Tool Box
Issue No. 41 - June/July 2008
Letter of appointment - the landmine
by Mr Shayne Bakewell
The Federal Government continues to audit, inspect and prosecute employers who do not comply with their obligations under the Workplace Relations Act 1996.
This includes obligations to comply with the Act, agreements, awards and notional agreement preserving state awards, or NAPSAs.
In this respect, employers need to remember that offers made to employees must also include provisions to protect the employer’s interests against future prosecution for underpayment and fines.
Many employers are under the misapprehension that provided there is a written contract between the employer and the employee, the Letter of Offer need only capture the matters the parties have agreed to.
Most employers are unaware that despite the written contract, the employer remains liable for any entitlement that arises under the Act, an agreement, an award or NAPSA. In most cases, the employee will be entitled to whichever is more beneficial, the contract or the award/NAPSA, should there be a claim.
Typical situations
Examples that often occur in our experience include letters of offer that:
Place employees onto a salary or an all-inclusive hourly rate.
Refer to company policy on matters such as sick leave or annual leave.
Provide other forms of employee benefits in lieu of monetary benefits, such as a car or a car allowance.
All-inclusive salary or hourly rates
Employers often assume that where an award or a NASPSA ...
