage with tax withheld.
  • +1Contractor indicators are largely absent: no own tools, no invoicing under an ABN, no freedom to delegate or to build a business with many clients.
  • +1Courts look at the whole relationship, with control weighted heavily, so the worker is likely an employee despite the label; using the label to avoid entitlements would be a sham arrangement.
Likely an employee: control, company equipment, uniform and a time-based wage outweigh the contractor label.
Sia tip — List indicators on both sides before concluding, and give the right to control the work the most weight; never let the title on the contract decide the answer by itself.
Glossary

Key terms

Independent contractor
A worker who provides services under a contract for services, usually running their own business.
Sham arrangement
Disguising an employment relationship as independent contracting, which the Fair Work Act makes unlawful.
Casual loading
An extra hourly amount paid to casual employees in place of entitlements such as paid leave.
Modern award
An industry or occupation instrument setting minimum pay and conditions above the statutory floor.
Enterprise agreement
An agreement for a particular business, approved by the Fair Work Commission, that must leave employees better off overall.
Unfair dismissal
A dismissal the Fair Work Commission finds harsh, unjust or unreasonable, for an eligible employee.
FAQ

Employment Law and Workplace Rights FAQ

Does calling someone a contractor make them one?

No. Courts and tribunals look at the whole relationship, especially who controls the work, how payment is made and whether the worker runs their own business. A label that hides employment can be an unlawful sham arrangement.

What is the safety net in Australian employment law?

It is the set of minimum terms that apply regardless of the contract: the national minimum wage, the National Employment Standards and modern awards. Contracts and agreements can give more but never less.

What does the Fair Work Ombudsman do compared with the Fair Work Commission?

The Commission is the national workplace tribunal: it hears unfair dismissal claims, sets minimum wages and approves agreements. The Ombudsman informs workers and employers, investigates complaints and enforces compliance.

How long does an employee have to lodge an unfair dismissal claim?

The optional reading states that applications must be filed with the Fair Work Commission within 21 days of the dismissal taking effect, and that extensions are granted only in exceptional circumstances.

What are the types of employment the readings describe?

Permanent full-time, permanent part-time, casual and fixed-term employment. Permanent employees receive paid leave and notice, pro rata for part-timers; casual employees work irregularly and usually receive a loading instead of paid leave; fixed-term contracts end on a stated date or at the end of a project.

Study strategy

Assessment move

Treat this chapter as a set of tests you apply to facts: employee or contractor, which layer of the safety net applies, and whether a dismissal could be unfair. Practise each on a short scenario of your own. Then connect the law back to the stakeholder lens: a staffing decision can be lawful and still raise normative concerns, and a strong case-study answer names both.

Working through Employment Law and Workplace Rights in COMM1100? Sia is AskSia’s AI Economics tutor — ask any COMM1100 Employment Law and Workplace Rights question and get a clear, step-by-step explanation grounded in how COMM1100 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

A+Everything unlocked
Unlocks this Bible + all 103 of your UNSW Sydney subjects - and 1,000+ Bibles across every Australian university.
Sia - your COMM1100 tutor, unlimited, worked the way the exam marks it
The full 3-page Bible + practice bank with worked solutions
Chrome extension - sync your LMS so Sia knows your deadlines
Bilingual EN / Chinese on every Bible and every Sia answer
$0.99 Trial
30-day money-back · cancel in one tap · how it works
COMM1100 · Business Decision Making - independent study guide on the AskSia Library. More UNSW Sydney subjects · Microeconomics across all universities