Do you know about Adverse Action claims?
The Fair Work Act 2009 provides that an employee has a workplace right to make a complaint or an enquiry in relation to his or her employment.
An employer will contravene the Act if the employer takes "adverse action" against the employee (for example, by dismissing the employee) because the employee exercises that workplace right.
Adverse action is action that is taken deemed unlawful under the general protection provisions of the Act.
What is adverse action?
An adverse action can be any action that is by an employer that adversely affects an employee.
Any disciplinary action taken against an employee (such as a suspension or even a written warning) could constitute adverse action.
Under the Fair Work Act 2009, adverse action against an employee will be presumed to have been taken for an illegitimate reason unless the employer can prove to the contrary.
The onus of proof lies with the employer. The employer must prove that the adverse action was not a result of the employee attempting to exercise a workplace right.
Listed below are circumstances which may be adverse action against an employee:-
- dismissing the employee;
- injuring the employee in their employment;
- altering the employee’s position to the employee’s detriment; and
- discriminating against the employee in favour of other employees of the employer.
Adverse action can also be taken against contractors and potential contractors.
The risks for employers
The general protections in the Fair Work Act 2009 present considerable risks for employers for a number of reasons. Firstly, they are open to prospective and current employees as well as contractors and other workers, they are quite broad.
General protections are accessible by a wider range of people that can apply for unfair dismissal and provide broader remedies, including injunctions.
The minimum employment period that exists before an employee can make an unfair dismissal application does not apply to a general protections application.
Time limits apply
While time limits for lodging claims are the same as for unfair dismissal, damages are uncapped and the reverse onus of proof means the employer is effectively presumed to have contravened the Act unless they prove otherwise.
In cases where a person has been dismissed, applications must be made within 21 days after the dismissal took effect. The Fair Work Commission will only grant an extension of that time in exceptional circumstances.
It is unlawful for an employer to take adverse action against an employee because the employee has made a complaint or an enquiry in relation to their employment.
Courts have taken differing views on what constitutes a complaint or an enquiry. However, there needs to be a sufficient connection between the complaint or enquiry and the employee’s employment.
In circumstances where a person has been dismissed after making a complaint or an enquiry, it is important to promptly seek legal advice to assess whether they may be entitled to make a claim.
Employers need to take care
The law in this area is unsettled and constantly changing.
Employers should assume that a broad range of expressions of discontent by employees could give rise to an adverse action claim.
These could range from issues relating directly to an employee’s rights or entitlements under legislation, industrial instruments or contracts – through to matters relating to how work is performed, and even the employer’s relationships with third parties.
How employers respond to these complaints or issues when raised by employees will be of critical importance should the matter proceed to Court.
Employers need to have effective complaint/grievance resolution processes in place, and apply them fairly when issues arise.
Employers also need to be careful when instigating or continuing disciplinary or performance management processes in respect of employees who raise employment-related issues or concerns.
In those situations, the employer will need to be able to explain and defend its decision-making process (e.g. leading to dismissal or disciplinary action) in order to demonstrate that any adverse action taken against an employee was based on legitimate reasons and was not tainted by the employee having instigated a complaint.
Whether you are an employee or an employer, you need to know more about adverse action claims. Even commonplace employer actions can result in an adverse action claim if HR doesn’t follow the letter of the law and adapt policies to avoid falling foul of the provisions.
If you need further information about protecting your business from Adverse Action from employees or if you are an employee and would like advice an employment law matter please contact us on (07) 5443 4866 or email email@example.com.
(07) 5443 4866