QLD Employment Law - Is Employer's New Conditions Legal?

[Suzanne Lister]

My employer has just won a contract which requires all employees to undergo site inductions, training and medicals before work can commence.

My employer has now asked that we all sign a document/letter which states, we will quote, "understand and agree that the training, medical and induction costs for the xxxxx job we are currently preparing for are repayable in full to employer if I leave or if my position is terminated in the next 12 months. I understand that this would be done on a pro rata basis..."

The costs of the above would be above $1000 + hourly rates for time spent.

Should I sign it? is it legal under employment law? Can someone help?

Thanks

 

[Rod]

If it was me I'd cross out the bit that says "if my position is terminated" and then sign it and hand it in.

If they ask why I did that, I'd say it is not fair to me if you make me redundant and you want me to pay for expenses that are of no benefit to me.

 

[Rob Legat - SBPL]

Under the Fair Work Act, there are limited abilities for employers to make deductions from payment. The most common one for this issue is where the employee authorises it in writing and it is principally for the employee's benefit.

Training is able to be seen as for the employee's benefit, so deductions for that hold up. The medical is another issue, and it would come down to whose benefit it is for.

Pro-rating over 12 months might be acceptable. Generally the longer that goes by, the less that can be lawfully deducted. Some employment agreements stagger it over a longer period but drop it in percentages over 6 month periods.

Differentiating between the method of termination of employment may not be warranted. You don't want a situation where someone who is unsuited for the job stays in it for fear of having to pay back training expenses - that could be dangerous for everyone. While I accept Rod's notion, this fear could be overcome by considering whether the training is for the employee's benefit. If it isn't training that is usable elsewhere, it's arguable that it's not for the employees's benefit - and therefore can't be deducted.

 

[Rod]

If the employee is unsuited for the job the employer has made a mistake employing them in the first place and the employee should not be penalised for their mistake.

Without knowing the nature of the training it is hard to comment on whether the employee benefits from completing it.

I agree with Rob's comments from a purely FWA perspective and without more information it is not possible to know whether it is legal. Rob's given you the basics and hopefully you can work it out yourself.

I was approaching the issue from what you should do in practice and what is fair to both parties. I note the law does not always achieve a result that is fair to both parties.

 

[Adam1user]

I can add to Rod and Rob's comments as follows: you need to look at it from the benefit of the two parties.

In my opinion:

- The medical expenses should not be included as it has to be done unless you do not disclose medical issues that will affect your employment in any way or form. If you disclose these issues, they will have an effect on the decision of your employment (assuming that you are a newly hired - I know you are already working there but to clarify my point).

- Induction expenses should not be included as it is required for every new employee, it is overhead costs to the company.

- Training expenses: if the training you received will help you in other positions, not just relating to the company, then it is fair it should be included in the repayment if you leave or get terminated from the work place. If the training is for the benefit of the work place like their systems, then it should not be included.

What I mean by included is included in the amount to pay back upon leaving/quitting/being terminated from the work place. If you are terminated (fired/kicked out), that means you did follow the policies and procedures and you made a huge mistake, so it is the right for the company to ask for payment as you have wasted their resources.

 

[Rod]

means you did not follow the policies and procedures and you made a huge mistake

Not necessarily true. People are sacked for all kinds of inane reasons by incompetent or vindictive employers. Proving this is often hard so better to not agree to a term whereby an employee pays for the actions of an incompetent or vindictive employer.

Otherwise agree with your post, some good points there.

 

[Suzanne Lister]

Thank you all. The 'training' is for the specific work site only, no benefit to me in the future. The medical, induction and training allows us to work on this specific site only.

 

[Rod]

So I am back to my first post "cross out the bit that says "if my position is terminated" and then sign it and hand it in" and see what, if any, push back you receive.

A reasonable boss won't blink at the change.

If your job is on the line it may be better to sign as is then take them to task later if you are sacked (under duress, no legal advice, unfair dismissal etc).

If you do modify the agreement make sure you keep a copy especially if they 'force' you to sign an unmarked version. The first copy may come in useful if there is a later dispute